Chinese Economics Thread

[Overbom]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

it's overseas investment dude. They invest their money overseas because they want greater returns or divestment or whatever, they better pay tax then

They gain benefits from China's development, then they also have to give something in return. It's a fair trade

And, this has been the law since quite some time but it just wasn't enforced

 

[dingyibvs]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

Sure, if they think they can make more money than where they got wealthy in the first place, then go ahead. China would have no one to blame but itself for not providing them an opportunity to be wealthier and/or live a better life. I mean, if that's the case this would happen anyway, as it has indeed been happening for many decades as many wealthy and/or educated Chinese emigrated overseas to seek greener pastures.

 

[Overbom]

Sure, if they think they can make more money than where they got wealthy in the first place, then go ahead. China would have no one to blame but itself for not providing them an opportunity to be wealthier and/or live a better life. I mean, if that's the case this would happen anyway, as it has indeed been happening for many decades as many wealthy and/or educated Chinese emigrated overseas to seek greener pastures.

no this is not how it is. Yes, they made money because of their own efforts but don't forget the tremendous investment that the state has put on national development for them to be even be able to extract so much wealth

Rich people always like to think themselves as gods who them alone with only their efforts deserve all that money but in reality thats not how it works when everything is taken into consideration

 

[coolgod]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

https://twitter.com/i/web/status/1636451938161008640

That is an argument for dumb rich people, smart rich people know whats coming. Singapore would bend the knee when the Uncle Sam comes knocking and confiscate the assets of rich Chinese.

 

[GiantPanda]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

To be replaced by millions upon millions more in China. Those who move in this day and age are the who already made their bones with RE and old standbye exports like shoes and toys.

If you are in the high value space -- EVs, green tech, semicon, aircraft, HPCs, etc. -- there is no better place to expand and grow than China.

China gave up far more during Deng's era when he let the highly educated -- educated by the state too -- leave for secondary education in the West. In the beginning less than 10% returned. But we saw what happened afterwards.

The ones leaving would leave anyways by pushing money they earn in China out of the country as "investment" into Vancouver, Flushing, Monterrey Park, Markham ... this claws back at least some of it.

Over time, they'll learn that investing in the West other than property, like for actual business, will get them little beyond maybe a chain of McDonalds in Chinese neighborhoods or Panda Express franchises if they venture into white suburbs. At which point, like the Overseas students they'll start re-investing in China.

 

[Jiang ZeminFanboy]

As said before, based

https://twitter.com/i/web/status/1845989068578177248

Also

Please, Log in or Register to view URLs content!

It's good that they are enforcing this now, it will help with capital flight and help strengthen RMB plus government get more tax income.

Also China is so based, in the West when you have overdue taxes your penalties will eat you up, in China the amount is negotiable

The individuals contacted are facing up to 20 per cent levies on investment gains, and some are also subject to penalties on overdue payments, said the people, adding that the final amount is negotiable.

 

[dingyibvs]

no this is not how it is. Yes, they made money because of their own efforts but don't forget the tremendous investment that the state has put on national development for them to be even be able to extract so much wealth

Rich people always like to think themselves as gods who them alone with only their efforts deserve all that money but in reality thats not how it works when everything is taken into consideration

I don't think you understood my argument. It's implied in my statement that these wealthy folks might not have gotten wealthy or be able to keep gaining wealth elsewhere, for various factors including state support. But if they think that's not the case, then go right ahead. For many over the years, that's indeed not the case, so they're certainly not guaranteed to be wrong. It is, however, up to China to demonstrate to an increasing number of people that they are.

 

[GiantPanda]

Western MSM: But imports grew by only 4.1%? China collapse confirmed!

LoL. Yes. Surging exports of over 6% and imports still grew by over 4%. Sure fire sign of "collapse" since Gordon Chang's prediction in 2000.

With Chinese people traveling more and spending 8% more on internal tourism than even in the last pre-pandemic year, it doesn't seem like there is a lack of discretionary spending present in economies with poor confidence.

https://twitter.com/i/web/status/1843674753619636677

 

[Index]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

Well, that is just your baseless speculation on whether incentives to leave or stay will be stronger in the future. China also provides a ton of incentives to stay. High living standards, a positive environment, cultural closeness and a booming tech economy.

So far, China's rate of expatriation is among the lowest of all developed nations, especially among the upper class. A larger fraction of American, British and French upper class leave their countries than their Chinese counterparts.

Clearly, the incentives China gives are much stronger than the costs China imposes on them, so the government believes it can fleece them for a little more.

 

[FairAndUnbiased]

So, instead of moving some of their money offshore, wealthy citizens (you know, the ones who actually contribute to the economy) now have the incentive to close up shop and move themselves and the entirety of their assets overseas.

Congratulations, that is exactly how you have an exodus of 1.2 million affluent citizens underway.

If they believe that they can remain rich while never dealing with China again and if they can move assets without massive losses, sure.

Very interesting that you believe the rich are genetic instead of being created by circumstance.