I can't live in a country like this anymore!
Good work, everyone. I'm Ayame from Personality.
In 2022, many Chinese entrepreneurs will temporarily or permanently move abroad.
The word RUNSHUE, which means to think of a way to escape from China, has become one of the top online catchphrases of the year.
And it seems that Japan was also included in their move.
Why did the Chinese start moving abroad?
Let's explain in detail why this time.
The number of people fleeing from China has increased.
The reason why the Chinese moved abroad was that the authoritarian government had carried out strict measures against the private sector.
The wealthy, who support the Chinese economy, tried to evacuate their assets and businesses to safe places.
Singapore is a particularly popular place to move.
In addition, there were many people who moved to Dubai, Malta, London, New York, Japan, etc.
Currently, China's economic growth is at its lowest level in the past few decades.
Many of them still have wounds from the past few years.
The Chinese leadership targeted the largest private companies in Japan, and ridiculed the well-known entrepreneurs.
They destroyed the entire industry with virtual regulations.
When many companies were struggling, they refused to negotiate a new coronavirus measure.
Later, the government's policy and policy were more business-oriented.
Many of the entrepreneurs lost their profits and assets.
Their trust in the Chinese leadership did not return easily.
They now live in a country where they do not feel threatened.
They are eager to put themselves and their businesses under the control of the Chinese Communist Party again.
When I talked to them in Asia and the United States,
many of them said that they would not return unless the government followed the same laws as the citizens.
The reason why Singapore is so popular as a place to move is that about 3 out of 4 people are Chinese and speak Peking Dialect.
Singapore is also a global environment that is advantageous for companies, and above all, I like the fact that the rule of law is maintained.
It is the founder of Pionex, a cryptocurrency trading company, Chen Yong, who says that Singapore does not strictly restrict industry and companies beyond the framework of the law.
In 2021, he moved from Beijing to Singapore and pointed out that Singapore's policy is sustainable.
By the way, Hong Kong has been enthusiastic about recruiting people like them recently, but there are few Chinese who respond to them.
Hong Kong has been in power for decades from China, and it has played a role as a safe evacuation center for entrepreneurs in mainland China, but what the hell is going on?
In fact, in 2020, the Chinese government introduced the National Security and Maintenance Act in Hong Kong, and as a result, the rule of law collapsed.
The same law has led to the suppression of assets, the arrest of activists, the rewriting of the school education system, and the risk of the independence of the rule of law.
Chen, who says that entrepreneurs choosing to move to Singapore is the same as choosing to leave China.
For those who have made such a choice, Hong Kong is no longer attractive.
Thus, Singapore is a powerful rival of Hong Kong as a place where Chinese rich people store their wealth.
Four of the top ten rich people in Singapore, listed on Forbes' list of billionaires in the U.S. economy, were immigrants from China.
As an elite Chinese entrepreneur moved to Singapore, the living costs in Singapore were high.
According to a real estate portal site, the average rent of a condominium of about 1,000 square feet and about 92 square meters was about $3,500 a month at the end of September 2022.
This is more than 20% increase from the beginning of 2022.
In Singapore, the ownership of a car is allowed, but the license fee required for ownership has increased by about 40% in 2022.
In addition, Singapore is a place where companies in mainland China compete with Hong Kong as a place to register other companies for global business development.
It is said that there are many entrepreneurs who want to build a global brand by naming Singapore companies.
In addition, as the intellectual tension between the U.S. and China increases, it also rises as a presence like an interference zone.
It is thought that Singapore has an attractive passport because it has a good relationship with the U.S. and China.
Governments around the world are increasingly wary of the influence of the Chinese government on Chinese companies.
Many governments want to know whether Chinese companies are safely storing their personal data, and whether investment by Chinese companies will affect national security insurance.
As a result of careful consideration, some entrepreneurs in China are seeking passports from other countries and certificates from other countries.
If China invaded Taiwan and started a war in Ukraine, and Russia and its companies were subjected to sanctions,
some people were afraid that Chinese passports would put them in a weak position.
However, entrepreneurs who immigrated to Singapore recognized that there was a limit to the same country.
