A bill proposed by two U.S. senators late last month which seeks to tempt foreigners into buying houses with the promise of residence visas has been fiercely criticized in China, according to the Beijing News.

A bill proposed by two U.S. senators late last month which seeks to tempt foreigners into buying houses with the promise of residence visas has been fiercely criticized in China, according to the Beijing News.

The bipartisan proposal, if passed, would offer a three-year residence visa to foreign buyers who make an all-cash investment of at least US$500,000 in a U.S. home. Investors can either spend the entire amount on a primary residence, or purchase a house worth US$250,000 and invest the remainder in another rentable residential property.

 

The bill, devised by U.S. Democratic Senator Chuck Schumer and Republican Senator Mike Lee, is part of a wider package of immigration measures which aim to shore up the country's weak housing market and encourage more foreign investment.

However, the bill includes some restrictive measures. Foreigners immigrating with the new visa can bring their spouse, along with children under the age of 18 to the U.S. However, they will not be eligible to work unless they obtain a regular work visa through the normal visa process. They should live in the U.S. for at least 180 days per year, and pay income tax on all foreign earnings. Furthermore, they won't be eligible for medicare or social security benefits, and will lose the visa if they sell the property.

According to Schumer, the scheme is "a way to create more demand without costing the federal government a nickel." Lee commented that the bill is expected to encourage foreigners, especially Chinese people, to come to the U.S. He added that the new visa policy would make it easier for Chinese visitors to become major consumers in the U.S., which would, in turn, spur tourism development.

The proposal, supported by such noted celebrities as Warren Buffett, has been criticized for mainly targeting Chinese investors.

International buyers now account for almost 8 percent of total sales in the U.S. housing market. In the past year, Canadians led sales overall, accounting for almost a quarter of foreign home buyers, followed in smaller numbers by China, Mexico, India, and the United Kingdom, according to the National Association of Realtors.

The proposal has aroused interest among potential Chinese buyers, with some even inquiring whether home-ownership status immediately confers permanent U.S. residence via the green card. Shao Shiwei, a real estate advisor with the HM (Beijing) International Investment Consulting Co., said that hype surrounding the proposal was causing confusion about its specifics.

Shao commented that the true purpose of the policy, which grants only a three-year residence visa for US$500,000, is to woo Chinese investors to spend more in the U.S."You buy a house there, but are not allowed to work. You have to remain a consumer and pay property tax at a rate of 1-3 percent annually," he said. Shao added that buyers who hoped to settle in the U.S. should be cautious and act according to their financial conditions and real needs.

Chinese scholar Zhang Bo expressed skepticism regarding the bill's apparently friendly intention to attract Chinese nationals to live in the U.S. According to Zhang, the bill has been crafted purely out of self-interest."In short, the U.S. is expecting other countries, especially China, to spend more in the country to help it shake off the economic downturn," he said.

Some U.S. Internet users have expressed concerns that the new visa policy would exert added pressure on the already strained U.S. jobs market, as it is likely to attract many foreigners looking to stay in the country for a long time. These people would, in turn, apply for work visas.

A U.S. student now studying in Beijing, with the Chinese name of Yang Siyu, said that many Americans remained skeptical about the bill's feasibility, and some even had strong objections. He stated that most Americans are worried that criminals may use the opportunities created by this policy to turn the country into a haven for money-laundering or risk aversion.