China’s Elite Move to Japan: Dissatisfied with Regime, Wealthy Individuals Seek New Life

A 45-year-old Chinese man who once ran a metal trading business in China and relocated to Tokyo, Japan, in March. He changed his name to Tomo Hayashi and brought his family to Japan. Hayashi resides in a high-end coastal condo worth $650,000 and sends his two sons to a Japanese elementary school.

Like Hayashi, it is investigated that the number of wealthy Chinese individuals moving their lives to Japan is increasing. The Wall Street Journal (WSJ) reported on the 2nd (local time) that these individuals, dissatisfied with the Chinese government’s dictatorial system and economic slowdown, are embarking on a departure, benefiting Japan’s luxury real estate market. Japan is an excellent choice for Chinese people looking to leave their hometown in many ways. It’s a neighboring country that can be reached in just a few hours by plane and uses Chinese characters, making it relatively easy to adapt. Above all, the yen’s recent weakness has been cited as an advantage, allowing for cheap real estate purchases and other assets.

The number of Chinese residents in Japan was about 822,000 at the end of last year, an increase of 60,000 from the previous year. According to investment migration consulting firm Henley & Partners, as of June last year, 13,500 high-net-worth individuals in China planned to emigrate overseas that year. This is the highest number worldwide. Orihara Osamu, a real estate broker in Tokyo who was born in China and naturalized, said his income has increased three to four times compared to 2019, before the COVID-19 pandemic, due to the increase in Chinese buyers. He said, “The difference from the past is that more people want long-term visas.”

WSJ reported that one-third of the homeowners in the 48-story building where Hayashi lives are individuals or corporations with Chinese names. More than a quarter of the residents living in high-rise buildings near Tokyo Bay were also found to be Chinese. According to the Japanese real estate industry, the average price of newly built apartments in central Tokyo rose 40% last year to around $740,000. The frenzy of buying resorts in Japan among the Chinese is also heating up, causing a stir in Hokkaido’s holiday spots. The Furano village, near a ski resort in northern Hokkaido, saw residential land prices rise 28% last year. That’s the steepest increase in the country.

Chinese people planning to emigrate to Japan face two significant challenges: transferring money to Japan and obtaining a visa. Although the Chinese government restricts the amount of cash its citizens can take out of the country, many wealthy Chinese own companies engaged in international business or make overseas investments. Orihara explained, “Our clients usually have bank accounts in Hong Kong or Singapore so they can transfer money to Japan through these accounts.” Regarding visas, they can obtain a business management visa if they invest more than $32,000 in a Japanese company with a permanent business office and at least two employees. Some are also believed to apply for an expert visa using their advanced degrees. WSJ reported, “Japan is not the only choice for Chinese who dream of moving to other countries. The United States, Canada, and Singapore also attract them, and Hong Kong residents often head to the UK.”