The same country, which has problems such as the narrow country, high living costs, and the thin layer of human resources,
is not an ideal place to start an ambitious high-tech company, for example, even if it is good for enjoying life.
On the other hand, China is a huge market with excellent infrastructure, a world-class supply chain, and a rich supply of programmers who do not try to leave their jobs.
If the situation were different, almost everyone would have wanted to stay in China.
In fact, most of them still maintain part of their business in China.
However, there is no sign that they are in a hurry to return to China, increase their investments, or start a new business.
That is because they are betrayed by the Chinese government.
And there are not as many immigrants as in Singapore, but there are many immigrants to Japan.
The reason is that for the Chinese middle class, who are doing business in China, Tokyo, which is close to Shanghai, is attractive.
No matter what happens, they can fly in about three hours, and there is almost no time difference.
In addition, the upper middle class, which is not so rich, has increased their movement to move to Japan with their families from the big cities of China.
It seems that they often come to Japan under the framework of business management visas and high-level human resources, which are the main conditions for spending more than 5 million yen on business in Japan.
Since April 2022, when the lockdown began in Shanghai, inquiries from Chinese people about moving to Japan have increased.
On the other hand, in terms of technology, human resources, international affairs, and study abroad, the increase is small.
New immigrants are more active in terms of work than before, and I heard that the expected stay period is also extended.
According to Mr. Ou, it seems that the majority of people in Shanghai and Beijing are in their late 30s to 50s.
The rate of natural increase is the difference between mortality and birth rate, and if the birth rate is below the mortality rate, it will be minus, and the population will decrease.
The rate of natural increase in China has been decreasing since 2017, and we can see that it has advanced rapidly in the population-decreasing society in the past few years.
In addition, the total number of special birth rates, which indicates the number of children a woman gives birth in a lifetime, has also continued to decline, and the total number of special birth rates in 2021 was 1.15.
In 2010, the number of special birth rates decreased significantly from 1.64 to 1.37 in Japan.
In July 2022, the United Nations announced the 2022 version of the World Population Index.
Among them, the total number of special birth rates in China continues to be below 1.4 until 2050.
The Xi Jinping administration, which has intensified the sense of crisis due to the expected increase in birth rates, abolished the one-child policy at the end of 2015,
and adopted the two-child policy, and in July 2021, it launched a policy that recognizes up to three people.
As a result of these three-time restrictions, the birth rate of the second child in 2016 was 1,015,000, 33.0% increase in the previous year.
It can be said that the abolition of the one-child policy has given a certain result because it is more than the first child.
However, the effect did not last long.
Since 2017, the birth rate of the second child has decreased, and the percentage of births has also decreased.
It is clear that the effect of the abolition of the one-child policy has disappeared because there is no fact that the birth rate of women has decreased significantly from 2013 to 2021.
Therefore, in July 2021, the government switched from the one-child policy to a policy that recognizes birth rates.
In order to maintain human capital and domestic demand to support the economic development of high-quality food,
it said that a review of the one-child policy was necessary, and in response to the various needs of the people,
it said that it would solve the problems related to marriage, birth, childcare, and education.
One of the policies is to provide subsidies for families with children.
As a result of providing 500 yen a month for childcare subsidies for one child up to the age of three in 2021,
the birth rate increased by 1.62% in the previous year,
and the second child increased by 5.6% and the third child increased by 168.4%.
In 2021, the government provided a total of 950,000 yen in subsidies,
and in 2022, it expanded this to about 10 times that of 10 million yen.
In addition, there are also cities that provide subsidies for housing purchases for multi-ethnic groups.
The Ministry of Construction and Manufacturing said that if a family with two children purchased a new house,
they would provide subsidies of 300 yen per square meter and 50,000 yen at the top and bottom.
However, it is seen that such subsidies do not have enough impact to stimulate the desire to give birth,
and it is not a decision to stop commercialization.
Subsidies for childcare, which are limited in terms of cost and payment period, are not enough to stimulate the desire to give birth.
However, the subsidy for childcare is 6,000 yen per year, which is not small at all,
but it does not alleviate the anxiety of the family about how to cover the educational cost of 627,000 yen,
which is said to take until graduation from university.
