Rich Chinese Worth $48 Billion Want to Leave — But Will Xi Let Them?

Harry Hu is one of many wealthy people in China who are planning to move out of the country.

The Covid-Zero policy has made China a global outlier, and Hu is joining a group of 10,000 high-net-worth residents who want to leave China this year.

The fate of China's rich is now in the hands of the government.

Immigration lawyers say that moving has become more difficult in the last few months as passport processing times have increased and documentation requirements have become more burdensome. It has become harder to move large sums of money out of China after overseas counterparties stopped helping residents sidestep the country's capital controls.

The government has put a premium on stability ahead of a leadership confab later this year at which the president is expected to speak.

Nick Thomas, an associate professor at the City University of Hong Kong, said that the potential departures of people and capital are a cost to the Chinese economy. He pointed out that the risk from Covid is being built into economic plans and corporate models in almost every country in the world.

Hu said he was intent on moving to Canada despite the obstacles.

The 46-year-old, who recently sold most of his stake in two high-end restaurants in the most developed city in China, said that he almost died at the beginning of the lock down. I am sad but it is time to go.

In the spring of this year, inquiries grew five-fold compared to a year earlier, according to migration consultants and lawyers in China. Interviews with seven bankers who are not authorized to speak publicly show that inquiries about moving money out of the country have grown.

"Many really felt they had no other options given the Covid lock down," said a migration consultant who didn't want to give her full name. I have seen people who used to be hesitant about emigration make up their minds.

A recent note from a billionaire in China that he plans to move his family out of the country went viral on social media. The chief executive and chairman of the company did not mention the lock down, but said that the move was for family reasons. There is debate about the growing desire to emigrate.

The US, Singapore, Australia and Canada are some of the popular destinations. Some countries have made migration processes more strict. Private bankers said that places like Spain, Portugal or Ireland could become more popular because of their investment requirements.

The number of family offices doubled in Singapore at the end of the year. Demand has grown quickly among the families of Chinese entrepreneurs, suggesting that the ultra-rich have already left.

Quick take on why China is sticking with its covid zero strategy.

There are a lot of institutional barriers to leaving China, according to a research fellow at the Lowy Institute. There are hurdles from where you want to emigrate to, not the least from China.

Obtaining the necessary paperwork to leave China is more difficult today than it was a few years ago.

Since late 2020, the Chinese government has discouraged non-essential travel due to Covid prevention measures. In May, China's National Immigration Administration said it would tighten the approval of entry and exit documents for citizens.

faxed requests for comment were not responded to.

A client of a private bank tried to get her child a visa to study in Singapore but was denied by the local government agency.

If you want to emigrate from China, you need to know how to move money out of the country. The citizens are only allowed to convert $50,000 into foreign currency annually. wealthier people have been able to find ways around the rule, but some of those options are no longer available.

One year ago, there were viable options for shifting money out of China, such as using cryptocurrencies or private arrangements with an overseas counterpart. In the last few years, China has banned almost all activities related tocryptocurrencies, including exchanges, initial coin offerings and mining.

According to a Hong Kong-based private banker who was not authorized to speak publicly, swap agreements are becoming more difficult to come by as fewer people want to move money into China.

David, who declined to give his last name due to sensitivities, is hoping a fast-tracked path to a US green card could help him move money out of China. People who have obtained permanent residency in another country can make a one-time transfer of a large amount of money.

The consultant said that he was leaving because of the slowing economy, Covid policies and tensions in the Middle East. The US is likely to give more opportunities for business growth.

David plans to apply for a visa that will allow immigrants of extraordinary ability to live and work in the US, and then set up a business in Texas that uses data and artificial intelligence to help the oil and gas industry.

The inconveniences and uncertainties of the country's approach continue to roil everyday life despite China's recent decision to cut hotelQuarantine for international arrivals to as few as seven days. The most effective strategy for China is Covid Zero, according to the president.

As Covid cases persist and mass testing drives have been ordered, many residents still fear that the city could go into lock down again.

Hu isn't giving up on his plans to emigrate.

Hu said that he had thought about leaving China before, but now he was determined to leave. He submitted materials for his visa and passport renewal over a month ago but hasn't heard back.

Reporting by Lisa Du and others.

The help was given byDenise Wee, Lulu Yilun Chen, Dong Lyu, and a few others.