‘More and more people and capital are leaving China. What’s going on?’

For almost 30 years, China has been a land of promise in the eyes of the world. Every adventurous person wanted to be a part of it. The Chinese citizens themselves showed self-confidence. A shift occurred a year ago. More and more Chinese citizens want to flee their country. The pandemic has been a painful experience, and few see any benefit from President Xi Jinping’s harsh policies.

Nowhere has this fact become more evident than on the US-Mexico border. Since the beginning of this year, border guards have intercepted nearly 25,000 Chinese nationals who, along with Cubans, Venezuelans, and Guatemalans, were trying to reach the United States illegally. For the United States, China is now one of the most important countries Countries from which asylum seekers come.

Another major destination for Chinese fortune seekers is Singapore. The city-state has traditionally been home to a large Chinese diaspora. In recent years, wealthy Chinese in particular have continued to gain weight. They feel targeted by anti-corruption campaigns, frustrated by slow growth, and no longer feel safe in Hong Kong. Singapore is doing more business than ever in selling luxury homes.

Chinese immigration is not new. In the past, millions of Chinese left their motherland behind. Even at the peak of growth, about half a million Chinese were leaving their country every year. Due to the financial crisis in 2009 and the arrival of Xi Jinping, this number decreased for several years, but the outflow is now increasing again.

It is true that a population of 1.5 billion people hardly feels it when several hundred thousand of their compatriots leave. Yet the signal is clear: Chinese confidence in their country is eroding. Moreover, the wealthy and highly educated often flee. And it’s not just people who want to leave; The Chinese capital is also looking for ways out.

Chinese capital flight has never been as great as it has been in recent years. It happens every month Billions of dollarss, despite the government’s attempts to prevent this. Again, you could argue that this has no weight in a country that has accumulated trillions of dollars in cash reserves. But it remains a worrying sign. If the wealthy Chinese themselves have doubts, it seems only a matter of time before foreign investors withdraw as well. The coming years will reveal whether all this means only a temporary decline or whether China is truly no longer the promised land.