Since China’s Economic Reforms in the 1980s there have been loads of Chinese making their fortunes, but after getting their fill of the place a lot of them up sticks and head overseas, what gives? I’ve come up with the following three points to try and understand it:

1. Where do these rich guys come from?

Mr. Yang Jisheng once spoke in a lecture about the origins of China’s millionaires. He said: “China’s Economic Reforms massively opened up the income gap across the country, partly for normal reasons and partly for unusual ones. Many town and city dwellers were the recipients of ‘grey income’ which was the main cause of the income gap in the first place. ‘Grey income’ comes in the shape of social security, government funds and the siphoning off and appropriation of other official funds. This is financial corruption at its most basic level, that is to say stealing as much as a third of official funds meant for building projects. As well as being forced to pay back the interest owed on these loans, the borrowing companies would be expected to pay additional fees of 9% of the total loan. With State loans in 2006 alone coming to a staggering RMB 2.2 trillion that provided a ‘grey income’ of as much as RMB 2000 billion.” Yang also highlighted the misappropriation and black market selling of government land as another way for city dwellers in positions of power to make their fortunes overnight.

From Mr. Yang’s lecture it is clear that many of these big shots made their millions through less than honest means, and it is through a sense of fear over their security here in China that many seek residence abroad. 

2. Changes at home and abroad force rich Chinese overseas 

Since the break up of the Soviet Union and the ebbing of Communism around the world the USA has had free reign and caused the kind of havoc that we are seeing now with the current global economic instability. This kind of internationalization and encroachment of America has lead many Chinese civil servants to pour a lot of their acquired assets into foreign investment funds, therefore raping and pillaging China’s domestic funds and causing ordinary people to loose out, while at the same time breaking down the trust the Party has with the people. One thing is for sure, with everyone fully aware about the level of corruption among many civil servants, no matter which way China goes politically in the future, those corrupt officials are safer abroad.

3. China’s millionaires’ own political convictions drives them abroad

Most of China’s Millionaires are from the bureaucratic classes and for generations have, despite the slight pause during the Cultural Revolution, maintained a high place in Chinese society. They were also the people that it seems Comrade Xiaoping talked about when he mentioned some of us ‘getting rich first’. 

These are the new co-called aristocrats of China and it would appear that their political way of thinking is pretty base. It was these people that during the ‘turbulent’ years came off worse and so they now have a massive chip on their shoulders when it comes to Communism and the political path drawn out by Chairman Mao. It is no wonder then that many of these wealthy elites are taking out their hatred on this system and in turn damaging their own country. 

As a result there are many on the left in the CCP that take it upon themselves to fight this rightist, power grabbing faction and protect Chinese Socialism and the essence of China. It’s no wonder then that for many Chinese millionaires escape abroad is the only way of guaranteeing their safety and the safety of their fortune. 

***

Hot Topic - Companies in China to inform gov't of layoffs 30 days prior
China Media - Uncovering the secrets of lover leasing during Spring Festival (Part 1 of 2)
Hot Topic - Three Decades on, China's Migrants Still "Outside Looking In"
Hot Topic - China orders officials not to sightsee aboard on public money
Business Guide – Shenzhen: Introduction | Business Environment | Business Services

Warning：The use of any news and articles published on eChinacities.com without written permission from eChinacities.com constitutes copyright infringement, and legal action can be taken.