Exclusive | China’s diplomats working abroad given a ‘very rare’ pay rise, sources say

Wages have gone up by more than US$1,000 a month regardless of location or rank, according to people familiar with the situation
It could be a bid to reassure diplomatic corps and suggests Beijing believes they have ‘more significant role to play’, analysts say

China’s Communist Party

SCMP Reporters

Published: 10:00am, 19 Apr 2024

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Chinese diplomats posted to overseas missions received a substantial pay rise this spring, sources say, in what is seen as a vote of confidence after the abrupt departure of the country’s former foreign minister.

Salaries have gone up by more than US$1,000 a month across the board, according to several sources familiar with the situation, who declined to be named due to the sensitivity of the matter.

They said the pay rise was approved by Beijing in recent months and applied to all officials posted to Chinese embassies and consulates overseas, regardless of their location or rank.

Officials working in foreign relations within China would not receive the pay increase, the sources said.

It is a substantial raise for Chinese officials and comes as government bodies at various levels are looking to make deep budget cuts.

Qin Gang has not been seen in public since June last year. Photo: AP

Deng Yuwen, former deputy editor of Study Times, the Central Party School’s official newspaper, said the move could be aimed at trying to stabilise the diplomatic corps after Qin Gang was suddenly removed as foreign minister last year.

Qin has not been seen in public since June, and was dismissed from his post in July, just six months into the job.

His predecessor, Wang Yi, returned to the role – a move in line with Beijing’s tradition of parachuting in trusted members of its top decision-making body to steer the Communist Party through a political crisis.

Qin has been stripped of his official titles, including state councillor, and state media announced he had “resigned” as a member of the national legislature in February.

There has been no explanation from Beijing, prompting intense public speculation about Qin’s disappearance.

According to Deng, the pay increase could be an effort to reassure cadres in the diplomatic corps over that and other challenging situations.

“The leadership change may prompt some concerns among Chinese diplomats – and being a diplomat is very demanding, especially in the current environment in China,” he said.

Deng said it could prompt some to question whether they want to stay in the diplomatic service.

“So in such situations, the best approach is to provide some encouragement and support,” he added.

Claus Soong, an analyst at Berlin-based think tank the Mercator Institute for China Studies, said the pay rise was “indeed very rare” at a time of belt-tightening and economic headwinds.

The Chinese government does not release information about pay scales for officials but they are known to be modest compared to those of other white-collar workers in the country’s most developed cities. Chinese officials posted abroad are also understood to earn more than their colleagues in China.

Beijing has been pushing governments at all levels to rein in spending, telling them to “get used to” tight budgets in recent years. The central government was also told to expect belt-tightening when Premier Li Qiang delivered his annual work report in March.

As China grapples with a sluggish post-pandemic economic recovery, even the most affluent provinces such as Jiangsu and Fujian have been cutting cadres’ pay and benefits in recent months.

In this context, according to Soong, the leadership “evidently believe that Chinese diplomats on foreign missions have a more significant role to play and more demands to fulfil”.

“They are more useful in the current political situations,” he said.

Soong said the diplomatic corps had become more important to Beijing’s strategic direction – not just for US-China relations but also ties with Europe and developing countries.

“Beijing needs people to be confident in it,” he added.

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At a party meeting on the foreign policy direction in December, President Xi Jinping urged diplomats and cadres to “break new ground”, “rally the overwhelming majority” of the world and maintain a “fighting spirit”.

He said China had “new strategic opportunities” and called on cadres to elevate the country’s “international influence, appeal and power”.

Soong said the growing role of diplomacy in the country’s overall strategic direction could be seen in the significant increase in this year’s budget.

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For 2024, the diplomacy budget has been set at around 194 billion yuan (US$26.8 billion) – a jump of some 23 per cent from last year, according to the government budget report.

The increase dwarfs that for defence spending, which is up 7.2 per cent from last year, as well as for the general public budget, which grew at just 4 per cent compared to 2023.

China’s diplomacy budget has risen steadily in recent years, growing some 39 per cent from 2019 to now. Last year, spending on diplomacy went over budget by 4 per cent.

Chinese officials stationed overseas are also excluded from a move announced last year to reduce staff numbers by 5 per cent across party and state organisations.