Well, if the Chinese government was under the impression that creating a wealthy capitalist class would serve the future of China, I hope they have noted that ‘Close to two-thirds (60%) of wealthy Chinese with assets of RMB 10m ($1.53m) or more are either considering emigration through investment overseas or have already done so (China Merchants Bank/Bain & Co). Further, the tendency to move abroad moves in line with wealth levels meaning the wealthiest group are the most inclined to emigrate. Of those with assets of more than RMB 100m for example, close to half (47%) are considering leaving while almost one-third (27%) have done so already’ (Ledbury Research’s High Net Worth, July/August 2011). Perhaps that’s why, as Reuters reports, they are cutting taxes on luxury items.
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