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For Isaac, a Chinese business consultant in his late 20s, Xi Jinping’s stunning consolidation of power at last month’s Communist Party congress was the final straw.
The graduate of a top Beijing university, who asked not to be named further for fear of reprisals, is looking for work in the Middle East. Like most of his generation, he is an only child. His parents are “too old” to go with him, but are happy he got away at the end of the summer.
“If there is hope for change [after Xi] I will consider going back,” he said. “Until then, I’m looking for opportunities in other countries.”
Isaac is among a flock of wealthy Chinese fleeing the world’s most populous country just as Xi begins an unprecedented third five-year term in power. Some of those leaving cited the difficult business environment, others feared the direction of future government policy.
Singapore has emerged among a host of preferred destinations for wealthy Chinese as they seek a safe haven for families and assets.
According to interviews with leavers as well as lawyers, immigration experts and consultants working with wealthy Chinese, the Communist Party congress in October was a watershed in how the country’s elite viewed China’s future.
Attempting to escape, however, carries enormous personal and financial risk due to Beijing’s strict border and capital controls. Even Chinese citizens who successfully navigate the path to life abroad remain exposed to Xi’s extralegal security forces.
“They play permanently in China. If you’re going to pull the trigger on this and screw it up, that’s it. We’re talking about exit bans, confiscations, money disappearing,” said David Lesperance, a Europe-based lawyer who helps wealthy families leaving China.
While Hong Kong has been a base of operations for China’s wealthiest for generations, with many including Alibaba founder Jack Ma buying homes in the city, its facade of safety has been shattered by Beijing’s crackdown.
Wang Jue, a 35-year-old art collector and investor from Chengdu, southwest China, is among those moving some assets from Hong Kong to Singapore through a family office, a private entity used to manage the family’s wealth.
While China and Hong Kong have been hampered by strict coronavirus controls for three years, Singapore’s economic and political stability and easy capital flows made it “the best base to enter the region,” he said.
The Southeast Asian city-state has not had “riots in the streets,” Wang added, referring to anti-government protests in Hong Kong in 2019.
Camilla Jiang, a director at Prime Asia Asset Management in Singapore, said it has already set up seven Chinese family offices in the past year. She also pointed to Singapore’s cultural appeal – Chinese Singaporeans make up about three-quarters of the city-state’s population.
“We have a client who spent a year in three places. . . because of the demographics, they chose Singapore, she said. “They feel they can be a part of society.”
Ahead of the congress, many wealthy Chinese were already bracing for Xi’s increasingly authoritarian rule and sweeping crackdowns to reshape the country’s business landscape.
Lawyers and immigration experts said some wealthy Chinese clients have already executed plans to leave. These include arranging new citizenship for oneself and family members and moving capital and assets to other jurisdictions.
The wealthiest can also take advantage of immigration investment schemes offered by some countries to attract the ultra-rich, although the process can take years.
For others who misjudged the speed of change under Xi, speed is now of the essence.
Philip May, chief executive of investment migration firm EC Holdings, said the most common request from China was “a second passport, fast”.
“We are talking about a few months. It’s psychological,” he said.
Such clients often target Caribbean nations including St. Kitts and Nevis, Dominica and Antigua and Barbuda.
While wealthy Chinese have been snapping up prime assets overseas for years, Keir Waddle, head of new home sales in London for property group Strutt Parker, said there was “market talk” of a wave of Chinese buyers in the UK.
“We are seeing this interest mainly in the premium (over £5m) and super premium (over £10m) markets,” he said, adding that “the pound being so weak” was helping to attract overseas buyers.
But efforts to flush cash out of China have also come up against Beijing’s clampdown on capital outflows.
“Everyone says it’s hard to get money out of China right now. Banks are wary of large amounts of funds being transferred overseas,” said a Chinese tech entrepreneur who moved to the US in September.
“I have the funding, but my Chinese bank is taking a long time to review the transfer,” said the person, who also requested anonymity due to safety concerns.
The exodus also shined a spotlight on a murky area of legal protection afforded to Chinese nationals in other jurisdictions. Under Xi, the reach of China’s surveillance and security apparatus has expanded offshore, drawing accusations from the US and others of coercion, forced repatriation and abductions from foreign territory.
Margaret Lewis, a China expert and law professor at Seton Hall University, said pressure from Beijing to return Chinese nationals or assets is “confused” for foreign governments.
“There are real questions,” she said. “Just because there are words on paper [in China] which are called law. . . Who are you sending back? Are you sending anyone back?’
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