A comparison of the US investor visa and the Canadian investor visa - Research Paper Example

? A comparison of the US investor visa and the Canadian investor visa Immigration is the act of people belonging to various countries passing or coming into another country to stay there permanently. People from different countries immigrate for various reasons, such as, a hunt for a financially secure place which offers a better lifestyle and greater wages with added benefits. A high standard of living is also obtained in most cases. Mostly people living in the developing countries like to immigrate for reasons such as these. Another reason is education, where developed countries have some of the top ranked educational institutions and colleges which students from lesser developed countries want to study in. Another interesting aspect from the point of view of sociology is the immigration of close relatives or predecessors having an effect on the following generations, who would also like to immigrate. Political situations in many countries might be unstable and might force many people to immigrate to countries having stable and better conditions of living and more available human rights. It has been found that ambitious and work oriented people immigrate more. A new and very popular reason for immigration is cross border marriages, resulting in the immigration of spouses (Kaye, 2004, p. 159). All around the world, most immigrants have to obtain a visa for their movement from one place to another. All countries of the world have their own demarcated boundaries. No outside person can enter a country without a legal document certifying the entry, i.e. a visa against that countries immigration act. Thus a visa is a legal seal or a documented permission to enter a country. Mostly it is a stamp in the passport of the applicant. The visa gives details about the background of the person, so as to avoid conflict, terrorism or any problems from any dangerous persons and also helps to keep a count on the number of people entering a country (Embassy Infoz, n.d.). In this paper we lay special focus on the differences in the two visas and their impact, with a special emphasis on Chinese immigration to the US and Canada. From the huge number of migrating people every year to the US and Canada, a major number of them are Asians, mainly from China and India. The huge number of investor visas issued to Chinese immigrants has been increasing over the years and has been attributed to their wealth (Bruns, 2008). The purpose of the paper is to investigate the reasons for the huge number of immigrations, mainly concentrated on the Chinese population, and to find out the socioeconomic impact related to transnationalism. Immigration to the US and Canada From times immortal, many people from around the world have immigrated to the US for a better standard of living and the ‘American Dream’. However, as immigrants faced struggles in the new land to build their future, the natives complained of lost jobs and distorted cultures. Previously the policies for immigrants in the US were very liberal, but later on complex laws were devised to check the quality of the immigrants (Anderson, 2010, p. 1). Access to high skilled immigrants was of utmost importance for fostering competition within the US companies in the global market. New rules do not allow foreign talented individuals to stay in the US for a long time. This rule in particular encouraged companies to seek talent outside the country in the form of outsourcing. Many companies had also built setups in neighboring countries like Canada because of the high level of restrictions in the US (Anderson, 2010, p. 119). Investor visas were created to encourage foreign investors to put in money in a significant manner in the economy of the host country, in exchange for permanent residency, Green card in case of the US and Maple card in case of Canada, so that it may result in overall job creation in the host country. Both the USA and Canada have introduced investor or entrepreneur visas to encourage foreign entrepreneurs to settle in their countries and provide work to people there. These visas have many rules and regulations (Parnell and Bartlett, 2010, p. 54). The EB-5 investor visa is the only visa that enables the investor to apply directly to the US immigration for permanent residency in exchange for a huge amount of investment in the USA. Before this there were other visas like the E-2 and L-1A, but with those people found it hard to maintain their businesses in those countries. Then came the E-2 visa which was quite similar to the EB-5 visa, and although it had many benefits, it did not come with the permanency or green card tag and can be issued for only about five years (Parnell and Bartlett, 2010, p. 55; Sun, 1996, p.519). The EB-5 immigrant visa was created for the benefit of the US economy and to gain from foreign investment, at a time when a recession was looming large on the US economy, most of the manufacturing jobs had been outsourced, a failure of the military arms production