What time is it there? Tips on scheduling when doing business with China

I have been living in Beijing for over four years now. To this day, probably the most frequent question I get on phone calls with the U.S.A. is “So – what time is it there?” I sometimes find it amusing that people can’t figure it out, particularly with people that I communicate with on a regular basis (“It’s the same time as it was the last week!!!).

Having said that, I was reminded this week while traveling to Monaco for a conference of how difficult juggling international phone calls and virtual meetings can be. I found that Monaco is 6 hours behind Beijing time. I had to keep that in mind during the conference as I needed to coordinate with my team in Beijing. On top of that, I had to schedule a few calls with the U.S., which typically is 12 hours behind me in Beijing. Since I was in Monaco, though, I had to readjust as Eastern Standard time is 6 hours behind Monaco. Things could’ve really gotten ugly if I had to coordinate with someone in LA or even Dallas, all of which are on different time zones, of course.

To make sure you keep things straight when talking to China and don’t miss a meeting because of a time mix up, here are some quick tips:

1. Google It – Simple and easy. Literally just google “What is the current time in {insert city here}.” You will always get the actual current time reliably. ‘Nough said.

2. Check for Daylight Savings Time Observations – Even though Google can be your best friend at the moment, its always good to plan ahead and know about when times are going to change. It’s pretty interesting to see which countries observe daylight savings time and which don’t. I always have to keep in mind that when I’m communicating with the U.S., from March 8 to November 1 I am 12 hours (EST) ahead in Beijing, but from November 1 to March 8 I am 13 hours ahead. Each country is different, though, which makes it more complicated. Some observe it, some don’t, and each country is on its own schedule. For a complete list, check on Wikipedia.

3. Use clear language and time indicators when scheduling emails – I cannot tell you how many times I’ve been burned on this one. Countless times I’ve been on the line waiting for someone to jump on that never comes, only to get an email the next day from the person I had a meeting scheduled with say “Oh, jeez, I’m sorry I thought you meant 10AM EST…” Tired of getting burned on this, I now always make sure to include in each email a very clear, all CAPS indication of time for each person on the call and specify the date depending on the time. For example:

“Mr. Johnson,

We are confirmed to have me call you on your office phone, (999) 999-9999 at the following time:

NEW YORK TIME: OCTOBER 25, 2015 at 8PM

BEIJING TIME: OCTOBER 26, 2015 at 8AM

Looking forward to our discussion.

Sincerely,

Dan Redford

Phone: 999-000-0000

Make sure to always leave both persons’ phone numbers in case there is any confusion.

4. Bonus Points: E-Calendar confirmation – Whenever possible, make sure to send an e-invite to the person and have him/her or his/her secretary confirm the invitation. That way, it syncs with both calendars according to each person’s respective calendar in his/her respective time zone. The one I use is the gmail calendar, but you can adjust depending on your preferences.

5. Save money: Use Facetime or Skype – We live in the 21st century, people. International calls can be expensive. If you are having a two or even three way call, Facetime or Skype can be a great way to carry out your conversation free of charge. Note: I did not mention Google Hangouts here because unfortunately Google is still blocked, and hosting a google hangout in China is not very reliable.

Obviously, this is not an end all solution as it is highly dependent on having a stable Wifi connection. Still, particularly if you are having frequent calls, you would do well to get in the habit (or getting the person on the other end of the call to get in the habit) of using Facetime or Skype. It saves a lot of money and is way more hip. As I say in the example in number 3, make sure to leave both phone numbers as a back up.

 

Good luck!

 

 

 

 

 

Three Emerging Trends of Chinese Tourists

September 12, 2015

airplane-takeoff

The word is out: Chinese tourists are coming for you! Over the last decade, outbound trips from China have increased substantially. In 2014, Chinese tourists made over 67.5 million trips abroad. We should expect these trends to only increase as China’s wealthy have by now already developed a strong need to explore new places to sightsee and park their cash. Here are three trends for you to be aware of to stay ahead of the “China Tourism Wave.”

