Poors are patriotic & Riches flee: From a Sharp Drop in Foreign Exchange to a Spike in Unemployment

there is such a place that's particularly funny the poor are very patriotic while the rich start planning to flee once they become rich it's very friendly to foreigners but turns a blind eye to its own people no matter what hardship they face it spreads money all over the world showing the power of a green Nation it claims every day that everyone is whole but divides its people into different grades and privileged classes are everywhere policeman in this place don't help those who fight for their wages defend their rights but help capitalists to suppress workers this place is full of Praise but if you speak the truth they will say that you are disrupting the social order people are collectively silent in this place the media is like a decoration the way to solve problems here is to silence the people who speak people living on this land have trouble feeding and clothing themselves but they go around the world offering charity and save people from their sufferings who Do You Think You Are the bodhisaba guayin the Savior if that's the case you need to be like the Golden Monkey and cultivate yourself to fruition but you're nothing you claim to help others but do you know what you are in other people's eyes you're a lap dog to others we all wish this place to become better because they are kind-hearted elderly people lovely children and a bunch of nice people living on this land guess where this is this is China on June 13 2023 Henley and partners and International Investment immigration consulting firm based in London released a report it stated that China would have the highest net outflow of hnwis or high net worth individuals each with investable assets over U.S 1 million in 2023 it's a trend that has been rapidly accelerating since 2022 when the Communist Party lifted its zero coved policy and opened its borders in 2022 approximately 10 800 wealthy individuals left China and in 2023 it's expected to reach 13 500. the recent Capital outflow has been more damaging than ever to the Chinese economy as overall wealth growth in China has slowed over the past few years the top three most popular countries for Chinese to immigrate are the U.S Canada and Australia followed by the UK and Singapore some European countries with lower immigration thresholds such as Portugal Ireland and Malta have also become their targets in the first quarter the national immigration management agency verified a total of over 65 million people leaving the country among them over 32 million were Mainline residents over 29 million were residents of Hong Kong Macaw and Taiwan and over 3 million were foreigners today is Monday May 15th and this is the tienho District of Guangzhou City you can see another long line and the line is really long today such a scene in front of the U.S consulate in Guangzhou isn't something unique that goes away in a day or two it has been a lasting fervor with more and more Chinese flocking to the U.S consulate here is a scene of the same place 15 days later it's Tuesday May 30th 2023 and it's not even time to enter yet this is what we see outside the U.S consulate in Guangzhou it's just after 7 A.M and some people have been lining up since 6am the consulate doesn't open until 7 30 a.m it requires an advanced appointment for a visa interview however in recent months there are basically no appointments available in Shanghai is similar U.S visa interviews are generally scheduled about three months in advance however appointments both in Guangzhou and Shanghai are no longer available despite a three-month Advance not to mention with less lead time the peak period for visa application is in the months of June and July currently appointments at the U.S consulate in Guangzhou are already scheduled for October the Consulate in Shanghai is already scheduling for November it isn't very hot in Guangzhou today it's over 30 degrees Celsius or 86 Fahrenheit in the morning as you can see there is a very long line outside the consulate today the next thing we'll look at is the situation at the windows for immigrant visas and non-immigrant visas after admission those to the left are for immigrant visas while those to the back are for non-immigrant visas you can see that there are some people with children here who are applying for immigrant visas to the US there were about 40 people in line let's look at the non-immigrant Visas including work visas study visas and visitor visas as you can see there are two lines today previously there was only a single line there were obviously many more people here than there are for immigrant visas let's take a look at the U.S consulate in Beijing even though the number of interview counters at the Beijing consulate has been increased to 12. people still have to wait in long lines maybe it's because there has been a rise in the passing rate of interviews recently and everyone is coming maybe this is our shared dream that everyone is pursuing go go my friends in the report by Henley and partners the International Investment immigration consulting firm it's estimated that more than ten thousand Chinese tycoons immigrated in 2022 taking with them about 4.8 million US dollars per capita for a total of 48 billion USD leaving China and this year in 2023 the number is expected to get even bigger known Chinese tycoons who have emigrated with their Capital overseas include many prominent Mainland Chinese or Hong Kong business celebrities for example the founder of real estate developer Country Garden the founder of sunac group and the former chairman of Chinese Estates the list goes on so as