after the Cold War and failure of savings and loans, the EB-5 visa would have attracted dynamic and talented professionals to come and invest in the US and create jobs in the US economy (Parnell and Bartlett, 2010, p. 55). Canada had the same type of foreign investor visa proposal and the interest was the same as that of the US. Canada assumed that more educated immigrants have a more significant effect than the less educated ones, so they introduced a points based selection program, because of which the immigrants arriving in Canada after the 1970’s are highly skilled (Gibney and Hansen, 2005, p. 66). The Canada immigration visa was devised to attract highly skilled immigrants to come to Canada and further develop the economy and increase the population. The investor visas for Canada are different and based on a point based system as opposed to the United States. In Canada the immigrants seeking investor visas are expected to make a Canadian $800,000 investment in the country and must meet certain point criteria (Bruns, 2008) Why Asian investors are targeting the US and Canada? According to Bruns (2008), the foreign investors poured millions of dollars into US projects, which were projected to create thousands of jobs. The US EB-5 visa had provisions for much more. Foreign corporate money has its eyes on the US after the introduction of the new investor visa scheme. The level of interest was known to be the highest among the Koreans and the Chinese. It was reported that the Peoples Bank of China was encouraging individuals to and investor companies to invest abroad so as to check inflation in China. Korea had relaxed its rules involving capital transfers from the country. Thus these indicate that trade missions we were focused on the high net worth individuals and the companies which had high capital (Bruns, 2008). The landing records and the 2001 census of Canada confirm that the Chinese have become the largest group of immigrants, with almost 800,000 Chinese immigrants landing between 1980 and 2000 and account for 20 percent of the population of China. In 1985, the federal policy to let business entrepreneurs and investors and self employed persons was expanded. This was a move by the Canadian government to the huge number of rich investors and entrepreneurs in China. A considerable number of Chinese from Taiwan also immigrated to Canada as benefactors of this program (Lo and Wang, 2003, pp 2-3). Chinese immigrants of various origins are attracted to Canada because of the better economic opportunities in both employment and business. Canada welcomes the Chinese because of their contribution to Canada’s economic growth and the huge sums they invest (Lo and Wang, 2003, p.3). Chinas economy is second only to the US and is the largest in Asia. It had registered a growth of 10 percent a year fro many years. The relative strength of China’s currency to that of the US and Canadian dollar makes investment in these countries attractive (Butler, 2011). Current statistics show that the number of individuals looking for investments is growing in China, the number of millionaires in China being 875,000 and the number of billionaires being 115 in 2010. The wealthiest 0.05 percent of China has investable funds of more than $2.7 trillion (Butler, 2011). In the US the hotel sector had been in focus for the Asians as this sector has the capacity to employ many workers and is also a growing industry, and helps to fulfill the conditions for the US EB-5 investor program (Butler, 2011). Despite high qualifications and the ability to speak Canadian languages with proficiency, many Chinese immigrants are unhappy as they have not been able to achieve desired results and economic performance in Canada. This inability of success has caused worries for the Chinese government as it can have a variety of effects on the citizens staying in Canada, affecting social inclusion and integration that Canada aims to achieve through its immigration program (Lo and Wang, 2003, p 3, Harrison, 1996, pp 7-9). The main areas of investment According to reports, the FDI in Canada by China in 2004 was C$220 million. The reason for choosing Canada is because it has one of the highest qualities of life in the world; US markets can be accessed easily, has lots of energy resources to supply power, good technology available and has greater opportunities for expansion (Woo and Zhang, 2005, p 8). The areas of major investment had been energy and resource sectors. There is growing number of investments of the Chinese outside these sectors as well, although those are smaller compared to these. Some of these include telecom, hardware, supermarket chains and pumps. The ever increasing GDP of China, a rising currency, continuous current account surplus and deeper engagement into the global production network, was expected to have a greater impact on the investment sector with more and more investments expected (Woo and Zhang, 2005, pp 6-7, Green and Green, 1999, pp. 425-426). A study of investments in the US shows that the hotel sector had been a major