  1. CHINESE TRAVEL TO CITIES

According to a report by Oxford Economic and International Hotels Group, blog585% of Chinese travelers prefer traveling to big cities.

 

2. CHINESE TRAVELERS MOVE TOWARDS INDIVIDUAL TRAVEL

No matter where you are from, you’ve probably at one time or another encountered a large Chinese tour group: lots of Chinese in a pack taking pictures, walking around confused, with a tour guide carrying a little flag on top of a long, skinny pole.

But Chinese travelers are starting to change, move away from the pack mentality and more towards traveling with their immediate family or by themselves.

Why is this happening? In part, it is because with new wealth and education, Chinese are able to navigate trips by themselves. They no longer have to depend as much on travel agencies or group travel packages.

What’s more, Chinese travelers are often economic travelers in the sense that they really know what they want to BUY before leaving home and know where they can buy it. Chinese are largely going abroad in search of luxury goods that they cannot get at home, like jewelry, antiques, or designer clothes, or perhaps going to buy discounted tech products that are way more expensive at home. They follow big brands like Louis Vuitton and Michael Kors, and they tend to go to the biggest, best places that they can buy them.

3. DOMESTIC SERVICE PROVIDERS DOMINATE

Chinese service providers are responding to and cashing in on these trends. In terms of travel booking, travelers are now mostly going to online travel booking sites. The two that dominate the China market are Qunar.com and Ctrip.com. It is clear that more Chinese travelers are using these platforms to increase the bookings.

Domestic hospitality and airline companies are also investing significantly in building full-service platforms in foreign countries frequented by Chinese travelers. In the aviation industry, many Chinese domestic airlines like Air China and China Eastern has already started operating directed flights from multiple cities in China to a variety of cities in North America like Los Angeles, Las Vegas, New York, and Houston.

One big company to watch out for in this space is Hainan Airlines (HNA Group). HNA is a monster in the airline and hospitality industry, and they are becoming one of the biggest players in terms of providing “go-abroad” services for the Chinese traveler. They have already begun operating direct flights to Seattle, and earlier this year started a direct flight to San Jose. On the hospitality side, the company is looking to make acquisitions and joint-ventures with foreign hospitality management companies. In June, HNA acquired 15% of North America’s Red Lion Hotels Corporation, and seem poised for more.

If you’re looking to attract more Chinese tourism dollars to your business or community, it would be smart to look at partnering with some of these domestic service providers.

 

 

Expats in China Turn to Entrepreneurship

After a recent spate of travel to Shanghai, Guangzhou, and back to Beijing, I was blown away by the number of my foreign friends and colleagues that have gone the route of entrepreneurship. Some are doing it out of necessity or desperation, while others are pursuing passions or unique talents. These friends, along with recently beginning my own entrepreneurial venture, inspired me to write this piece in China US Focus:

Expats in China Turn to Entrepreneurship

(originally published in China U.S. Focus)

Recently, the apparent exodus of expats from China has surfaced as a popular topic for international news outlets and social media. In February, a study by UniGroup Relocation cited by the Wall Street Journal indicated that twice as many expats left China last year than moved in. Indeed, China can be a tough place to live. Overcrowded cities, slow Internet speeds with frequent interruptions, and choking air pollution are enough to make even the toughest expat consider moving out.

Yet, this is only part of the story. While many highly paid expat executives and specialized workers are leaving in droves, a new generation of adaptable, entrepreneurial expats is emerging to replace them. The implementation of certain new Chinese policies, such as the launch of the Shanghai Free Trade Zone, indicate that the Chinese government is very motivated to create a smoother runway for foreign talent to contribute to the country’s innovation drive.

Facing a Challenging Job Market

After China’s economy opened up in 1978, and throughout the 1980s and 1990s, large corporations looking to take advantage of low labor costs and high productivity in the Chinese market dominated Western presence in China. The expats of those days were mostly company managers coaxed into moving to China to oversee the operation for an extended period by higher-than-average salaries, stellar benefits, and typically an end date for their term of service.

