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Unprecedented Surge In Chinese Applicants Willing To Buy US Green Cards

Tyler Durden's picture




 

A few weeks ago, Canadian authorities decide to scrap its controversial 'investor' visa scheme (which had allowed waves of rich Hong Kongers and Mainland Chinese to immigrate and blow the real estate bubble ever bigger). This was met with hollers of derision from the Chinese demanding retribution. What was less well known, until now, is the massive surge in interest from wealthy Chinese in a US program offering 'investors' green cards in exchange for cash. "There is a panic being created in China," warned one immigration lawyer, with Chinese nationals now accounting for more than 80% of visas issued, compared to just 13% a decade ago. It seems the Chinese are in a hurry to get their money out.

 

 

Via CNN's Sophia Yan,

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.

 

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.

 

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.

We suspect as problems loom in the credit-stretched nation that the wealthy will increasingly look to get more money offshore... so when will the US citizenry declare this cash-for-citizenship program unpatriotic?

 

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Thu, 03/27/2014 - 21:04 | 4601061 August
August's picture

Best of all, thanks to the famously-transparent accounting standards to which successful Chinese businessmen adhere, the USA will be able to apply income tax to all of these new residents' worldwide income.

 

/s

Thu, 03/27/2014 - 21:21 | 4601111 max2205
max2205's picture

Dems better watch out. ..they vote repub......sorry Shummmmmmmmer

Thu, 03/27/2014 - 21:30 | 4601141 Boris Alatovkrap
Boris Alatovkrap's picture

Yu wan gu lin kado, wi sei lyu gu lin kado. Uu pei meini moni!

Thu, 03/27/2014 - 22:39 | 4601347 ghostfaceinvestah
ghostfaceinvestah's picture

That only applies to US Citizens, not Permanent Residents.

Fri, 03/28/2014 - 01:48 | 4601648 August
August's picture

The US income tax most definitely applies to green-card holders, regardless of their physical residence.

If a permanent resident wants to return to live in his non-US homeland, he must formally surrender his US-permanent-resident status, or he WILL be open to the same threats of back taxes, penalties, fines and imprisonment that full-fledged US citizens enjoy.

Thu, 03/27/2014 - 21:08 | 4601075 Pairadimes
Pairadimes's picture

Out of the frying pan, and into the fire.

Thu, 03/27/2014 - 21:32 | 4601144 Boris Alatovkrap
Boris Alatovkrap's picture

No fu laing pan in China, wi yuza wok!

Thu, 03/27/2014 - 21:08 | 4601079 PHantomofthemarkets
PHantomofthemarkets's picture

Every Chinese I have met or done business with comes close to very stupid and trying to rip you off.

So this doesn't surprise me.

But still they manage to outperform the west...

Thu, 03/27/2014 - 22:01 | 4601229 SilverRhino
SilverRhino's picture

OMG what would really suck is having to WORK for a Chinese national.   

FUCK THAT NOISE.

Thu, 03/27/2014 - 22:17 | 4601285 Buck Johnson
Buck Johnson's picture

They are getting out because they know the game is about over and they all know what happens when the populace gets poor from the leaders and rich land owners and businessmen, Peoples revolution.  They know that those billions will want revenge and so they will be in Vancouver and/or the US with their stolen money.  I would go to Vancouver (love the city).  The reason why the Australians want so much money is because of the Asian racism that has been in the country since the turn of the century.  They have always feared being taken over by what they call the "Yellow Menace".  But I wouldn't go to Australia, because once China's economy implodes it will take Aussie with it because of the massive resources they sell to China.

Thu, 03/27/2014 - 23:34 | 4601378 franciscopendergrass
franciscopendergrass's picture

The Yellow Menance is the only people/countries buying their fucking resources.  They want to bite the hand that feeds them.  Hypocrites.  I'll take your money but fuck you, Chinaman.

