Chinese graduates with foreign degrees coming home to earn more
Young Chinese professionals who have earned a degree abroad earn on average 17.2 percent more than compatriots who hold a degree from a domestic university, according to a survey of 100,000 graduates by Beijing-based recruitment firm BossZhipin.
The firm found that young professionals with a foreign degree earned RMB 7,306 (US$1,097) a month on average – short of their RMB 8,315 (US$1,249) expected monthly income. The firm’s report also claimed that Chinese graduates with degrees from France and Germany earned more on average than graduates with degrees from other countries.
The Ministry of Education reported that 544,500 students studied abroad in 2016, marking a 36 percent increase on the number of students that studied abroad in 2012. However, in contrast to years past, more students are returning to China than ever before: 80 percent of study abroad students returned home for work in 2016, compared to only 30 percent in 2006.
The increase in returnees reflects the increasingly competitive Chinese labor market, which benefits from lucrative incentives in some locations. The Ministry reports that 16.2 percent of study abroad students work for internet firms, 14.9 percent opt for the business and financial sectors, 13.4 work in education, while 8.7 choose media positions and 6.4 percent work in culture and entertainment.
Inclusive development goals to spur employment, income growth
At the recent 19th National Congress of the Communist Party of China, President Xi Jinping announced government plans to prioritize more inclusive economic growth. Officials have framed the change in policy as a transition from a period of rapid growth that prioritized GDP growth targets to a period of sustainable growth that will prioritize efficiency.
The prioritization of quality growth, rather than fast growth, takes aim at “the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life”, as described by Xi during his speech.
Many observers expect officials to place increased policy focus on employment, income growth and distribution, as well as balance of payments. Home ownership affordability, education quality, and access to medical services are other issues that Xi addressed during the speech.
China Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, India, Indonesia, Russia, the Silk Road, and Vietnam. For editorial matters please contact us here, and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates is a full service practice in China, providing business intelligence, due diligence, legal, tax, IT, HR, payroll, and advisory services throughout the China and Asian region. For assistance with China business issues or investments into China, please contact us at firstname.lastname@example.org or visit us at www.dezshira.com
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
This Dezan Shira & Associates 2017 China guide provides a comprehensive background and details of all aspects of setting up and operating an American business in China, including due diligence and compliance issues, IP protection, corporate establishment options, calculating tax liabilities, as well as discussing on-going operational issues such as managing bookkeeping, accounts, banking, HR, Payroll, annual license renewals, audit, FCPA compliance and consolidation with US standards and Head Office reporting.
China’s foreign investment landscape has experienced pivotal changes this year. In this issue of China Briefing magazine, we examine how foreign investors can capitalize on China’s latest FDI reforms. First, we outline new industry liberalizations in both China’s FTZs and the country at large. We then consider when an FTZ makes sense as an investment location, and what businesses should consider when entering one. Finally, we give an overview of China’s latest pro-business reforms that streamline a wide range of administrative and regulatory measures.