sector for investments for the Chinese, as more workers can be employed in this profession and it favors the EB-5 visa requirements. Also, there was an explosion of Asian tourists and the soaring of wealth of Asian investors led to such investments (Bruns, 2011). The Chinese have been found to invest in the real estate and the energy sector in the US. Some of the top investments in 2009 include Beijing Automotive Industry Company’s acquisition of General Motor’s Saab car designs and technology. According to the US Bureau of Economic Analysis the Chinese FDI in the US reached US $1.2 billion in 2008 (Viewpoint, 2010, pp 2-4). Chinese investment in the US is a natural outcome of the US market’s conveniently priced assets, after the economic downturn, a lower exchange rate and consumer driven export market in North America (Viewpoint, 2010, p 5). Transnationalism, diaspora and globalization Transnationalism is a social movement, which has been under research for many years, and includes the connectivity between people and the lessening of the boundaries and their social impact among countries. Over the past few decades, the emergence of diaspora and transnationalism had been an important topic for researchers. These researches focus on the transnational social formations as well the macro-societal elements within which it occurs, such as globalization and multiculturalism. Diaspora has often been used to describe groups, national or religious, staying outside their home countries whereas transnationalism have been used to show the ties of the migrants across countries and involves all types of social constructs such as transnationally active groups and organizations. Although both of these are used collectively most of the times, they reflect different intellectual genealogies (Baubock and Faist, 2010, p 9). Toronto is the largest and in the whole of Canada it is the most multi ethnic centre. Among the various ethnic groups that Toronto has, the Chinese are one of the largest. Chinese immigrants have been settling in Toronto since the 1870’s, but it is strange to see that it emerged as an important city for the Chinese only recently. Till 1923, the number of Chinese immigrants from China had increased drastically, but then entered a slump till the 1950’s, after which the immigration picked up pace again. From 1947 to 1967, when the Chinese Exclusion Act was repealed, the Chinese population in Canada could sponsor their relatives and dependents to come to Canada, and this is what caused a surge in the number of immigrants. Moreover the development of globalized capitalism increased the speed of migration and along with it, the scope (Tian, 1999, pp 7-8). During the Chinese Exclusion era, Chinese immigrants faced a lot of problems. They were not only prohibited by the Chinese laws to immigrate to the United States but also faced increasing economic, political and social instability at home. Thus, under such circumstances, the Chinese were highly motivated to enter United States- “The reason we Chinese come to the United States is because of …extremity at home, we have no other method by which we can keep our bodies and souls together. Should we be blocked in this… will our calamity not be expressible?” (Chan, 2006) It was because of the immigrant’s determination that the exclusions failed to end migration. During that era, it was estimated, that 300,955 Chinese successfully gained entry into the United Stated. This demonstrates the power of immigrant resistance and the agency (Chan, 2006, p. 1). The Chinese who migrated to the US in the exclusion era were just a small part of the huge number of people migrating in the wake of globalization and capitalism. It was argued that the Chinese went to America because the Americans went to China. Research shows that most Chinese who immigrated in the late nineteenth and the early twentieth century belonged to a certain central district in China, Guangdong (Louie, 2000, p.649). Ethnic, civil unrest and factors such as natural disasters and a growing population forced them to migrate. The unrest was thought to have been because of the American imperialism and instability that led to inflating taxes and inequality. Favoring the immigrants was the new steamship route from Hong Kong to San Francisco. The contact with American missionaries and trades also gave them ideas about the living standards available to them on emigration (Chan, 2006, p. 3). What the Chinese really wanted was a ‘bowl of rice’, which was possible only when people had a job. Since jobs were drying up in China, the only lucrative alternative seemed to be America. Although Chinese people have migrated to various places all over the world, they solely believed that the United States would be able to provide them with the best future (Chan, 2006, p 4). The Chinese in Canada and entrepreneurs In the Toronto, there are many China towns in different parts of the city, the central one being in the Dundas and Spadina area. There are several Chinese families also living in the cities of Oshawa, Oakville, Burlington