Thu, 03/27/2014 - 23:49 | 4601504 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

i work in EB-5 and have for years, live in shanghai now. chinese investors have no idea that "the game is over". the overwhelming majority are moving so that their kids can go to US schools and find jobs after they graduate. most of the men remain behind in china and continue running their businesses while the wife takes the kid (s) to the US. no one, except for a tiny select group, has any fucking idea there's a real estate or credit bubble in china, and when i mention it to our investors (ive dealt with hundreds) they laugh like im an idiot. the people at the top know what's going on. everything is so obfuscated and distorted over here that the idea that the general populace has even the slightest notion as to what is happening is ridiculous. you think the US has a lot of sheeple, come over here. you have no idea.

Thu, 03/27/2014 - 23:55 | 4601518 franciscopendergrass
franciscopendergrass's picture

Concur.  If the going is so good in China why is there so much flight in capital and people to US and other Western nations.  If things are good, capital and people stay.  Generally, people don't migrate to other countries for shittier conditions.

Thu, 03/27/2014 - 21:10 | 4601085 LetThemEatRand
LetThemEatRand's picture

Simon Black, take note.

Thu, 03/27/2014 - 21:12 | 4601089 One And Only
One And Only's picture

Walk across from Mexico FOR FREE.

I thought Asians were smart.

Thu, 03/27/2014 - 21:14 | 4601097 fonzannoon
fonzannoon's picture

where does that 500k go? Keep the fucking 10 menial jobs. Make it 5 mil (they are just printing it anyway so who gives a fuck) and start a program where the 5 mil gets put in a pot and split up amongst taxpayers.

 

Thu, 03/27/2014 - 21:20 | 4601108 LetThemEatRand
LetThemEatRand's picture

Yeah, somehow I don't the Chinese guys who are first to try to leave their own country while they still can (before their fraud is discovered) with half a mill are the A+ employers we're looking for.

Thu, 03/27/2014 - 21:18 | 4601105 jusman
jusman's picture

It's called "equalisation".  The Chinese will come to America.  The American multi-nationals go to China.  And in  a few years or decades, American standard of living will go down, and Chinese will go up and we will be a homogenous worldwide mix of poor souls abused by the psychopath puppet masters.  I am glad to have 8 years to retirement vs. the youth that have a whole lifetime ahead of them.

Thu, 03/27/2014 - 21:20 | 4601107 Kaiser Sousa
Kaiser Sousa's picture

i hate this fucking country...

we got mother fuckers living under freeway overpasses everywhere but no money for them - yet money for our creditors billionaires and ukranian fucks over yonder... but hey, the people of this country r getting exactly what they deserve...nothing will change until the MonyeChangers r hunted down like the the mangy dogs they r and their servant politicians r eleminated... meanwhile, from your banker controlled judicial system....

"NEW YORK (Reuters) - Silver investors failed to show that JPMorgan Chase & Co conspired to drive down the metal's price, and an antitrust lawsuit accusing the largest U.S. bank of price-fixing should be dismissed, a federal appeals court ruled. The 2nd U.S. Circuit Court of Appeals said the investors, who traded COMEX silver futures and options contracts, failed to show that JPMorgan violated federal antitrust and commodities laws by having distorted silver prices at their expense between 2007 and 2010.

Among the allegations were that the bank would amass huge short positions that market conditions did not justify, and make "fake" late-day trades when market volume was thin. Thursday's order upheld a March 2013 ruling by U.S. District Judge Robert Patterson, who also sits in Manhattan. Christopher Lovell, a partner at Lovell Stewart Halebian Jacobson representing the investors, did not immediately respond to requests for comment. JPMorgan spokesman Brian Marchiony declined to comment.

Investors had filed at least 43 complaints in 2010 and 2011 that accused banks of amassing hundreds of millions of dollars in illegal profit through silver price-fixing. After the lawsuits were consolidated, HSBC Holdings Plc was dropped from the case in September 2011, leaving New York-based JPMorgan as the main defendant. In Thursday's order, a three-judge 2nd Circuit panel said it could not infer from allegations that JPMorgan took large and "uneconomic" short positions in silver that the bank intended to manipulate prices, or conspired with floor brokers to do so.

