Wealthy Mainland Chinese Rush for US EB-5 Visas

San Francisco International Airport, 2005
(photo from sfgate.com)

Around the time Hong Kong was in its final stages of British colonial rule, the Canadian government offered a special residency opportunity for foreigners. Those wishing Canadian citizenship had to bring plenty of money, keep the stash in Canada, and -- presto! -- they would qualify for a Maple Leaf passport. The program was notably successful at attracting Hong Kong families and their cash, with British Columbia and Toronto preferred destinations. No one was hurt, although the feelings of understandably sensitive Chinese government officials probably were.

The United States, now in the throes of a dreadful debtor environment, has taken a page from Canada's book. The Land of the Free and the Home of the Brave now offers an "EB-5 Immigrant Investor" visa. The conditions for obtaining this gateway to permanent resident status is a relatively simple one. Basically, the applicant brings millions of dollars, invests some of it in "economically challenged areas,"and sits tight with the investment for a couple of years. If all those hurdles are cleared, the applicant and immediate family under age 21 get permanent residency status. (An example of the aggressive pursuit of candidates for this passage is something called the Utah Regional Investment Fund. The site is available in English and Chinese.)

According to an article in today's Mercury News, the EB-5 visa is a hot item for wealthy mainland Chinese. Riches have a decidedly yin-yang aspect in China. Unquestionably, money talks and opens doors in the PRC's complex power arrangements. On the other hand, the wealthy are ripe targets for those who consider blackmail and corruption to be profit centers. The United States is viewed as a relatively safe haven, and areas with significant Asian populations, such as California's Bay Area, are desirable landing places for this human and fiscal capital flight.

We may see much more of this type of exodus in the coming years, and not only from China. It's a curious thought to consider on a Passover evening.