I’ve recently moved to an area that has a large population of immigrants from China. Several of them have become my friends, and as I get to know them, they share the various ways of beating the system, especially the American system. I am continuously amazed at all of the ways they have for scamming the system.
From my research, I’ve listed below are the top 7 ways Chinese Americans Scam the American system:
7) Cheating Obama Care. What many people don’t realize about Obama care is that a person doesn’t necessarily have to be a US citizen to apply for benefits. In some states a person only has to have been a resident for two years to qualify. This has prompted many recent Chinese immigrants to import their parents/inlaws and make them state residents. Ultimately, Chinese who have never paid a dime of US tax are getting billions of dollars in free medical care.
6) Fake Marriages. Many people from around the world game the US system through a fake marriage, but the Chinese have become masters of it; and some have gotten rich from it.
5) Birth Tourism. By the time you finish reading this blog post, more than a thousand Chinese babies will be born in the U.S., all with the sole purpose of getting a US passport. In 1868, the U.S. ratified the 14th Amendment to the U.S. Constitution. The first sentence reads: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.”
The law allowing anyone born in the U.S. to become an automatic citizen was made more than 200 years ago when it took weeks in a leaky boat to get here. Now, someone in Beijing can be in LA in less than 12 hours.
The Center for Immigration Studies, which tends to favor more restrictive immigration policies in the U.S., took a worldwide look at the issue in 2010 and found that “only 30 of the world’s 194 countries grant automatic citizenship to children born to illegal aliens.”
4) Cheating the IRS. One of the guys in my neighborhood is an American married to a Chinese woman. In great detail, he’s explained to me how she operates her business, called “Asia Pearl,” making millions every year and not paying a penny in taxes. Her preferred techniques for beating the IRS are 1) Get paid in China, and 2) list EVERYTHING as an expense.
Moving the profits to China where it’s easy to hide them. Her company makes clothes that are sold to a U.S. reseller in New Jersey then sold to the Walt Disney company. She inflates the cost of manufacturing so it looks like her profit is much less than it is. And she makes her customers pay her in China (They transfer the $ to China then pay her). That way, the IRS can’t track how much she’s getting paid. The Chinese are using this method to cheat the IRS out of $Billions, maybe $Trillions.
She turns everything into an expense. I think most small business owners will admit that some of their business expenses are questionable. However, the Chinese take it to an entire new level. She claims everything as an expense, literally, everything she spends including groceries, private schools for their children, automobiles, the mortgage on their house, etc.
Cheating the IRS on this scale can get tricky so she keeps 5 sets of books. One, the cooked one, for the IRS, one for her, one for investors, one for customers, and the other he husband doesn’t even know what its for.
3) Grabbing Real Estate. Ask any Chinese what American products they want (and yes, I’ve been there and have asked them), and they will tell you the same thing: Real Estate. They are not interested in American cars or products, they want to own a piece of America, literally. Thousands of Chinese real estate companies have been quietly buying as much of America as they can. The money they get comes from Chinese in China who have benefited from the massive trade deficits with the U.S. In sort, Americans are literally giving up their country for junk made in China.
2) Blackmailing Washington DC with North Korea. China has been using N. Korea as a way to get their way with Washington every since Bill Clinton took office. Any common person in China will tell you (yes, I’ve asked them) that the Chinese government doesn’t want normal relations between North Korea and America. That is, North Korea has been China’s ace in the hole since the end of the Korean war. Did you know that Bill Clinton approved the sale of missile guidance technology to China (Ok the Chinese said it was for satellites, but everyone except Bill knows what it’s really for). Then, to get their money back, China sold the technology to North Korea. A win-win-win for China.
1) Turning Products into Subscriptions. Ever notice that the quality of Chinese goods never seems to get better? Very few people realize that this is on purpose. The Chinese are only concerned about the sale, not what happens after the sale. After all, most retailers and online retailers will only accept returns for the first 30 days, so for the Chinese, they just need it to last 30 days. It means that Americans are in a cycle of constantly replacing their stuff while the Chinese get rich producing it.
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