"An inference of intent cannot be drawn from the mere fact that JPMorgan had a strong short position," the panel said. The Commodity Futures Trading Commission began probing silver price-fixing in 2008, and two years later proposed regulations to give it greater power to stop the practice. The case is In re: Commodity Exchange Inc Silver Futures and Options Trading Litigation, 2nd U.S. Circuit Court of Appeals, No. 13-1416."

http://www.chicagotribune.com/business/sns-rt-us-jpmorgan-silver-lawsuit...

keep stackin.......

Thu, 03/27/2014 - 21:38 | 4601164 Offthebeach
Offthebeach's picture

The rich and the poor have equal rights to sleep under overpasses.

Thu, 03/27/2014 - 23:55 | 4601517 0b1knob
0b1knob's picture

Or rather to NOT sleep.  The original quote was:

The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread.

Fri, 03/28/2014 - 08:20 | 4601960 Big Corked Boots
Big Corked Boots's picture

And it should be properly attributed to Anatoly France.

Thu, 03/27/2014 - 21:22 | 4601109 richsob
richsob's picture

They'd better cut it off or some problems are going to get as big here as they did in Vancouver.  I'm all for legit green cards to Chinese who have already been working here, got their education here, married an American, etc. but blood money?  No way.  Forget it.  Now is the perfect time for the Democrats to "get tough" on immigration and shit on the Chinese trying to come here legally so they have some (bogus) argument that they are "tough" on immigration.  Of course they'll keep welcoming all the Mexicans and Central Americans with open arms.  Hell, they even have navigators signing people up for Obamacare at the Mexican consulate in Brownsville, Texas.  No shit.  It's really happening.

Fri, 03/28/2014 - 07:10 | 4601839 andrewp111
andrewp111's picture

No way. Chinese are a purely Democratic constituency. The Democrats have the same pay-to-play attitude that perfectly meshes with the ChiComs, and the Chinese are perfectly comfortable with that. And the Democrats need big donors. Remember how Chinese dishwashers would give max contriutions to Hillary Clinton?

Thu, 03/27/2014 - 21:29 | 4601136 Seasmoke
Seasmoke's picture

OT. Bitcoin dropping faster than Gold and Silver. 

Thu, 03/27/2014 - 21:33 | 4601147 fonzannoon
fonzannoon's picture

I'm not watching but I don't believe you

Thu, 03/27/2014 - 21:38 | 4601165 Seasmoke
Seasmoke's picture

Just went below $500. 

Thu, 03/27/2014 - 22:11 | 4601257 Jack Burton
Jack Burton's picture

Fuck'n 'ell. Rats and sinking ship, all the fraudsters running to America.

Thu, 03/27/2014 - 22:31 | 4601312 Son of Captain Nemo
Son of Captain Nemo's picture

JB

You can't even begin to make this shit up.  Where the hell is the "release valve" on each and every American getting bung-holed by their own politician in D.C.?

Like Turkey's "9/11 story with Erdogan" earlier today, absolutely no news coverage on it by the MSM and should ANYONE IN THE COUNTRY even be looking at a syndicated news organization(s) at this stage after the damage they have inflicted on their own professional reputations knowing what we already know and why everyone should already be HERE by now instead???

In case anyone is interested....

https://waveofaction.org/job/col-harry-riley-washington-d-c-solutions-op...

 

 

Thu, 03/27/2014 - 22:43 | 4601357 Jack Burton
Jack Burton's picture

I wish I had more free time Captain. I would love to document the US media's news black outs. Today the parliament in Kiev was surrounded by 2,000 fascists demanding the government security officer resign and threatening to storm the Rada. CNN-Nothing, NPR-nothing. American media is now more known for covering up news than covering it. Orwellian in every sense.

Thu, 03/27/2014 - 22:47 | 4601366 franciscopendergrass
franciscopendergrass's picture

You want people to question their masters?  Sociopaths don't want their actions critiqued nor questioned.  Americans don't care.  90% of Americans don't even know who Erdogan is (i'm being generous) and let alone pronounce his name (possible answer for typical American "isn't that Viggo Mortensen's character from Lord of the Rings?").