As China has changed, so have the dynamics and demographics of expats in China. More Americans started picking up Chinese in college in the 2000s, and slowly Americans have started coming to live in China for further studies, teaching English, or pursuing other work experience. Around the time of the 2008 Beijing Olympics, it seemed to many college grads that moving to China would be a faster jump-start to their careers compared to entry-level jobs at home.

Today, that is less true. Working in China for a foreigner has become even more challenging. For starters, Beijing and Shanghai are expensive; by many rankings, both cities are among the top 10 most expensive cities to live in the world. That does not bode well for young college grads. Moreover, good jobs for expats appear to be harder and harder to come by. Foreign companies that have been in China for some time now are seeing their tax-free incentive packages mature, and profit margins are going down. Thus, they are less willing to offer higher priced expat packages. On top of that, local Chinese talent educated in the West is increasingly available, and in most cases local companies will only hire expats as a last option.

China encourages foreign entrepreneurship and new market investment

Though the traditional expat job market is dwindling, new, more lucrative opportunities are emerging for those that are willing to pursue entrepreneurial or new market ventures. The start-up world of China is just taking off. Tech hubs and start-up incubators are now popping up all over China. Incubators including 500 Startups, Innospring, and Techstars all have established operations here to catch the wave of the new tech start-up craze.

According to the South China Morning Post, more than 100 foreign tech start-ups have popped up in China in the last few years, and the Chinese government seems poised to grow that number. In January, the China Daily reported, “policy incentives will be launched in different areas of China to support talents from overseas.” According to Zhang Jianguo, director of the State Administration of Foreign Experts Affairs, “We have to focus on the nation’s strategic goals and attract high-level talent to start innovative businesses in China.” With this type of attitude, it seems likely that we should expect new programs to attract start-up businesses from abroad to China.

In fact, one might say that the Chinese government is becoming even more innovative in its quest to attract entrepreneurial minds. In 2013 in Fuzhou, the capital of Fujian province located right across from Taiwan, the local Bureau of Foreign Experts Affairs launched a start-up incubator program to provide free workspaces and investment to attract up and coming foreign start-ups. Around the same time, the Shanghai Free Trade Zone was established to make it easier for foreign businesses to be established in China by taking a great deal of red tape out of the typical business registration process.

While westerners are familiar with the metropolises of Beijing and Shanghai, more opportunities will continue to emerge in the central and western parts of China. This is because more and more factories are moving west as transportation infrastructure combined with low land cost and local government incentives lure manufacturers. The Chinese government frequently publishes new editions of the “Catalogue of Priority Industries for Foreign Investment in the Central-Western Regions,” which lists incentives and programs for foreign investment into high-target areas in the less developed parts of China. Expats willing to explore these new markets, living and working in places not often traversed by foreigners, will be pioneers.

To take advantage of these opportunities, American businesses will no doubt need culturally skilled, and well-connected, expats to be a bridge to those programs. The entrepreneurial expat that is committed to developing a sustainable business idea, and stick it out long enough to build necessary relationships here in China, should profit substantially. This is the new generation of expats in China.

3 Quick Ways to Impress Your Guests at the DCBA Chinese New Year Gala

Today, February 24th, marks the end of the official Chinese New Year holiday. But, the party doesn’t have to stop. In fact, my friends at the Detroit Chinese Business Association are throwing a belated Chinese New Year Gala this coming Friday, February 27th, at Motor City Casino. Lucky for you, I have three quick CNY tips that you can use to impress your Chinese guests.

1. The many ways to say “Happy New Year!”

There is an assortment of Chinese phrases used to express Happy New Year. Here are a few:

新年快乐 (Pinyin: Xīnnián kuàilè!; prounounced: shin -NEEan – kwai – le)- This is the most basic, traditional “Happy New Year” greeting.

全家幸福(Pinyin:Quánjiā xìngfú;pronounced: Chew-enn Jia Shing-Foo) – Here you are wishing their entire family good fortune.

万事如意(Pinyin:Wànshì rúyì;pronounced: Wan-SHH ROO-EE)- Ok, this will REALLY impress them. It is a very traditional phrase meaning “Good luck and may all your wishes come true.”

