There have been two important developments in the US EB-5 program that can have a significant impact on demand for the program amongst Chinese investors, and also on the way the program is run in the future.
A significant issue affecting applicants from China is that of the Chinese retrogression. To understand what is retrogression and how it impacts applicants from China, it is important to understand how the US immigration process works.
The US Congress sets an annual global limit on the number of immigrations allowed to enter the country in the year. This quota is divided into sub-quotas for each country. Further, the sub-quota for each country is further sub-divided into quotas for different categories.
In 2014, the quota limit was set at one million immigrants. This limit was further divided into the various employment categories — from EB-1 through EB-5. In 2014, the Congress permitted the issue of a maximum of 10,000 EB-5 visas to immigrants from all over the world. Apart the category-wise limit, the law also imposes a limit on total immigrants from a particular country.
In 2014, the China was allocated a total of 70,000 immigrant posts, out of which a maximum of 700 visas could issued to Chinese immigrants under the EB-5 program. Spots that remained unutilized at the end of the year were carried forward and added to the next year's limit.
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The content of this article reflects the personal insight of Attorney Colin Singer and needs no disclaimer.
