BEIJING, Dec. 25 (UPI) -- More wealthy Chinese are applying for U.S. permanent residency through the EB-5 visa process that requires a minimum $500,000 investment, Chinese experts say.
However, they warn such applicants may be victimized by financial traps set by domestic immigration agencies and foreign investment organizations, China Daily reported.
Qi Lixin, chairman of Beijing Entry and Exit Service Association, told China Daily the number of applicants for the U.S. EB-5 visa almost doubled this year 2009 to 1,000 from last year.
Basically, an EB-5 visa allows an applicant investing $500,000 in a U.S. government approved regional center with high unemployment to gain U.S. permanent residency.
The China Daily report said the main reasons for the increase in EB-5 visa applications is enhancement of business opportunities and a better education environment for children in the United States.
Qi said in most contracts signed by investors and immigration agencies, there is no specific provision to prevent investors from being exposed to heavy losses.
"If unforeseen things happen, we do not know who will shoulder the responsibility from the contracts. Besides, there is no federal law in United States to protect Chinese immigration investors," Qi said.
The report said in Beijing alone 76 agencies are engaged in immigration business.
"We admit it is risky to take part in these investment programs," Liu Jingjing, consultant from Beijing Kaisheng, was quoted as saying. "But what we choose are relative safe programs. So far as I know, all cases we conducted are progressing well."