If you can’t remember them, you can always download Google translate (iPhone, Android). Make sure you are translating from CHINESE TO ENGLISH, and then paste the Chinese characters I wrote above into the translation window. You can click on the little speaker next to the phrase and the phone will pronounce it in Chinese for you. Pretty slick.

2. Download WeChat

If you’re doing business in China and you or someone at your office doesn’t have WeChat yet on your smartphone, GET IT NOW! WeChat is used prolifically in business, and according to statista.com, there are now over 438 million active monthly users. It is by far the best way for you to keep communication with your business partners in China, and new friends you will make at this year’s gala.

Trust me, your Chinese guests will be really impressed when right after you meet them you say “Hey, can I add your Wechat?” You can read in Forbes about how WeChat was used across China during this Chinese New Year.

3. Gan Bei! Cheers!

Drinking is a huge part of the Chinese New Year tradition. So you can survive, and thrive, at this year’s Chinese New Year Gala, you need to remember the phrase for cheers in Chinese, “Gan Bei” (pronounced GAAN-BAY). Critically, make a point to cheers everyone INDIVIDUALLY at your table, and if you’re up for it, everyone around the room. Don’t be lazy! Clinking glasses with everyone for a personal toast is very important, and it should be fun. If you can remember to add one of my Happy New Year phrases above, you get bonus points!

I hope you enjoy your time at the gala and that you find these tips useful. If you do happen to use them, I would love to hear about it! You can write me at danredford10@gmail.com or tweet me @DanRedford. Gan Bei!

"Gan Bei" with my girlfriend and her cousins for Chinese New Year 2015 in Yueyang, Hunan Province
“Gan Bei” with my girlfriend and her cousins for Chinese New Year 2015 in Yueyang, Hunan Province

 

Governor Snyder Delegation Makes Waves in China

Two years ago, Governor Snyder came to China to start building a relationship almost out of nothing. At the time, it had been 11 years since a governor of the state of Michigan had come to China; Snyder vowed to reverse this trend and put Michigan back in the game to attract business and investment from this economic giant.

On Friday, Snyder and a delegation of 60-plus Michigan business owners and MEDC representatives left China after his now 3rd consecutive trade mission in as many years. As a Michigander that has been living in Beijing since the governor made his first trip, I am amazed and encouraged by the progress that has been made. Last year, the trip was headlined by the opening of the Michigan China Center in Shanghai, and this year, the governor took the message of the “Comeback State” on the road to Beijing, Shanghai, and Chongqing.

Third Trade Mission Delegation was dynamic, successful

Governor Snyder and I at the Beijing Reception - September 11, 2013
Governor Snyder and I at the Beijing Reception – September 11, 2013

The delegation itself has matured greatly from two years ago. It was exciting to mingle with so many high quality Michiganders at the governor’s reception in Beijing and see the hope and excitement they have being introduced to business in China. Although auto-related companies still represent the lion’s share of stakeholders in the bilateral relationship, this year’s delegation had a larger presence from service providers in a variety of industries. Terry Terry, President of Lansing-based video production and event management company MessageMakers, came with the delegation to not only film the historic visit but to also identify partners in China to grow his global business.

It was clear that real business was done on this trip. Prior to the Beijing reception, timber manufacturer and designer Morabark Industries of Winn, MI signed an agreement with a Chinese partner to formalize a business collaboration that will bring jobs to both Michigan and China.

The Pure Michigan Brand is gaining steam in China

Snyder’s efforts are clearly helping the name and reputation of the  “Pure Michigan” brand spread very quickly in China. During this trip, he secured a meeting and press conference with China’s Vice Premier Wang Yang, in which both agreed that there were a myriad of opportunities for a state like Michigan to collaborate with China. The Mayor of Chongqing, Huang Qifen, seemed to agree, penning a memorandum of understanding to build stronger economic ties between the city of 30 million people and Michigan. Government meetings at that high of a level would have been impossible two years ago.

