This is powerful for US investors and business owners to realize
when selling to Chinese investors.
America Is Cheaper Than China!
This is one you may not believe, but real estate in America is
cheaper than China! First tier Chinese cities such as Shanghai
and Beijing have properties that command higher premiums than
even Manhattan island!
How could this be? As the Chinese continue to flock to first
tier cities, they're leaving behind their hometown. This
lopsided effect creates higher and higher demand for a limited
supply of city property. Many feel this trend is not going to
slow down. Even with the already high real estate prices, more
and more Chinese are moving into these big cities.
As inflation continues in China, prices of food and other basics
is on the rise as well. There are stories from many Chinese who
have moved to America showing photos on their social media of
the clear skies and cheaper food.
Own the Land
In China, when someone buys the property, they can only lease it
from the government for 99 years. This is a new policy, and no
one’s lease has run out yet. So maybe after 99 years you will
have to turn it back over to the government? Or maybe you will
have to pay taxes? There isn’t a clear answer on what will
happen after the lease is up.
While most are not thinking about it and figure it will all work
out, many Chinese investors consider this an unknown and want to
hedge it. Buying property in America you own the land rights
outright. There is little question that government policies will
ever question this in the future.
Use These Facts for Selling to Chinese in America
Keep these facts in mind when you approach a Chinese business
owner or investor. They are in America and have considered these
points in their decision making. Many of these points also
reflect the cultural differences and buying habits.
Are you a savvy business owner who is catering to the growing
Chinese population on American land? Be smart and adjust their
sales strategy to entertain these. Oh yes, and they love Hello
Kitty as well!
Best of luck on tapping into the growing market of Chinese
relocating to America.
Michael Michelini is an Asia
business consultant with his firm GlobalFromAsia.com. He enjoys
helping level the playing field in Asia for Western business
owners trying to enter the complex Asia markets. You can reach
him at his firm’s website GlobalFromAsia.com.