and Hamilton (Tian, 1999, p. 9). The surge in the Chinese immigrants to Toronto had led to growth and the high reliance upon ethnic communities, but also a great expansion of the economy. In both US and Canada, there have been increasing investment by many Chinese individuals and interest groups in industries which require heavy capital and technology, such as computer, transnational businesses, but most of the immigrants are associated with industries which use heavy amount of Chinese labor. Chinese business in Canada is of four categories, namely, traditional type, professional firms, firms in Canada owned and controlled by foreign investments with headquarters in Asia and capital intensive investments by business immigrants (Tian, 1999, pp.9-10; Li, 1993, p.224). The diversity of the Chinese community is found in the form of different classes, organizations, dialects and sub ethnicities, old versus new entrants and also Canadian born and foreign born and Cantonese speaking or Mandarin speaking. They also differ in whether they are students, or visiting scholars, or less educated ones, from Mainland China or refugee seekers, pro-Communist or anti. However much may be the segregation, these communities do provide positive transnationalistic environments where these migrants can live, learn and adapt themselves to the society (Tian, 1999, p. 10). The common problem for both US, which we see later, and Canada was that the number of refugees in Canada is increasing and this has been the centre of debate and controversy, whether Canada should follow a strict immigration policy and check the number of immigrants or a liberal policy. The ones arguing in favor of the closed door policy puts forward the point that Canadians were being removed from the labor market as the immigrants agree to work at lesser wages and poor conditions. The newcomers have also been accused of not being able to blend with the Canadian culture and have no values and culture, thereby eroding the already established values of the country. The ones favoring for liberal policy point out that the immigrants do not drive out Canadians from work, but instead they create more jobs, do non-unionized jobs, increases productivity and the competition in the Canadian economy (Tian, 1999, p.12). Unlike the US system, the Canadian government set up a points system for immigrants and gives a priority to family reunification. The economics emphasis is however on the investors and entrepreneurs who have the ability to set up their own business in the country and provide work there. Moreover the entrepreneur should be active in management of the business. Both categories of visas are assessed by the Independent Immigrant category on a scale of 100 points, with a score of fifty points needed for entry. The factors used to judge the candidates are education, suitability, occupational demand, experience, age, knowledge of English or French, relative in Canada willing to assist, arranged employment or designated occupation and the destination city in Canada. Entrepreneurs are required to score twenty five points for a visa. Self employed entrants must however score fifty points. The major focus is on the entrepreneur’s ability to create jobs and the intent (Weaver, 1984, pp.124-126; Green and Green, 1995, pp.1009-1011). The Chinese in US and entrepreneurs Similar to the Canada experience, the Chinese came to the United States to seek better economic opportunity. The Chinese brought with them their language, culture, social institutions and customs. Over the years they have tried to blend in with the residents of the US and became an integral part of the United States population. Initially the Chinese settled in the San Francisco region. Gradually as the population of the Chinese grew, they formed Chinatowns in most of the major cities. The first and the most important of these were the ones in San Francisco. These enclaves have been the places where the Chinese have traditionally lived, worked, shopped and socialized. These turned from crime and drug dens to colorful tourist attractions in the 1990’s (Oracle’Thinkquest, n.d.). In the US, the Chinese not only were engaged in mining for gold, but they also took o jobs such as cooking, peddling and storekeeping. Many took up jobs that nobody else wanted or were considered too dirty. In 1970, The Naturalization Act was passed, restricting the Chinese from immigrating to the US. This was the first such law prohibiting the entry of any ethnic group into a country. Even before this the Congress had passed a law prohibiting American ships to bring in any Chinese migrants to the country. The main reason behind the Chinese Exclusion Act was to prevent the excess cheap labor that was being made available by the Chinese and this was hurting the local laborers. To check the increasing number of males in the Chinese population and the decreasing numbers for a period of time, there was huge amount of illegal immigration and the creation of ‘paper sons’. Gradually as time passed, the Chinese became part of the US