- money.cnn.com/2014/03/25/news/economy/
china-us-immigrant... Cached
Rich Chinese have been applying in droves to a U.S ... Rich Chinese overwhelm U.S ... Immigration lawyers said that even more applications have ...Rich Chinese overwhelm U.S. visa program
March 25, 2014: 10:22 PM ET
HONG KONG (CNNMoney)A dramatic surge in interest from wealthy Chinese is threatening to overwhelm a U.S. program offering investors green cards in exchange for cash.
The number of applicants is now so great that the government might run out of permits.
Any foreigner willing to commit at least $500,000 and create 10 jobs in America can apply for an investor immigrant visa -- also known as an EB-5.
The demand from mainland Chinese eager to move abroad has already led the U.S. government to warn the program could hit a wall as early as this summer.
Chinese nationals account for more than 80% of visas issued, compared to just 13% a decade ago, according to government data compiled by CNNMoney. That translates to nearly 6,900 visas for Chinese nationals last year, a massive bump up from 2004, when only 16 visas were granted to Chinese.
"The program has literally taken off to the point [that] in China, the minute anybody hears I'm an immigration lawyer, the first thing they say is, 'Can we get an EB-5 visa?' " said Bernard Wolfsdorf, founder of the Wolfsdorf Immigration Law Group.
"There is a panic being created in China about the demand [getting] so big that there is going to be a visa waiting line," he said.
Related story: Invest $1 million, try for a U.S. green card
The EB-5 program is limited to 10,000 visas per year, a number that includes visas granted to an investor's spouse and children.
At the moment, there are 7,000 applications pending, said David Hirson, a partner at immigration law firm Fragomen. If just half are approved -- and each investor moved with two family members -- the program would easily surpass its annual limit.
Immigration lawyers said that even more applications have been made since Canada ended a similar program last month that was also popular with Chinese.
For rich Chinese, opportunities in America are attractive. A green card offers a way to send their children to college, escape heavy pollution and enjoy an improved quality of life, said Kate Kalmykov, an attorney with Greenberg Taurig. Plus, the EB-5 program is relatively cheap.
"The cost is very reasonable in relation to other countries," Hirson said. Australia, for example, requires a $4.5 million investment -- nine times the minimum required in the U.S.
Related story: Europe's golden visas lure rich Chinese
The comparatively low cost makes the program a viable option for increasing numbers of Chinese -- especially as household wealth in the country booms. China now boasts more than one million millionaires, according to a study by Hurun Report, an organization that tracks wealth in China.
The program's popularity has even spurred a cottage industry of investment consultants, immigration specialists and specialized relocation agents that cater specifically to the Chinese, Hirson said.
Supporters say immigrant investors have provided an important alternative source of financing, benefiting projects from Brooklyn's Atlantic Yards real estate development to a North Dakota factory that makes biodegradable food containers.
Related story: Where rich Chinese want to live
But there are plenty of critics, too. Some argue that the program is a way for the global elite to buy U.S. citizenship. Others say the scheme has too much red tape, and believe parts of it are mismanaged to the point of fraud.
Long visa waits or not, there are no signs of interest waning in China.
"The U.S. remains the most attractive country for them, because of its freedoms and its ability to cater for individual needs, including the Chinese culture," Hirson said. "It's a very comfortable transition physically."
end quote from:Rich Chinese overwhelm U.S. visa
program - Mar. 25, 2014 An EB-5 was started to encourage investment into the U.S. economy from Abroad. For rich Chinese this is a win win situation where they can invest in the U.S. economy and create at least 10 jobs here for U.S. Citizens and as a reward for doing this they get a green card to live here. This idea is a good one during the present and past economic situation of the U.S. where growth is lackluster compared to the way it was previous to 2006 and 2007. There is also a quality of internationalization of the U.S. culture that might come from this as well. Another factor is this might reduce potential conflicts between the U.S. Government and the Chinese Government because the people who are the richest in Chinese culture also tend to be the relatives and friends of the leadership of the Chinese government in most instances.
So, China would tend not to engage in Violence against the U.S. mainland because of all their friends and relatives living here through the use of a legally granted Green Card under an EB-5 classification.
The wealthy from other countries besides China likely are taking advantage of EB-5 Green Cards as well which will greatly increase U.S. GDP over time.
Relative freedom with mostly relatively unspoiled ecology as well as unlimited business opportunities make the U.S. a good investment for the wealthy and their families from around the world.
To the best of my ability I write about my experience of the Universe Past, Present and Future
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