China facing economic meltdown as Xi Jinping's tactic backfires spectacularly
Xi Jinping has been focusing his economic policy on "common prosperity" but China continues to experience considerable financial setbacks.
China is on the brink of a major economic meltdown amid a persistent housing sector and investment crisis.
And now Xi Jinping's crackdown on public displays of wealth is set to deliver a further blow to the Chinese economy.
A new report has highlighted that China is on track to become the biggest millionaires loser in the world, as the country's wealthiest flee.
According to the investment migration consultancy firm Henley & Partners (H&P), this year Beijing will lose more wealthy people to emigration.
They said: "China is again on track to be the biggest millionaire loser globally, with an anticipated net exit of 15,200 [high-net-worth individuals, or millionaires] this year."
China counts an estimated 862,400 millionaires but the departing portion is still a major loss for Beijing as it comes at a time of increasing economic uncertainty.
The PRC has been struggling to recover since President Xi's strict Covid lockdown rules were lifted two years ago.
The ongoing real estate crisis, paired with youth unemployment and high levels of local government debt has further exacerbated the difficulties Beijing has been facing.
President Xi has been focussing his policies on promoting sustainable growth and reducing wealth inequality in favour of "common prosperity."
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However, the move has caused a drag on the accumulation of wealth, likely pushing a large group of the country's wealthiest to relocate away from mainland China.
The favoured destination for these individuals appears to be the United States, which has been experiencing a surge in the arrival of high-income immigrants.
Hannah White, from the Institute for Government, wrote in the H&P report that China and neighbouring India are experiencing a surge in emigration as millionaires fear current regulation may damage them in the long term.
Ms White noted that the two nations are "seeing high net outflows because of the success of their sizeable economies in generating new millionaires, although slowing wealth growth in China in recent years could mean sustained losses become more damaging over time."