What is even more amazing is the quality of the contacts the state has built in the private sector as well. In Beijing, the governor led the MEDC in meetings with the Chinese giant entertainment and real estate conglomerate, Wanda Group. Wanda group is growing into one of the largest and fastest growing private companies in China; last year, Wanda bought AMC Theaters for $2.6 billion, and is gearing up for huge foreign investment projects in the U.S. and throughout the world. The fact that Snyder’s team has at least put Michigan on the radar shows that Michigan is starting to get taken seriously.

Congratulations to Governor Snyder and this year’s trade mission for a successful trip! Please remember there are still thousands of Michigan resident expats here in China that are proud of where we come from, and are looking forward to helping contribute to building the Pure Michigan brand in China!

 

Top 5 “To Dos” for Governor Snyder’s China Trade Mission

Next week, Governor Rick Snyder will be traveling to China on his 3rd trade mission in as many years. Here are 5 things I hope he does during his trip (heck, I’d take 2!):

1. Bring home the bacon

Obviously, we need to see some real business deals signed that bring home jobs. There are at least 30 delegates going on the trip with Snyder, and I hope that at least one of them, such as Lori Huisman of Classic Design Concepts, can benefit from associating with the governor on this junket with a real business deal.

2. Declare that “密西根”is the standard Chinese name for the state of Michigan

It sounds crazy, but the state of Michigan does not even have a standard name in Chinese. There are at least 3 popular versions throughout China, but the state itself has never made it a point to standardize. The name 密西根 (pronounced mi-shee-gen) is the best choice and is already being implemented at the Michigan China Center in Shanghai, Michigan’s official office in China.

This will greatly help George Zimmerman, Director of Travel Michigan, and those of us Michiganders in China helping to promote our state!

3. Announce that he will personally sign visa invitation letters for serious real estate buyers

Quartz.com, and many other news outlets, commented about how Chinese have been going crazy over cheap buys in the Detroit Real Estate market. According to Fox News, though, many were unable to make purchases because they were denied visas to the United States. Ouch!

If the Governor signs an invitation letter, that goes a long way for a foreigner to get an approved visa. We could greatly avoid the missed opportunities created when serious buyers are denied entry. (Note: I understand that we don’t want the corrupt or the criminal entering either…proper due diligence on invitees would have to be a prerequisite.)

4. Pen a Sister City Memorandum of Understanding between Detroit and Chongqing

With almost 30 million people, Chongqing is China’s largest city. Lucky for Detroit, it is already sister cities with this giant! Snyder should re-ignite the sister city relationship by signing an MOU with their new party chief  to work towards sustained collaboration. (Ironically, the Party Chief of Chongqing was sacked last year in a corruption scandal and recently went on trial…I guess you could say there are some similarities between the two cities?).

5. Commission a “Detroit Dialogues” Series in Beijing

There are thousands of Michiganders and Chinese with Michigan ties that are ready to serve on the front lines to change the narrative about Michigan in China. We have access to corporate CEOs and government officials that we’ve worked with during our time here – – commission us to start a “Detroit Dialogues” series to get people talking about the realities of Detroit and Michigan. Consider this my application to volunteer!

Good luck to Governor Snyder and this year’s trade mission! 中国欢迎您!Welcome to China!

 

What is China saying about the Detroit bankruptcy?

Obviously, some of the biggest news to come out recently in Michigan, and quite frankly, the nation’s, history, was that of the Detroit bankruptcy. Since I live in China, I took the liberty of compiling a few headlines from major Chinese newspapers and e-zines to give you a glimpse into what Chinese media is saying about the bankruptcy. Indeed, Detroit has a long way to go to change the perception as a crime-ridden, impoverished place. Here’s to looking up!!