China's wealthy Emigrant overseas and a lot of assets are moved out how will it affect Chinese Society according to the National Association of Realtors annual report Chinese buyers remained the number one foreign buyer in U.S residential sales with 6.1 billion continuing a trend that has been in place since 2013. nearly 58 percent of Chinese buyers made cash purchases the average purchase price was just over 1 million with 31 of them buying in California in fact not only in California but also in the eastern part of the U.S such as New Jersey New York Connecticut and in the city of Vancouver in Canada there have been many Chinese buying with cash these funds are among the gray incomes of corrupt officials who use their power for personal gain and Corruption in May 2022 news broke that a large amount of deposits disappeared from Village banks in Hanan it was the result of a collusion between senior Bank management and the local government they took advantage of the lack of supervision of the banking industry and ran away with the money a Twitter user disclosed that the deposits and the village Banks amounted to RMB 40 billion or about U.S 5.6 billion of which 2.8 billion was used to bribe senior officials these officials were at the level of the politburo standing committee the ccp's highest decision-making body or their family members another 1.4 billion was used to bribe local officials the banks ended up with no money to cover their deposits the authenticity of this information cannot be confirmed but it's in keeping with the corrupt operation of the CCP official Dome here one depositor is being followed just after arriving in Zhengzhou the capital of Hanan province [Music] look at these two people everywhere I go they follow me I don't even have personal freedom anymore I deposited my money with her name Village bank and now I'm breaking the law I deposited money to your bank and now I have become a criminal I have become a depositor criminal I got off the high-speed rail yesterday and was dragged a few hundred meters I then passed out and became unconscious I was rushed by 120 to the emergency room today I don't even have the right to walk on the street freely this man is a police officer in Zhengzhou City [Music] [Music] from henan Province danway Province the same incident is spreading One Way government returned my deposit on way Bank returned by deposit on way government returned my deposit on way Bank returned my deposit [Music] it's speculated that most of these corrupt officials have transferred the money overseas after receiving it many real estate companies might have worked as their white glove which refers to an intermediary who launderers money handles the Dirty Deeds while leaving the client's Hands Clean the homeowners pay the mortgage and the banks get the money but the developers don't have the funds to finish the construction what's going on where did the money go in reality the developer the bank and the local government work together deciphon off the fund for example evergrand has only a few hundred billion RMB in assets but its liabilities are as high as 2 trillion RMB where has this money gone in truth people inside the CCP system have a better understanding that the CCP has no way out thus a large number of bear officials have appeared they send their wives and children overseas to establish themselves if anything goes wrong in mainland China they can immediately flee with a flight ticket and jump off the sinking ship the way they handle their wealth may be different but the starting point and motivation are the same they all know that the red system of the CCP is a sinking ship they have no more confidence but still want to exploit their power or resources to get as much as possible in the short term the concentration of wealthy groups emigrating will take away a large amount of wealth in a very short period of time the rapid transfer of Foreign Exchange Assets in the short term will have a direct impact on China's foreign exchange system even endangering China's foreign exchange security and shaking its foreign exchange base in the medium term if the capital flight becomes large the pool of social wealth that people in mainland China can share will diminish with the massive transfer of assets the investment and employment opportunities in China will rapidly decrease leading to an inevitable result of a widening wealth Gap in the long run the brain drain as a result of the wealthy group leaving China will cause a shortage of innovation and intellectual resources significantly limiting the development of the society or even leading to a societal decline according to a wealth report released by Knight Frank a global real estate advisory firm in mid-may 2023 Hong Kong and China saw a decline in the population of ultra high net worth individuals while Singapore emerged as one of the top 10 fastest growing countries and regions 2022 saw the number of ultra high net worth individuals or uhnwis in Hong Kong drop by six percent to 5686 while mainland China recorded a uhnwi population of 88 024 in 2022 a drop of 5.9 percent compared to the previous year the loss of wealth and intellectual Elite in a society means that there must be a serious crisis in the society the departure of the backbone of society will in turn contribute to the acceleration of this social crisis thus forming a vicious circle that greatly impacts Chinese Society so why do so many millionaires choose to flee China we have summarized the following factors first the CCP system is characterized by political uncertainty in high risk the ccp's political system is characterized by a high degree of centralized power