Under the new scheme, the so-called 'high-end talents' will not be bound by the mainland's rigid payroll quotas at largely state-owned institutions or hukou - the household residence restriction.

They will be given more flexible pay packages on a case-by-case basis and their families will be given preferential treatment in access to jobs and schooling.

The initiative is part of the mainland's 11th five-year plan to improve its talent pool and the quality of scientific and technological research and development.

The efforts come as the country is grappling with a shortfall in skilled workers, particularly world-class scientists and engineers.

The shortage, coupled with a brain drain to foreign countries caused by globalisation, has led some to issue warnings over a possible economic downturn.

More than one million students have left the mainland since 1978 to study abroad and just a quarter had returned by the end of last year.

Shanghai Public Administration and Human Resources Research Institute director Shen Ronghua said the measures would go some way to reversing the trend.

'But there is a lot of catching up to do, particularly in the field of research as our research resources are far inferior,' Mr Shen said.

'So [administrators] should not be carried away by how many people we can attract, but how each talent can fit in and how much value they can add.'

The ministry said it was mainly targeting internationally established researchers, pioneers, or team leaders in specific research areas. Others could be associate professors with overseas universities or senior executives with one of the world's top 500 companies or famous accounting or law firms.

Beijing-based marketing specialist Laurie Luo, who returned from Australia in May 2005, said she was not sure if she could measure up to the criteria, but she appreciated the government's efforts.

Ms Luo said there was hardly any comparison between China and some developed countries in quality of life and social welfare and 'that's why you see some Chinese professors willing to work in a convenience store abroad'.

'But many Chinese don't necessarily want to stay in another country and only do so because of worries about infighting and stress back home. I share their worries,' she said.

'But the government is moving in the right direction by showing some goodwill.'

School's out

Returning to the mainland is becoming an increasingly attractive option among overseas-educated Chinese

A total of 134,000 students went abroad in 2006, a year-on-year increase of 12.9%

In 2006, the number of students returning from overseas jumped by 21.3 per cent to 42,000

By the end of last year, 1.067 million mainland students had gone abroad. Returnees totalled 275,000