culture and the relations between China and the United States improved (Oracle’Thinkquest, n.d.). Similar to the Chinese in Canada, the Chinese immigrants in USA faced many hardships, they have a very deep effect on America. Primarily, they supplied the labor for America’s growing industry. Chinese workers were very important in California during the Civil War. The Chinese gradually started their own factories as more and more entrepreneurs came to the areas. Unlike Canada ,the numerous railroads they built in America helped open rich resources in many states of America and made the transportation of important goods easier. Dry lands where they has settled were transformed into rich farm lands, cultivating, planting and harvesting vineyards, orchards and farms (Oakton, n.d.). The main point of similarity between the two countries is that since the growing population of the Chinese along with other immigrants has decreased the number of labor jobs in America and Canada, there were rising protests. Policy makers had to think as to how to control such a situation. The investor visa program was introduced then, with a special focus on foreign entrepreneurs. The investor should invest $40,000 and should employ at least one domestic worker. This visa is highly desirable as this does not need a labor certification and the investors are entitled to green cards. However the number of visas is limited and an annual quota of a certain number is fixed for specific countries (Weaver, 1984, pp.117-122; Ulman, 1974, p. 417). Several reforms have been undertaken for the investor visa category and many rules have been changed post 9/11. Minimum Investment amount has increased from $40,000 to $250,000; employ at least four US citizens and have to be the principal manager (Weaver, 1984, 117-122). The socioeconomic experience of Chinese investors in America and Canada The success of the Chinese in overseas countries in business had been the subject of research. In North America, there has been a presence of certain immigrants in particular businesses, such as food services, clothing, retailing and cloth manufacturing. These immigrants have had to face a lot of discrimination, but the Chinese overcame such hostile social and economic conditions to succeed as business entrepreneurs (Li, 1993, pp 219). The success of the Chinese in North America lies in the fact that their culture is a driving force for their success. It primarily focuses on the perseverance, familism, cultural affinity, frugality and industriousness. Also the opportunity presented by the host society was equally responsible for such a success, with racial segregation in the American South creating a certain society and an area of operation fort the Chinese (Li, 1993, 220). It has been seen that immigrants have remained attached to certain traditional values of their home country. The treasures that they posses are their culture, facilitates their success in any type of venture they did. Traditional Chinese used familism, via which the overseas Chinese settled in America, supplied the needed business capital to their kin and clans. Also certain values like hard work, education and valuing education helped the Chinese a lot. This had been termed as entrepreneurial familism (Li, 1993, pp 220). Another way by which they seem to have succeeded is through their sojourning mentality, where because of their passion for their homeland and the desire to return there, got involved in business that were profitable, had low capital intensity and high liquidity. Thus this motivation to move to their homeland helped them rise slowly and become successful (Li, 1993, pp 221). Institutional racism in America forced the Chinese to enter laundry business and work which was considered menial, and much later, restaurants. Underemployment and unemployment was such that it urged them to operate in groups or as partners. They were thus descried as the fillers in the division for class (Li, 1993, pp 221). However, the increased diversity in the occupation and permanent settlement is slowly removing the sojourn mentality from the Chinese. Immediately after the World War II, the hostility towards the Chinese decreased to a great extent, and thus this enabled the Chinese to venture into other types of business, and move pout from the confines of the ethnic business sector (Li, 1993, pp 223). As globalization spreads throughout the world, more and more Chinese have migrated to the North American countries of USA and Canada. These migrants establish families and search not only for capital but also for social recognition, or a sense of belonging. It has been seen that many of these Chinese settled here face racial biasness that draws a line from the white population living there. The Chinese usually have to bear many kinds of humiliation such as, protests by white neighbors against the moving in of Chinese in upscale white neighborhoods, non inclusion in certain social functions where only whites can attend and continuous stereotyping of the Chinese as laundry men and restaurant