Diverse talent needed to cater to demands of new Chinese consumer
Matthew Maslin and Cecilia Tsim say companies in China are increasingly seeking out locally educated talent, as they understand the new Chinese consumer better than returnees
While Chinese students have been going abroad to study since the early 20th century, the trend began to build momentum after Deng Xiaoping's economic reforms of the late 1970s and early 1980s. As a result, these - commonly referred to as "sea turtles", its homonym - have become a prized asset when they eventually return for employment in a local company.
President Xi Jinping , in a speech last year, urged overseas-educated Chinese to contribute to realising the dream of national rejuvenation. More than a third of the estimated 2.64 million who have gone abroad have returned to work. This proportion has increased over time as the Chinese economy has developed in size and complexity.
However, as the quality of Chinese education has improved, and Chinese companies have become better able to compete with foreign firms in the domestic market, so the need for has decreased. Now, young Chinese who know the domestic market are in increasing demand to help domestic companies compete with multinationals at home and then help those same Chinese companies go abroad to invest and do business.
Today, a stint abroad represents a potentially heavy opportunity cost for a student who can become woefully out of touch with China's domestic market and the new Chinese consumer. That means increasingly more have been unable to find meaningful work when they return. As a result, there is now a new term for them: , or seaweed.
The trend can be seen across multiple industries: China's financial services, automotive and consumer industries are less eager to take on , preferring to seek out young people educated in China who have a deep understanding of the China market, and are in tune with today's Chinese consumer.
Nevertheless, companies in service industries still value returning oversees students for the skills and global view they bring to their jobs. And, for Chinese firms going overseas, research and development expertise remains one of the most important skills can bring back.