Thu, 03/27/2014 - 22:13 | 4601272 Son of Captain Nemo
Son of Captain Nemo's picture

More bribes and extortion for the wayward Chinese and Indians as the American politician holds vigil to continue gutting the American economy...  Speaks volumes to the loyalty of their own sovereign homeland, even when the U.S. threatens them militarily like Russia with Ukraine in their own backyard.

This may sound a bit racist but what would you expect from two Countries that collectively house close to 3 billion men, women and children?...  They may think differently if the folks back home decide a new direction with the BRICS and the potential for a war gets underway courtesy of their North American hosts!

Having said this, I'm not at all surprised... And what makes it much worse is the American sheep don't even care enough to make it an issue just like the Indians that comprise nearly 70% and growing of the commercial technology workforce sector in software development and white collar support in American telecommunications.  They pretty much own the store.

Thu, 03/27/2014 - 22:53 | 4601353 franciscopendergrass
franciscopendergrass's picture

Americans don't care.  why would Americans want a good paying job?  this would make them ineligible for food stamps.  there are 47 million of these muthafuckers.  the umbilical cord of the state is one reason why americans are lazy/refuse to work.

Thu, 03/27/2014 - 22:38 | 4601336 franciscopendergrass
franciscopendergrass's picture

That's easy.  Pay $500,000, buy/rent commercial real estate (which is bargain these days because the only businesses that are operating are huge corporations i.e., WalMart, Subway, MacDonalds, Target etc. Man, I see so many empty retail stores. If you want to start a business, fuck you.  No government incentives and good luck understanding labor and tax laws.), start a massage parlor, hire 10 female asians willing to have sex and/or give handjobs to horny men.  If you want to start a morally cleaner business, open a nail salon.  I guess we will see a lot of businesses with only 10 people hired.  Thanks US government, small business will only have 10-50 people.  (10 to start the business for a visa and less than 50 to escape Obamacare).

Thu, 03/27/2014 - 22:42 | 4601351 ghostfaceinvestah
ghostfaceinvestah's picture

BTW, if you want to know why Flaherty resigned - death threats.  Canada's next Finance Minister will reverse his decision.

Thu, 03/27/2014 - 23:50 | 4601510 laomei
laomei's picture

The vast majority of them have approximately zero intention of living in the US.  It's a part of a wonderful scam over here actually.

They don't apply on their own, they go through agents who promise them the moon and the stars in return for a 25% service fee.  Thanks to dolts like these, you hear hilarious "facts" about the US.

Free Education - Yep, so many actually believe that if you are holding a US pssport, you get to go to college for free

Free Healthcare - They see medicare and tricare and for whatever reason think it will apply to them

Unemployment Money - They have zero clue how it works, they just assume it's the same as here, where if you pay into the system you get it automatically... ditto for food stamps

Cheap cars - They tend to forget about the fees and HOW MUCH driving is required on a daily basis to get from point A to point B

Cheap housing - They fall for US "standards" of what is a "safe place" to live.  

Land land land - See a mansion out in the middle of nowhere and are told it's only $400k and everyone in america lives like that.  What they are not told is that it's 100 miles from civilization, there are no mineral rights and taxes will eat them alive.  Most end up crammed in a city apartment not really all that much larger than the ones they left behind... or suburbia that leaves them with an hour-long commute.

US protection - This is the biggie, they think that they can land a passport then come back to China and be under us protection no matter what.  Unfortunately, China sees this as insignificant and will treat them just the same and the US government can't do anything about it, they even admit as much if you ask them.

Fri, 03/28/2014 - 00:53 | 4601595 Leraconteur
Leraconteur's picture

Wrong. I consult these people.

Short version; You don't want them in your nation. They bring money, yes. They also bring an amorality that you don't want. Ever. They lie cheat and steal beyond anything you can conceptualise. They are horrible human beings.