 

1. “底特律破产带给中国的启示:城市不是造出来的”  (Detroit’s bankruptcy has revealed to China one thing: The city cannot be built)

Source: Sohu Business

2.” 底特律破产警示城镇化弯路 “(Detroit bankruptcy warns the winding course of urbanization)

Source: Guangzhou Focus

3. “七嘴八舌话底特律破产” (A Lively Discussion in the Auto Industry about Detroit Bankruptcy)

Source: Auto.sina.com.cn

4. 底特律申请破产 “造中国底特律”论遭质疑 (Detroit’s Bankruptcy Raises Doubts about building a “Chinese Detroit” Partnership)

Source: Anyang Online (originally from Xinhua)

5. 底特律破产风险有多大 (Detroit’s Bankruptcy: How Big are the Risks?)

Source: QQ.com Auto

Detroit Attracts Chinese Real Estate Buyers – Detroit News Op Ed

The U.S. National Realtors Association recently announced as part of its report that Detroit ranked in the top 5 in terms of inquiries from Chinese buyers interested in U.S. real estate.

This is an awesome revelation and opportunity for Detroit! I co-wrote a piece on the topic with my colleague, Lamar Irby and Bryan Withall, and the Detroit News picked it up! You can read the op ed by clicking here or read the original below:

Detroit breaks the top 5 for inquiries from Chinese Buyers of U.S. Real Estate

By Dan Redford, Bryan Withall, and Lamar Irby

The time may be right for Detroit to roll out the red carpet for Chinese real estate buyers. In the recently published, “2013 Profile of International Home Buying Activity” by the U.S. National Association of Realtors (NAR), Detroit ranked in the top 5 among hottest cities receiving inquiries from Chinese buyers looking to purchase real estate in the U.S. It certainly stood out as the most unlikely in the group, considering the other cities – Los Angeles, Irvine, Las Vegas, and Orlando – have long been established as strongholds for attracting Chinese investors.

 

How could this be? This recent announcement may not come as a surprise to those that were following Chinese CCTV and social media on the Detroit Real Estate market earlier this year. In March, the China Daily reported that some real estate properties were available in Detroit for $100. On China’s Twitter, Weibo, the term “Detroit Real Estate” was also trending along with “pixie” (English: “leather shoes”), using leather shoes as a metaphor for how cheap Detroit real estate is. The CCTV report alone garnered 1.2 million posts on Weibo, according to “Want China Times.”

 

The “leather shoes” phenomenon quickly died down in the media, but not before at least some Chinese buyers made purchases. And what is now made clear from the NAR report is that Chinese buyers for the moment have their eyes on Detroit. With increasingly strict purchase restrictions and higher taxes for Chinese citizens in their domestic market, the increasing trend is for Chinese to invest their growing assets abroad.

So, how can Detroit take advantage of this opportunity? While it is unlikely for the cheap $500 home buys to be a boon for the city of Detroit, the last thing Detroit needs is to lure Chinese investors into quick, cheap deals that end up being “less juice than squeeze,” if not financial disasters. Clearly, Detroit has a compelling real estate market and economic story of rebirth to tell. A strategy that highlights good deals in good communities in Metro Detroit could build a pipeline for long term Chinese real estate investment and more.

 

Success will come down to how well real estate brokers and officials can tell the story of Detroit and ultimately execute purchases. It’s not that Detroit is without merit. For starters, Detroit’s real estate market prices climbed 13.6% year on year from 2011 to 2012. With prices for homes in Detroit well within the median Chinese purchase price of $425,000, this evidence should be taken as an encouraging sign of vibrancy in the Detroit market.

 

The Chinese should also be invited to be part of the revitalization of Detroit. In the June 7, 2013, Financial Times Life Section cover story, “The Future of the American City,” Detroit was profiled as a “city in the midst of a mini-boom.” The article cited several large investments and businesses recently moving in to the city, such as the high-profile purchases of Quicken Loans CEO Dan Gilbert, as evidence to show that Detroit is indeed gradually rising. Real estate brokers in Detroit should consider translating this article into Chinese and spreading it to the Chinese market.

This can happen. Detroit can build again, and now is the time to welcome the help of our Chinese friends whose interest is already peaked.

