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China Worries about the Outflow of Wealth

Regarding the recent 2011 China Private Wealth Report, which notes the trend of wealthy people’s investments emigrating overseas, follow-up debates have appeared in some local newspapers. An article in Jinan Times, which is based in Shangdong Province, expressed the deep concern that China is losing wealth as well as talent. The author suggested four solutions to the problem: 1) Improve the implementation of laws that will truly protect private property; 2) Improve the tax system to ensure fairness and justice; 3) Repair the relationship between the general public and the wealthy; 4) Break industrial monopolies and introduce more investment channels. In another article in Shenzhen Economic Daily based in Guangdong Province, the author expresses several concerns regarding the trend: 1) It will be a drain on national wealth; 2) An outflow of wealth will dampen the demand for the service industry; 3) The trend will result in less investment in real estate, a further blow to the already shaky sector; 4) There is no clear and convenient solution to this problem.

Source: China Review News, April 24, 2011