The son or daughter will be someone from a small city but the family bought a Big City ID. Shanghai (very hard to get), Beijing (easier), Tianjin (easy) or Shenzhen perhaps. They have that Big City local ID, but mom and dad are in fact low-level Party Officials or former/retired SOE or local big business executives in the small town. Grandfather retires with millions of US dollars equivalent in RRE ($1-5million), cash and other ill-gotten gains. He lives in the small town where the business was, the party membership was located.

It's all corrupt blood money every single Yuan.

The offspring, grandchild, goes to Beijing and local schools, a mix to not piss off the Big City officials as well as take photo ops in the fields surrounding the small town grandather lives in (in a top floor, 300m2 apartment that is top-line rich for that area, with 2 autos with his daughter/son in the identical apartment on the floor beneath him) so that he appears poor and down and out to USA/CA university school boards.

Grandfather buys a house, cash, for his gnandson to live in whilst he goes to school.

The family pays another student, gets a 3rd or 4th fake ID, and has that student sit for grandson's China exams to USA schools. Those exams are taken in Beijing. Grandson has an apt in Beijing, using the bought Beijing ID, but the person who sits is a ringer with grandson's ID info on the fake ID. The actual grandson is a retard or a lazy piece of shit who does nothing ever.

He 'passes' the exams, then attends an 'easy school' like U of A (where the hot white chicks are). The school will have an extant population of mainland Chinese students what the grandson can pay off for easy grades.

When he graduates with his purchased credentials he applies for citizenship/residency in the USA.

Once he gets a green card he then brings the entire extended family to that big house grandpa bought.

His sister will bring 'her cousin', her future husband.

...and that's how it is done.

This is a CCP money-laundering scheme, nothing else. Canada and now the USA are complicit.

BTW...he pockets 2/3rds of the money given to him for any 'tutoring' and discharges the tutor after a week. He doesn't want to improve his knowledge in the field, he just wants to talk about Canada.

Fri, 03/28/2014 - 01:42 | 4601645 SilverRhino
SilverRhino's picture

Damn how do you tolerate them long enough to take their money??  Serious question btw.

Fri, 03/28/2014 - 02:13 | 4601658 russwinter
russwinter's picture

Chinese rat lines, coming to a gated community near you. 

Fri, 03/28/2014 - 05:37 | 4601773 Global Observer
Global Observer's picture

Looks like the Chinese are desperate to buy whatever their US$ will buy them, before they become worthless. But their choice of US greencards makes their judgment extremely suspect. But who knows? They are probably preparing to unleash their enterpreneurial skills in the post-collapse USA!

Fri, 03/28/2014 - 06:02 | 4601787 syntaxterror
syntaxterror's picture

The competition is the Free Shit Army. My money is on the Peoples Red Army.

Fri, 03/28/2014 - 06:00 | 4601784 syntaxterror
syntaxterror's picture

Ho Lee Fuk, nice to meet you. Could I interest you in some FaceFuck stock? Or some Tweeter? Sum Ting Wong? Yes you. Step right up. We Tu high?

Indeed.

Fri, 03/28/2014 - 06:25 | 4601799 ohBehave
ohBehave's picture

I welcome all productive citizens (or at least, citizens who actually bring something to the table).

Why in the world would we limit the entrance of ANY persons who are willing to bring $500,000 and/or jobs IN to our country???

Open the flood gates!

The first generation of immigrants will be wonderful, I just hope that their kids don't get too Americanized! (in the modern sense of the word... you know, majoring in Men's Issues, or Women's studies, Social Work etc.)

Fri, 03/28/2014 - 07:00 | 4601831 andrewp111
andrewp111's picture

A 10,000 application limit just proves again that the early bird gets the worm.

Fri, 03/28/2014 - 07:02 | 4601834 22winmag
22winmag's picture

Make profits from slave labor camps posing as "factories" and "jobs".

 

Spend said profits in America.

Fri, 03/28/2014 - 13:45 | 4603078 earleflorida
earleflorida's picture

they'll all end up on the "ROC" ?

china will politely ask for their accounts to be frozen, with assets sent back to the mainland

... a of course they(?) will be labelled economic/ financial traitors/ saboteur's of the CPC via the "Mao Doctrine" 

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