and party State unification uncertainty in policy making and implementation frequent and unpredictable policy changes power struggles among officials and most importantly XI jinping's policy of common Prosperity have made the rich fearful that their hard-earned wealth would be divided up overnight the ccp's policies change all the time one day it Advocates reform in opening up for all people next it starts to strengthen state-owned Enterprises and then it starts to push the state Enterprises and suppress the private Enterprises considering them as a threat to the planned economy of the CCP it eventually resorts to force to crack down on the rich group at the same time the ccp's warwolf diplomacy has led to the country's increasing isolation politically it is becoming more like North Korea and economically it's moving back to the planned economy model making the wealthy fear that they have gradually lost the space to continue to develop their businesses in China here a police department at the provincial level in Southwest China is reading aloud a book by party leader Xi Jinping the department has made it a regular part of the official's homework during working hours it looks like the cultural revolution 2.0 is playing out in China foreign policy has triggered a mass Exodus since the implementation of the ccp-0 covid policy in 2020 public concern over immigration has also set off a movement of runology online ronology is taken up to the English word run which means to escape and flee China if one can in an interview with the voice of America Ms Zhao who works in finance in Shanghai said that Shanghai is a first-tier city in China and the most International and liberal City she used to be proud of being a Shanghai resident until the 4-0 covid policy by the government it changed her perspective and made her start thinking about the possibility of immigration she said she would choose some European countries with lower thresholds as our immigration destination given the cost of immigration the working environment and the cultural atmosphere of the countries she said what really influenced me to leave Shanghai is that this very extreme epidemic prevention policy has made people think if anything happens in the future will the Chinese government use such extreme policies again third the CCP strict restriction on Capital flow prompts the rich to move their assets the CCP has imposed strict control on the flow of capital in China it isn't easy to move money out because of an annual quota of 50 000 US Dollars previously there were still some underground channels to exchange money but the Chinese government's controls on immigration and capital outflows have become increasingly strict and the wealthy are faced with the challenge of moving capital and investment abroad the rich in China have in fact been looking for options to move their assets out of China over the past few years opening family offices overseas is one of the ways through which they are able to preserve wealth passing it on to the next generation for example Singapore has opened more than 400 family offices in the past few years almost half of which are Chinese Singapore has now become the country with the fastest growing family office in Asia fourth the freedom of speech and political Freedom restrictions on freedom of speech and political Freedom are also part of the reasons for the flight of China's wealthy freedom of speech in China is severely restricted and the Press is tightly controlled political activities and Civil Society organizations are suppressed as well the wealthy want to express their views participate in public affairs and enjoy their personal freedom in a more open and free environment thank you [Music] this man a resident of Shanghai took his mother to Thailand to look at houses with the goal of leaving China Beyond who appeared at the beginning of the episode went to Thailand to buy a luxury home because he thought it was important to be free and safe there's more freedom and convenience in Thailand the freedom to enter or leave the country to travel back and forth as well as the freedom of society and life freedom is very important fifth the education and living environment China's wealthy are more concerned about the education and living environment in which their children will grow up as China's Society becomes more competitive the wealthy are concerned about whether the education system in China can provide the education quality they expect at the same time environmental pollution food safety issues and social pressures are causing them to worry about the health and well-being of their children in order to provide a better education and living environment they choose to leave China the Chinese website of Japan economy reported about Mr Lee and his family from Guangdong Province who moved to the U.S it took 2.5 years since Mr Lee filed his immigration application but he finally got what he wanted he said it's all about the education of my children I really can't stand the old-fashioned way of spoon feeding in Chinese schools I definitely don't want my children to go to Chinese schools if we go to the U.S where creativity is important we can give our children a good educational environment this is our responsibility as parents in China in order to stand out from the fierce competition children are faced with test battles as early as kindergarten not only that but from primary school to high school college and graduate school Mao Zedong thought and Marxism leninism are required subjects much time is wasted on ideological education many Chinese parents have doubts about such an education model [Music] thank you foreign