Wednesday, April 6, 2011

Unattached, Unconcerned, Unassimatible

A profile has been created of Chinese investors in the U.S. using a immigrant visa program for investors, the EB-5 visa program, by the immigration bar that assists these immigrants.

Many immigration attorneys have asked me about EB-5 investors from China. The majority of Chinese EB-5 investors share the following characteristics:

Who Are They?

-Mostly male, married, between 40-50 years of age

-Private business owners, individuals who made wealthy through investment in stocks and real estate

-The Chinese are willing and eager to invest in the U.S.

Where Are They Coming from?

-Shanghai, Beijing, Guangzhou, Shenzhen, ChongQing and 2nd tier cities such as Hangzhou, Shenyang, Chengdu, etc.

What Do They Like?

-Projects in areas with large Asian or Chinese population

– They want to stay closer to their own culture, food, language and media.

-Want Green Cards, also prefer to have a real estate unit in the investment exit strategy. Chinese love real estate.

-Better (perceived) value or return with low risk

– they expect good ROI and little risk!

What Are the Motivations to Invest Overseas?

-For the sake of their own children’s education, safety and future

-Protecting personal assets and family fortune

-Seeking permanent residency (Green Card) and new business opportunities in the U.S.

It is clear that the Chinese "investors" are not interested in creating jobs in the U.S. The emphasis on real estate is a telling fact, as is that the "investors" made their fortunes in real estate and the stock market. Basically a group of gamblers, not creators, innovators, or manufacturers. There is no shortage of those already in the U.S. willing to gamble on stocks, bonds, and real estate. Buying a piece of property creates few if any jobs. It is also clear that they are not interested in assimilating. They are only interested in remaining Chinese in a little artificial "Chinatown" where they don't have to interact with the natives, a common tendency for all Overseas Chinese They are "investing" only in a green card, an exit strategy for when the Chinese economy collapses, and freebies for their family. Like the naked officials, they also want to hide their fortunes from the Chinese government, which means they are also most likely hiding it from the IRS.

There we have it, instead of an entrepreneur class, bringing new manufacturing to the United States, we have a self-described isolated group not seeking any meaningful interaction with Americans, culturally close-minded rent seekers, doing nothing to build anything. Hardly what the EB visa program promised. Like the sub-literates coming from India, they are adding nothing to the country.

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