Courageous Steps Needed to Develop Rule of Law

In his book The Wealth of Nations, Adam Smith explained that under tyrannical and monarchical rule, property rights are always at imminent risk of infringement – and people will usually respond by hiding their wealth. In case of emergency, they can transfer their holdings to a safe haven.

Though not as serious as Smith's description, China's situation is nevertheless very grim. Indeed, even though that emergency is yet to come, China's rich are already transferring their assets abroad on a large scale. The country is experiencing one of the largest emigration sprees in history. Among business owners with over 100 million yuan worth of personal assets, 27 percent have already emigrated while 47 percent are considering it.