Bloggings on EB-5

by Staff

Increasing Number Of Chinese Investors Turning To EB-5 Program

The EB-5 program has offered citizens of other countries who wish to relocate to the United States a way to obtain green cards and fulfill their aspirations.

Here is how it works: a foreign national who invests at least five hundred thousand dollars in a commercial enterprise in the United States is eligible to receive a permanent visa (green card) through one of two paths –

  1. The individual seeking a green card may invest $500,000 in a new commercial enterprise in an area of the United States that is experiencing 150% if the national unemployment rate, and create ten jobs through the enterprise, or
  2. The individual seeking a green card may invest $1,000,000 in a commercial enterprise anywhere in the United States

These commercial enterprises are commonly referred to as regional centers. By law, at least 3,000 of the 10,000 permanent visas granted through the EB-5 program each year must be awarded through path #1 above ($500,000 investment in rural/economically depressed area).

The EB-5 program benefits wealthy immigrants who want to move to the United States, as well as Americans, since it promotes economic development and job creation.

China, with its phenomenal growth and prosperity over the last decade, has become the number one country in the world in terms of EB-5 green card applications. In 2009, there were 787 EB-5 applications from Chinese citizens, but that number more than tripled in 2011. In fact, the nearly three thousand Chinese EB-5 applications in 2011 accounted for 78% of all such applications filed worldwide that year.

Why are more and more Chinese citizens exploring this avenue to permanent residency in the United States? With all its economic growth, China still cannot not offer certain things to its citizens that can be found in other nations, such as a consistently safe food supply, world-class education, and political stability. For these reasons and others, many wealthy Chinese citizens are looking to emigrate to the U.S., Europe, Singapore, Canada, and other nations to raise their families and pursue other opportunities.

But this trend is not sitting well with some in China, particularly the Communist leadership of the country. To address the growing number of their citizens who are leaving their home country for foreign shores, Chinese leadership are taking proactive steps to respond to the concerns of their people, including cleaning up the environment, loosening the restrictions on political activism, allocating wealth more fairly, and other measures designed to increase the quality of life.

Some Chinese leaders are also warning their citizens of the risks involved in the EB-5 program, characterizing it as either a scam or unsafe investment.

Despite their efforts, there appears to be no slowdown in the number of EB-5 applications coming from China, or diminution in the desire of many Chinese citizens to immigrate to the United States. The next few decades will be an interesting time as the United States and China continue down parallel paths; the destinies of the two nations are seemingly intertwined, for better or worse.

About The Author is a site for those interested in learning more about the eb-5 visa program and potentially looking for a regional center or immigration attorney.

The opinions expressed in this article are those of the author(s) alone and should not be imputed to ILW.COM.
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