Senator Grassley and Senator Leahy introduced a new rough
draft of “American Job Creation and Investment Promotion Reform Act” on April
15, 2017. The updated bill would provide incentives to rural communities, priority
urban investment areas, infrastructure projects and manufacturing projects. The
overall perception of the updated draft is very positive in the Chinese
marketplace. The increase of investment capital to $800,000 and $1,000,000
would change the EB-5 investors market especially in China. As China’s middle
class continues to struggle to find capital at the current $500,000 level, the
new bill would make the new EB-5 Program a true investment program for only
high net worth individuals. This would result in a more sophisticated investor
market and an overall smaller market size. The smaller market size would mean
fewer investors but also a shorter waiting period for the current visa backlog.
The visa set asides for rural areas and priority urban
investment areas change the focus of the EB-5 Program back to the intent of the
original legislation. An increase in transparency, integrity enhancements and
restriction of foreign involvement in the program will create a positive
reputation for EB-5 program across the world. The potential impact in the Chinese
market would be very positive and would provide certainty for the next 3 years. The proposed draft bill is well received by Chinese migration industry.
We will continue to monitor the new bill as there are only a few more working days in congress until the EB-5 Program expires on April 28th.
Join us in Chicago on June 6 to discuss the latest trends and regulations on Chinese outbound investment, register at http://2017investusa.eventbrite.com
We will continue to monitor the new bill as there are only a few more working days in congress until the EB-5 Program expires on April 28th.
Join us in Chicago on June 6 to discuss the latest trends and regulations on Chinese outbound investment, register at http://2017investusa.eventbrite.com
