China's Losing Millionaires

In recent months, millionaires and some billionaires have fled China for countries in the west, particularly the United States.

During the 2010s, China became the fastest-growing large country, quickly outcompeting its neighbors until becoming the largest economy in the world (based on GDP PPP). This economic boom saw thousands of Chinese obtaining vast amounts of wealth in a much more business-friendly climate where the CCP actively promoted private investment and the creation of Chinese wealth through its own, independent stock market.

However, following the eruption of the COVID-19, China began taking a more involved approach toward its economy as a reaction to a growing wealth cap between lower and upper class citizens. They cracked down on big business, pressured billionaire CEOs to pledge loyalty to the Communist Party or resign, and enacting crippling regulations which made business in China more difficult. Even worse, the CCP required all company transactions to be reported to the CCP for approval, angering many business owners.

The greatest example of China's crackdown of big business is Jack Ma and his company Alibaba Group, which is one of the largest corporate monopolies in the communist state. Xi Jinping and the Communist Party, fearing an extremely powerful capitalist-like class of billionaires like Jack Ma, subsequently pressured him to break up the massive Alibaba corporation and donate a large portion of his earnings to the CCP.

Many businessmen and investors soon feared continuing business in China. Along with the housing bubble which crippled the real estate industry in China, the CCP's regulatory behavior encouraged hundreds of millionaires and billionaires to leave China, some subtle and others gradually. Some transferred their wealth to gold and shipped it overseas, others laundered their wealth.

The most shocking aspect of China's millionaire exodus is that most of these wealthy businesspeople are moving to one particular state: the United States. China's own internal actions is only making them weaker and their rival, the U.S., stronger.