China is currently emerging
We all read the reports of how China is experiencing an emergence of new middle, upper and super rich classes. But how do the rich of China benefit the U.S.? In more ways than you may think.
Some of the elite are sending family members here to be educated or just to live. Others are sending wives abroad to give birth. Many of the newly rich can afford to have “anchor-babies” in the U.S. In 2010 , it cost a mere $15,000 for a pregnant woman to have a hospital, a doctor and a few extras arranged to facilitate the birth. As these trends continue, there are three main industries I predict will benefit from China’s newly rich.
1. Real Estate
They need shelter, plain and simple. Many of China’s rich are looking to spare no expense with the purchase of one or multiple homes. The most common real estate markets are those in cities with international airports and low costs of living. Texas (Houston and DFW) and Illinois (Chicago) are just a few places of note.
2. Education Institutions & Education Consultants
Culturally, the Chinese value education. Today, American colleges and universities are still viewed as top-notch institutions. So much so, that Chinese students attend U.S. schools at higher rates than any other country. As long as U.S. higher educational institutions are deemed symbols of success, more and more Chinese will flock to attend school here.
3. Start-Ups/Entrepreneurs
Many of China’s new rich are looking for businesses to start/run and most have a penchant for risk. Instead of solely investing in large publicly traded companies, they are looking for innovative ways to tap into new markets. Programs like EB-5 Immigrant Investor make these investment opportunities a reality.
The takeaway
New opportunities for Sino-US relations on our home turf will continue to emerge. Many US businesses would do well to tap into this new market segment to boost business. By re-evaluating your current customer base and finding ways to serve China’s rich, new revenues can be captured.