owners, despite the Chinese being highly educated, having capital or even Western degrees (Pon, 2005, p. 161). Chinese women in the US and Canada undergo or experience sexism and racism. Antiracism movements started in many places seem to take up issues only for the Blacks against the whites, but not the Asians (Pon, 2005, pp 162). Another important aspect is where the Asians are looked upon as Left, and the general discourse says that it does not support capitalism. The Asians here on the other hand do support the market structure and fail to understand the anti capitalism and anti globalization agendas discussed in higher education here (Pon, 2005, pp 164). Apart from all these, the Chinese women have faced various types of sexism and racism. It was seen that there is a glass ceiling for them at work, i.e. above a particular level, they cannot rise at work. Majority of the top executives at offices have been given to white Caucasian males. Women there have also faced less pay at work as compared to the men (Pon, 2005, pp. 167-169). The awareness among women there regarding these matters contributes to their support for the employment equity and antiracism education. There is thus a need for equity in employment, but it should use an indicator such as merit (Pon, 2005, p. 169). The Chinese in these countries are slowly getting absorbed in to the culture, but at the same time they also aim to keep in touch with their culture and traditions. Increasing contact with the mainland of China and the Chinese people abroad have made transnational flows possible and increase their sense of Chineseness. Chinese government discourses label American Chinese as Chinese, but these groups lack those patriotic sentiments. Transnational flows have rejoined and connected, through migration, media and capital, the mainland China to the Chinese population abroad, without actual migration (Louie, 2000, p. 646). The creation of an environment similar to the homeland is now possible, where only cultural flows, not bodies are crucial to the creation. Social actors establish transnational linkages from scratch at distant origins to create communities that produce specific type of people. The relation between the second and third generation migrants to the original migrants have changed a lot, and also the relation to the motherland, due to the circulation of images, goods and capital and people who are part of the transnational flows (Louie, 2000, p. 648). Transnational mass media have created a public network that links the motherland with the Chinese outside, reigniting a mainland centered nationalism (Louie, 2000, p. 646). Conclusion From the above literature we get to see why ethnic entrepreneurship emerged among the Chinese in Canada and the US and also the various aspects of transnationalism taking shape over a period of time with the blend of diaspora. The paper shows how the US and Canada became preferred destinations for the Chinese and how they overcame every possible obstacle in their path to settle in new lands with a possibility of a new future. In their endeavor, they faced multiple problems of sexism and racism in Canada and US, while also being politically looked down upon in Canada. Women in US and Canada both face discrimination at work and racist bias. Over time the Chinese populations in each of these countries have grown and have brought about significant changes in the economies of these countries with the railroads and goldmines in the US, to the laundry and restaurants in Canada. They had taken over numerous industries in both the countries. They had brought their culture and traditions with them and yet they have adjusted with the varying societies at large. Canada applies a point based entry system so as to strain the quality of the immigrants. The US policy is the EB-5 visa which has no such point system. This was mainly needed, as the recent financial crisis in the US and the weak and volatile situation of world markets have led to most of these countries looking for capital and hence on this note, the investor and entrepreneur visas have become an important aspect of immigration and permanent residency now. Debt crisis have led to stricter visa norms and limits in the US. The Chinese GDP had soared over the years and remained largely unaffected by the world economic upheavals. The large number of millionaires and wealthy entrepreneurs and that urge for the American life have made the Chinese invest more in North American markets. Significant market shares now belong to Chinese enterprises, from automobiles to tools, and it is expected to increase further in the coming years. References Anderson, S., (2010), Immigration, Santa Barbara: ABC-CLIO. Bruns, A (2008), Write the Check, Get a Green Card, Site Selection magazine, retrieved on November 15, 2011 from:http://www.siteselection.com/issues/2008/may/naReports/ Baubock, R and Faist, T, (2010), Diaspora and Transnationalism: Concepts, Theories and Methods, Amsterdam: Amsterdam University Press Butler, J. 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