19 Dec 2013
Words
Tim Admin
Accommodating Chinese business migration
David Jiang Hui, who heads Resort Brokers Australia’s new China Desk, says management rights present ideal opportunities for many Chinese people seeking to move to Australia under the business migration scheme.
He should know. David, who left behind a very highly paid executive position in Shanghai to bring his family to Australia, is also the Resident Unit Manager of an inner-Brisbane complex. He has proven business skills, having previously managed a $US40 million budget and a team of more than 15 people in Asia.
He knows the requirements of the immigration process. And he is an experienced accommodation operator. Now David is concerned that many of his compatriots are missing valuable opportunities in the sector. Often, he says, they are ushered down the predictable route of buying food or retail businesses simply because some commercial agents see that as the easiest option. With Resort Brokers, he is eager to use his extensive business development skills and understanding of management rights to help skilled migrants invest in businesses that offer greater security, income and lifestyle benefits.
And he is fostering networks and contacts to forge essential links between operators, buyers and sellers. For years, Australia’s increasing trade and diplomacy with China have been laying the groundwork for the demand growth we are experiencing. And that growth is set to continue, given the rapid rise of the Chinese middle class, and increasing numbers of international students visiting our shores. A new generation of Chinese migrants is using the wealth generated by their nation’s emerging free market economy to buy businesses in Australia. Lifestyle, education and opportunity are what it’s all about. Australia’s business migration policies focus on facilitating the permanent entry of people who can make a positive contribution through their skills and entrepreneurial spirit. A total of 25,509 Chinese nationals were granted a permanent visa in 2011-12, with the ‘skill stream’ accounting for 62 per cent of the visas granted. The programme involves a two-stage process. Migrants initially enter Australia on a provisional (temporary) visa and are allowed Temporary Residency (TR) valid for a period of four years. Once a provisional visa holder has owned and operated a business here for no less than two years, and is able to demonstrate a specified level of business activity, they can apply for Permanent Residency (PR).
“Some sales agents eager to attract clients can ignore or fail to understand the possible challenges migrants can face, such as meeting the requirement to conduct the day-to-day business management,” David said. “They need to employ at least two full time staff, who are already permanent residents, and show an annual income of more than $200,000 in Queensland, and $300,000 if they are interstate (NSW and Victoria) applicants. Being introduced to unsuitable businesses, where they will find it difficult to meet these criteria, is a real risk.” Management rights are ideal because they provide both a home and a business, fulfill most of the permanent residency criteria, and are safe, profitable investments with a secure income and appealing lifestyle.
“You don’t need specific experience to take up management rights, which can be an issue with some types of businesses. “But Chinese certainly understand how to do business and, provided they are matched with the right complex, they do very well because they work hard and provide excellent service,” David said. What business migrants need most is accurate, knowledgeable advice from a business broker who understands their culture and can effectively and honestly communicate vital information. They also need to deal with a broker who understands and has experience of the business model he is recommending. David’s career background – most recently as the highly qualified Senior Market Manager (Asia) for a major energy business – means his approach is not purely sales driven.
“I am very concerned with developing trust and understanding and increasing knowledge, which will be better for the industry in the long term,” he said. “I have already found Chinese buyers are thriving as complex managers and are very grateful that they were introduced to management rights. “I don’t just take the simple sales approach of knocking on doors. The combination of Resort Brokers’ experience, reputation and resources, with my skills and cultural understanding, delivers tremendous advantage. “I can expose vendors’ listings to the valuable Chinese market and meet the demand from migrants to find businesses for which they are very well suited, and where they will prosper.”