China’s economic powerhouses urged to fix ‘challenging human-to-human aspect’ amid talent hunt
- European Union Chamber of Commerce in China position paper showed Beijing’s strict zero-Covid policy measures detracted from efforts to attract overseas talent
- Officials must improve work permit and residence policies, as well as training public employees to ‘make foreign nationals feel welcome in the community’
China’s local governments, especially its economic powerhouses, need to increase efforts to attract international talent and treat foreign nationals equally, according to the European Union Chamber of Commerce in China.
The “European Business in China - Nanjing Position Paper 2023/2024”, released on Thursday by the chambers chapter in the provincial capital, stated that China’s strict zero-Covid policy measures detracted from the region’s push to become more international.
The paper, which was compiled based on contributions from more than 120 members from May until January, highlighted the need for local governments to improve their work permit and residence policies, as well as training its public employees to “make foreign nationals feel welcome in the community”.
Business is coming back, but the human-to-human aspect is still challenging
Many international businesses cited China’s control policies, which included sudden lockdowns, mass screening and mandatory quarantines, as among the reasons that they have struggled to retain and attract foreign workers.
European Union Chamber of Commerce in China president Joerg Wuttke said China is facing growing competition from other countries in Asia, including Japan and South Korea, when it comes to attracting foreign talent.
‘The point about keeping foreign students here is essential,” Wuttke said, adding that costly air ticket prices to China are still putting off international visitors.
“Business is coming back, but the human-to-human aspect is still challenging.”
‘It’s less attractive’: China’s bid to lure talent hit by zero-Covid legacy
The paper said that there are continuous hurdles for both companies and applicants, such as foreign students seeking to work after graduation.
The transition from student status to a working residence permit is also “unnecessarily difficult”, which discouraged recent graduates from staying in China to build their careers, it added.
Students waiting for a job offer may be forced to leave China after graduation because there is no grace period, while the process of obtaining a residence permit is seen as a challenging prospect for small- to medium-sized foreign companies that lack resources.
Foreign nationals who try to use a public service find that workers often do not know how to handle passports or non-Chinese names
“Improving communication and clarity about application requirements and procedures, while also trialling initiatives that attract developing talent, would make the province far more attractive as a place to work and live,” the paper said.
“The province could go some way towards making up for what it lacks in this regard by creating the best possible environment for foreign talent. This would provide a good foundation for increasing internationalisation in the future.”
There are often language barriers to access information on public services, leaving some feeling “left out” or are unaware of how to take advantage of support, the paper said.
“In many cases, foreign nationals who try to use a public service find that workers often do not know how to handle passports or non-Chinese names,” the paper said.
“Furthermore, the onset of the Covid-19 pandemic led to increased discrimination against foreign nationals in some circumstances.”
‘Talent is in short supply’: China labour demand shows signs of heating up
The paper also noted that a “significant” 85 per cent of chamber members in Nanjing reported there were issues with the enforcement of regulations concerning environmental and health and safety issues, citing sudden changes in policy and insufficient time to adapt.
“Member companies also report often being asked to suddenly reduce their operation’s throughput to combat air pollution or to meet other provincial targets,” the paper said.
“In some industries, shutting down without prior planning can compromise safety, and because of the nature of different operations, may have little or no impact on the amount of pollution they produce overall.”
Jiangsu’s gross domestic product hit an estimated 12.29 trillion yuan (US$1.78 trillion) in 2022, just behind the top performing Guangdong province.
Foreign direct investment in Jiangsu in 2022 rose by 5.7 per cent, year on year, to US$30.5 billion, up further from US$28.85 billion in 2021, which represented a year-on-year increase of 22.7 per cent, according to data from the local government.
