China: the Strongest Economy -- Well, Maybe Not

[sagegrouse]

Here's a tidbit from CNBC that absolutely floored me -- most of the rich are leaving China!

Do the wealthy Chinese know something we don't?

A new report shows that 64 percent of Chinese millionaires have either emigrated or plan to emigrate—taking their spending and fortunes with them. The United States is their favorite destination.

The report from Hurun, a wealth research firm that focuses on China, said that one-third of China's super rich—or those worth $16 million or more—have already emigrated.

Smog, congestion, better education for children, and protection of wealth are cited as reasons. Sales of Bentleys [gasp!] have fallen. Does this mean that the most entrepreneurial Chinese are leaving the country, or does it mean that those who have made $$$ through connections and perhaps corruption are fleeing to protect their assets?

One never heard of this during Japan's heyday 20 years ago or at any time for the USA.

[duke74]

Here's a tidbit from CNBC that absolutely floored me -- most of the rich are leaving China!



Smog, congestion, better education for children, and protection of wealth are cited as reasons. Sales of Bentleys [gasp!] have fallen. Does this mean that the most entrepreneurial Chinese are leaving the country, or does it mean that those who have made $$$ through connections and perhaps corruption are fleeing to protect their assets?

One never heard of this during Japan's heyday 20 years ago or at any time for the USA.

In Queens, NYC, we're seeing the third wave of Chinese immigration (in general terms). The first was from Taiwan. Next came the post 1997 "hand-over" Hong Kong immigration - folks with wealth. Now I am seeing an influx of mainland immigrants, again with wealth. Additionally, I'm an adjunct prof in a graduate accounting program. In a number of my courses, a full 2/3 of the students are from the PRC - to study in the masters programs (MBA and MS). Per my discussions with them, some are returning home with the degree, but others plan to stay here.

My own neighborhood of Forest Hills Gardens (as well as FH generally and Rego Park) has experienced a surge in real estate purchases by Chinese immigrants. And many on this board from the metro NYC area are aware of the section of Queens called Flushing - a long time destination of a number of Asian groups, principally Chinese and Korean. It is often said that NYC is a city of immigrants - this trend is a continuation of that phenomenon.

[budwom]

There are several (dangerously) growing bubbles in the Chinese economy, including real estate. I can see why
some wealthy are looking to lock in their gains and get the hell out.

[tecumseh]

There are several (dangerously) growing bubbles in the Chinese economy, including real estate. I can see why
some wealthy are looking to lock in their gains and get the hell out.

If there is media bias in this country it is in the kid gloves that all major outlets treat China, on this MSNBC and Fox agree. There is serious cultural rot going on in China and that is a big reason why people want to get out. The one child policy has had a corrosive effect as parents raise spoiled children who they push desperately to get ahead. The mass translocation of individuals, not families, to the cities has led to an extremely aggressive society that is apathetic to the suffering of their neighbors. There is rampant exploitation and corruption. Even the Chinese leaders know if they don't get a handle on things fairly quickly the pot will boil over.

[throatybeard]

I just want to speak up for not reflexively locking this thread down on some sort of PPB basis. The economic rise of China is one of the most fascinating topics of our time, and what happens with that is going to be the story of this century, I think. That's no insight on my part. It's just huge.

[Reisen]

My sister-in-law lives in Flushing. Probably one of the best places on the East Coast to get authentic Chinese food (if you're into that. It's the real deal).

In terms of real estate, in many areas, the Chinese are one of the principal causes for the recovery in the US real estate market. Take my community here in Northern Virginia (Vienna). When I moved in 8 years ago, my neighbors in my row of town houses were 3 caucasian families, and one Thai family. Now, all four are Chinese. They are changing both the general demographics of the region, and even within the Asian demographic, the specific cultural background is rapid skewing Chinese.

[77devil]

I just want to speak up for not reflexively locking this thread down on some sort of PPB basis. The economic rise of China is one of the most fascinating topics of our time, and what happens with that is going to be the story of this century, I think. That's no insight on my part. It's just huge.

China's share of the world economy has increased from 2% in 1973 to 15% in 2010. (The U.S. is about 20%.). The changes I have seen in China in the last 20 years are staggering. Still, it is a poor country with a per capital GNP 85% below the highest in the world. As companies move capacity to lower cost countries in Asia, China needs to figure out how to create more domestic demand to sustain a growth rate that can meet the needs of a population that grows another Australia every 2 years.