China and the United States have the two largest economies in the world. China have had great successes exporting mobile phone devices and various other technologies and have produced arguably some of the most intelligent people on the planet, while the United States have triumphed in areas such as food and beverage, petroleum products and the film industry. However, although both nations have exceptionally strong credentials, this does open the door to many hurdles in the quest for stability.
Instigated by former President Donald Trump, there has been tension between the two since 2018, according to the Financial Times, when Trump claimed there was unfairness in the previous trade agreements, including intellectual property theft and a lack of market access for American companies in China, prompting a trade war. Although a stable life in the states is possible with a tension fuelled trade war, there are certain elements of the UK that are more attractive to Chinese high net worths (HNWs) during this time, for example housing.
The continued rift between the two, is informing the thinking of HNW residents within China interested in citizenship elsewhere. According to Emerging Communications, a Chinese marketing consultancy and planning company, the UK, and London in particular, is the primary choice for HNWs to reside due to the stable and well-regulated housing market that “offers good returns, plus high yield from rent.” Moreover, the single biggest driver of residential buying interest for the Chinese is studying abroad and living close to their children whilst they do so.
According to a Chinese marketing company named Juwai, some 83% of HNW individuals decide to educate their children overseas, with the UK being the most popular and increasing its lead each year. Domenica Di Lieto – chief executive of Emerging Communications, told Property Investor Today that “the US trade war with China along with visa restrictions, has seen Chinese student enrolments in America plummet in favour of UK universities. But other formerly popular countries for study have damaging disputes with China, Canada, New Zealand and Australia have worsening relations, which have seen student numbers diverted towards the UK.”
As the vaccine rollout here in the UK resonates with foreign investors and those wishing to move, the UK will continue to be appealing for those wishing to reside here and then also buy properties. Healthcare, education and political stability looking to be the main reasons to move, according to Shard Capital. Talk to us to find out more about starting your Tier 1 Investor Visa journey!