And subsidies for housing purchases are still insufficient.
The subsidies provided by the Ministry of Construction and Manufacturing are up to 100,000 yen, which is not small at all,
but this is not only the amount of money to slightly reduce the burden of housing loans,
but it is difficult to say that there is an impact that will be a certain backup.
The total number of special births in Shanghai in 2022 is 1.12 in Tokyo,
and the city's subsidization is serious, such as a large number in 2021.
While urbanization and urbanization are progressing,
the cost of housing and education is increasing,
so it is expected that China's subsidization will accelerate further.
In addition, it is not a good story for China, the second largest economy in the world,
that the economy is stagnant due to the aging population and welfare services are being suppressed.
China's current production age population is 16 to 59 years old,
and it has a population of about 8.75 billion people, which is 60% of the population.
According to the statistics released by the government in 2021,
this figure is expected to decrease by nearly 35 million in the next five years.
Experts expect that China will be below the United States in all population indicators and economic growth from 2031 to 2035.
China's average age is currently 38 years old,
but if the aging population continues to increase,
the labor population in China will not be able to support the people who have retired.
In China, the number of pensioners has already exceeded the number of burdened people,
and since 2014, the amount of money accumulated for pension funds managed by each province has decreased.
Therefore, in 2018, the Chinese government introduced a system to re-establish the payment system from the wealthy provinces such as Kanton Province to Akajino Province.
However, in a report released by the Chinese Academy of Social Sciences in 2019,
it is seen that the main pension fund of this country will expire by 2035 due to the reduction in the labor population.
The deflation and real estate bubble collapse
In October 2023, the China National Bureau of Statistics announced that the CPI, which had a 0.1% increase in August after a minus for the first time in two years and five months in July, was doubled in September.
In the market, the Chinese economy is concerned about falling into a deflation,
and the government is in a hurry to strengthen economic measures.
The background is the deepening of real estate poverty, such as China's large group of real estate owners and the financial problems of the decline in real estate.
Real estate-related areas also have an asset of about 30% of GDP,
and the negative impact on the economy is great,
but due to the decline in prices and the decrease in housing sales, the managerial strength of the developers has decreased,
and the real estate bubble has collapsed, increasing the risk of debt inflation.
In addition, due to the decline in land and urban areas, the local economy is also deteriorating.
It has become difficult for the local government to implement economic stimulus measures such as infrastructure investment.
In addition, during the long-term zero corona period, many young people left work due to the decline in sales.
In May 2023, the unemployment rate of 16 to 24-year-olds living in urban areas in China was 20.8%.
This was the worst number since 2018, when records can be confirmed.
China's reaction
China is experiencing a decline in sales more than Japan, and the zero corona policy is too long.
I can't read the government's movements, and the unemployment rate is high.
On top of that, there is a risk that a war may begin, so there are few people and companies trying to invest.
It seems that the salary of civil servants has already been reduced by about 20% to 40%.
It's a level that can't be imagined in Japan.
There are no new properties in Shanghai, but there are about 500,000 used properties.
There are so many used properties that they can't be made new.
The real estate industry is pretty bad, isn't it?
Even if you leave the university, you can't find a job.
It seems that there are people who make Uber Eats their main business.
It seems that foreign companies are moving to Vietnam more and more and there is really no job.
My friend is also considering moving to Japan.
I can't say that I'm unprofitable, so I'm still going to do my best in China.
To be honest, I'm worried about my future.
Summary
China's economy has grown thanks to human resources tactics.
However, the population is already out of India, and there is no prospect of increasing population in the future.
And the real estate industry, which is said to account for about 30% of GDP, has collapsed due to the collapse of the bubble.
The withdrawal of foreign companies is also noticeable.
Even so, it may be possible to hold out for a few years, but if you look at it in the long span of 10 to 20 years in the future, there is a high possibility that China will decline.
In such a situation, how should the Japanese deal with the Chinese who are moving to Japan?
Will Japan actively accept such Chinese people while taking advantage of its own comparative advantage?
Or will Japan simply leave it as it has done for foreign immigrants so far?
In any case, it seems that it is necessary to understand the reality of China's new immigrants first.
How was it?
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