China recently ordered a tightening of Chinese overseas investment emigration. Some American lawyers revealed that Chinese people have changed tactics. They are reverting to applying for L1 visas to emigrate to the U.S.
In May, China released new laws tightening its control over investment emigration through notarization. The move was a way to block capital flight overseas.
Talking with Chinese-language media Da Ji Yuan, Cai Jingming, a famous immigration lawyer in Silicon Valley, noted that Chinese investors are taking alternatives.
It usually takes 6 to 7 years to handle an investment immigration application, called an EB5 visa. But about four years ago, many investment immigrants in the Bay Area reverted to the L1 visa for executives of multinational companies. If the L1 visa is processed successfully, it only takes 3 to 6 months before one can set foot in the U.S.
Cai Jingming noted that now that the epidemic has eased, a lot of people are applying for L1 visas. The Chinese elites have been awakened by the “politicized anti-epidemic” measures by the government through the lockdown. He said that this has created a live disaster for the people. The Chinese elites are not easily brainwashed.
The immigration lawyer said the L1 visa has many advantages compared to the EB5. The L1 visa only requires an investment of 300,000 to 500,000 dollars. There is no restriction on the source of funds. It also does not need minimum education and minimum wage requirements, or labor condition review.
Besides, candidates can apply for a green card after one year of getting the L1 visa. Dependents of L1 visa holders can apply to the United States Citizenship and Immigration Services (USCIS) for work authorization. They can also work independently without a sponsor.
Meanwhile, China is imposing an annual foreign exchange limit of 50,000 dollars. For this part, Cai Jingming said senior accountants and lawyers can find a solution and get the funds out in portions.
Frank Xie, a business professor at the University of South Carolina, told The Epoch Times that the Chinese government is not only curbing emigration through investment but also tightening control over Chinese citizens traveling abroad.
Beijing is now trying to cut off all possible channels for capital to flee overseas, and all channels that may consume its foreign exchange.
Prof. Frank Xie said the government will try to maintain enough foreign exchange to import food, energy, medicines, and medical products amid the Chinese economy’s continuous downturn.