In China, You’re Richer When You’re Poorer
Posted by admin in General
Interesting post at The Wealth Report on China's suspicion of the wealthy, and how being rich can help you lose friends and put your life in danger. Here's the story of self-made entrepreneur Niu Gensheng:
It's a story straight out of the American millionaire playbook: the rise to riches, the hard work, the sudden liquidity event from an IPO. And just as it would in America, Mr. Niu's windfall attracted all manner of hangers-on, relatives and charitable causes.
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Kidnapping is far more common in China than in the U.S., so Mr. Niu started worrying about his kids' safety. And he faced the pervasive Chinese hatred of the new rich.
It's even got a name in China: the "wealthy-hating complex," or Chou Fu.
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Mr. Niu realized that wealth was as much of a curse than blessing. "We asked ourselves, 'What happened?' and 'Why?' " he says. "We were not happy at all."
What to do? Mr. Niu donated almost all his shares to charity to support agriculture, education and medicine. The shares were worth about $500 million at the end of last year. He says now: "You have more friends when you're poor."
China's different than the United States in that even fewer people hold the majority of the wealth while most are incredibly poor, but it's still interesting to see the difference. In the U.S. these days, there may be some jealousy, but most people aspire to get wealthy and feel to do so is a testament to their hard work and brains. In China, they have to apologize for it.
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