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Chinese Influence Expanding In The U.S. And The South Florida Impact

Posted: November 4, 2015

It is apparent, based upon recent publications and my personal experience in the EB-5 industry, that Chinese nationals and companies are taking a far more significant interest in the United States and, in particular, South Florida. This occurrence is in juxtaposition to the Chinese merely seeking EB-5 investors to invest in programs. In particular, several public or government-sponsored Chinese companies have proceeded to undertake projects as developers or co-developers in projects around the United States, including the following:

  1. Xinyuan Real Estate Co. Ltd.
  2. Gemdale Corporation
  3. China Cinda (HK) Asset Management Co., Ltd.
  4. China Vanke Co., Ltd.
  5. China State Construction Engineering Corporation Limited
  6. Greenland Holding Group Company Limited
  7. Global Housebuyer, Ltd.

Chinese nationals now account for the largest number of foreign students in the United States (estimated at one-third of all foreign students and climbing). In addition, based upon a recent Associated Press article and survey, the number of Chinese billionaires actually exceeds those in the United States. Furthermore, the Chinese have become major participants in luxury shopping in the United States and elsewhere around the world.

From the standpoint of South Florida, there was a recent publication in the Miami Today News that either or both Air China or EVA may actually provide a direct flight from Miami International Airport to Taipei, which would make it one of the longest flights in the world. It is hopeful that American Airlines may undertake a direct flight to mainland China as well. The potential of a direct non-stop flight to Asia should greatly expand commerce between South Florida and Asia.

As recently reported, China has modified its one child policy and is now allowing families to have two children. This policy change may have some implications on the EB-5 program given the fact that, eventually, the visa applications for Chinese nationals could expand.

Another interesting phenomenon is that Chinese nationals are becoming direct purchasers of real estate in the United States (including South Florida), both as second homes and investments. The geographic concentration of Chinese investment and relocation to the three major cities (New York, Los Angeles and San Francisco) seems to be expanding beyond those specific locations. This is evidenced by increased transportation hubs and active Chinese populations in other cities around the country, which are attracting Chinese investors and residents.

It is apparent that the Chinese influx will continue to expand its economic influence in the United States in many respects.