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China Sets Sights on Japan: The Unlikely Haven for Drying Up Overseas Wealth

China Sets Sights on Japan: The Unlikely Haven for Drying Up Overseas Wealth

September 6, 2024 Catherine Williams - Chief Editor News

Chinese Intellectuals Flock ‌to‍ Japan Amid⁣ Rising Tensions and Economic Uncertainty

Students, lawyers, and others gathered at Central Tokyo University to ‍attend a Chinese journalist’s lecture on Taiwan‌ and democracy, topics that are ⁢taboo in China.

This journalist‌ is one of​ thousands of Chinese intellectuals, investors, and others who have moved to Japan in recent years, driven by various reasons, including economic opportunities and ‌personal freedoms.

Chinese immigrants are⁢ settling worldwide, from entrepreneurs in Mexico to students in Thailand, but those who choose Japan tend to be wealthy‍ or highly educated, ⁢drawn by⁢ the country’s comfortable lifestyle, rich culture, and favorable immigration policies.

Why Japan?

Xia, a Chinese immigrant, initially planned to ⁣move to the United States but chose ⁤Japan instead due to the country’s more flexible immigration policy​ and the challenges of obtaining a US visa.

“In the United States, illegal immigration is particularly controversial,”⁣ Xia said. ‌”When⁢ I‌ went‌ to Japan, I saw that their ⁤immigration policy was much more⁢ flexible⁣ than mine in the United States.”

Japan’s Shift in Immigration Policy

Tokyo has softened its stance on immigration over the past decade,‌ driven by declining birth rates and an aging population. Foreigners now make up about‍ 2% of​ Japan’s population, a ratio expected to increase to 12% by 2070.

Chinese ‌nationals​ make up ⁣the‌ largest‌ number of new‌ arrivals in Japan, with 822,000​ settling in the country⁣ last⁣ year, according to official data.

The Exodus from China

The 2022 lockdown ⁣under China’s ⁢”Zero⁤ Covid” policy led to ‌an exodus of many⁣ younger or⁣ wealthier⁢ citizens. A ​report by⁣ Henley & Partners found that 14,000 billionaires left China last year, with Japan being a popular destination.

“The main driver is concern about the security‌ of their assets in China or Hong Kong,” said Edur Wang, a professor of Asian studies at Rowan University.

Investment Opportunities in Japan

A weak yen ⁢makes⁤ buying real estate and other local assets in Japan a bargain. While Japan’s ‌economy is in recession, the once-booming Chinese ⁣economy has stagnated, and the real estate sector is in crisis.

Internet entrepreneurs, including billionaire Jack Ma,‍ have left ​China after ⁤a crackdown on the tech industry and have settled in Japan, with some areas in Tokyo being dubbed “Chinatowns” or⁣ “digital Chinatowns.”

Japan’s ⁤Efforts to Attract Foreign Talent

Japanese Prime Minister⁤ Fumio Kishida announced efforts to ease Japan’s‌ strict immigration restrictions earlier this year, stating, “It ⁣is very important that‍ Japan becomes an attractive country for foreign talent to choose ‌to work here.”

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