Dan Redford graduated from Michigan State University and is the Director of China Operations for FirstPathway Partners, an industry leading EB5 immigration investment fund management company. You can follow him at danredford.com

 

Bryan Withall is the Managing Director and CEO of Sino Outbound Limited, a financial advisory firm serving Chinese investors, including both institutions and individuals, interested in overseas real estate assets and real estate related investments. For inquiries: bryan@sino-outbound.com

 

Lamar Irby is a Detroit native and serves as the Director of Finance for China ProSol Consulting Services Co., Limited (www.prosolchina.com). He is based in Beijing.

 

Is the Chinese Dream an EB5 visa? – posted on Caixin Media

I recently re-entered the blogosphere and twittosphere, and the Internet Gods have already been good to me.

I co-wrote a piece with my friend and colleague, Justin Knapp, who shares my passion for Michigan, about the current state of the EB5 Immigration Investment market in China. The article, “Is the Chinese Dream an EB5 Visa?,” was posted last week in China’s largest business and finance online journal, Caixin Online.

You can read the English version by clicking here, 中文点击这里, or read the full text below:

You can read more from Justin and how to live a “Richer, Fuller Life in West Michigan” at Goodallfocus.com.

_______________________________________________________

Is the Chinese Dream an EB-5 Visa?

Both China and the United States would benefit from expanded use of an American immigrant investor program

By Justin Knapp and Dan Redford | June 28, 2013

Dream chasing is a popular topic in China these days. Thomas Friedman sparked the debate last October when he wrote a column titled, China Needs Its Own Dream. More recently, TheEconomist and CNN have also taken a gaze into the crystal ball to interpret China’s dream.

Chinese leader Xi Jinping, has loudly adopted the slogan “Chinese dream” while keeping quiet on the details of what that dream might be. Meanwhile, the American dream continues to be peddled in China’s mainstream culture and media. With foresight, the United States can benefit from this trend.

Today, more Chinese nationals than ever before are trying to live their dreams, not within the borders of China, but by gaining permanent residency status in the United States through investment and job creation. In fact, according to the Hurun Wealth Report 2012, more than 16 percent of China’s millionaires have already emigrated or submitted immigration applications, while 44 percent are planning to do so.

The Immigrant Investor Pilot Program (the EB-5 visa) was created by the Immigration Act of 1990 to stimulate growth by attracting foreign direct investment and creating jobs in America. To qualify for a visa, individuals must invest US$ 1 million or US$ 500,000 in a Target Employment Area which is a rural or high-unemployment area. Additionally, this investment must create and sustain at least 10 jobs on American soil.

Demand for the visa has fueled growth in third-party managed investment vehicles known as Regional Centers which are both privately and publicly run. To illustrate how quickly the EB-5 program has grown in the United States, the number of Regional Centers has increased from around a dozen in 2007 to more than 250 today, including at least one in every state.

While the public profile of the program has been marred by a small number of high-profile, soap-opera-like scams, the difficulties faced by applicants are in fact more mundane:  identifying profitable investment projects and creating 10 jobs. After a two-year waiting period, if an investment project fails to create 10 jobs, the foreign investor risks losing their investment and permanent residency in the United States.

Last year, the U.S. Citizenship and Immigration Services hired half a dozen economists to help evaluate the job-production claims, but many believe this added scrutiny has created a bottleneck in the approval process. The Association to Invest in the USA, which advocates on behalf of Regional Centers and industry service providers, recently noted a backlog of nearly 6,000 EB-5 petitions which are currently held up. At the low-end, assuming US$ 500,000 per investment, that’s potential for nearly US$ 3 billion and 60,000 American jobs.

Finding information about the number of deals in the pipeline is challenging. It has been reported that American businesses raised more than US$ 1.8 billion through the program in the fiscal year ended September 30, and over 7,500 would-be immigrants were issued visas. Interestingly, 80 percent of them were Chinese, a dynamic shift from the mere 25 percent just four years prior.

Time will tell how China defines its dream, whether it creates one of its own or simply adopts the American dream along with an American home. For now, Chinese investment in the United States can help boost the economy and put Americans to work. If it can stick to its founding principles and map out a clear long-term vision, the EB-5 program shows promise in helping both Chinese and Americans realize their dreams of successful and healthy local economies.