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China’s Global Talent Movement & its Implications & Impacts

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1 China’s Global Talent Movement & its Implications & Impacts
Huiyao WANG PhD 王辉耀 Director General, Center for China and Globalization President, China Global Talents Society Vice Chairman, China Overseas Returned Scholars Association Senior Fellow, Harvard Kennedy School September, Tampere, Finland September 10, 2013

2 CV of Dr. Huiyao Wang Dr. Wang is a Director General of Center of China and Globalization, a Senior Fellow at Harvard Kennedy School and Asia Pacific Foundation of Canada. He was also a Visiting Fellow at Brookings Institution. He has taught at Peking University, Tsinghua University in China and University of Western Ontario in Canada. He has been a senior advisor to the Chinese government at both central and local levels and has served as a Task Force Leader for Global Talents Strategy Study Group of Department of Organization of Central Government. He has also participated in drafting China’s National Talent Development Plan Dr. Wang is also the Vice Chairman of China Talent Research Society and the President of China Global Talents Society as well as an Economic Team Leader for Overseas Experts Advisory Committee of China State Council Overseas Chinese Affairs Office. Dr. Wang has researched extensively on China’s talent issues and published over 30 books and 100 papers and articles on the subject, including his recent English book Globalizing China, Strategy, Influence and Success of Chinese Returnee Entrepreneurs and also Entrepreneurial and Business Elites of China: The Chinese Returnees Who Have Shaped Modern China. Dr. Wang is a Board Member of Richard Ivey Business School in Asia and also a Board Adviser of Association of Executive Search Consultants, a worldwide headhunters association based in New York.

3 OUTLINE I. China’s Global Talent Movement II. China’s Global Talent Trend III. China’s Talent Policy Development IV. Some Policy Recommendations V. Further Ideas on Global Talent Cooperation

4 Ⅰ. China’s Global Talent Movement
Three Waves of Globalization--A New Framework First Wave: globalization of trade -- goods movement; Second Wave: globalization of finance -- capital movement; Third Wave: globalization of talent – talent movement

5 High-Speed Flow of Global Migrants
(UN DESA, 2009) Between US & China According to the report of Chinese Embassy to the U.S. , the daily personnel exchange between US-China is up to 10,000; US issued 1.08 million visa in China in 2011 ,and 1.38 million in 2012;

6 Eight Transformations in China on Talent
From Population Dividend to Talent Dividend From “Made in China” to “Created in China” From Attracting Financial Capital to Attracting Human Capital From Hardware to Software From Investment-Driven Economy to Talent-Driven Economy From Resources Driven Economy to Knowledge-Driven Economy From emphasis on Science & Technology Innovation to both S & T and Social Innovation From rely on domestic talents to rely on both domestic and international talents

7 ⅰ .Chinese Overseas Students
Largest Overseas Students “Source Country” in the World In 2012, China students went abroad to study reached 399,600. The number of Chinese students study abroad account for 17% of the total of the world. Source: Annual Report of China’s Study Abroad 2013

8 US-China Students Movement
ⅰ . Chinese Overseas Students US-China Students Movement According to the newest Open Doors 2012(IIE), Chinese student enrollments increased by 23 % from previous year, from 157,558 in ,to 194,029 in Source: Open Doors 2012(IIE),Ministry of Education of China

9 Students Exchange Deficit of China
2011 Data Source: Ministry of Education of China

10 ⅱ .Chinese Global Migration
Chinese Obtaining Legal Permanent Resident Status just in 3 countries Total 146,760 Source: Annual Report of Chinese International Migration (2012)

11 Application of Chinese Mainland for I-526 Visa
US-China Migration Asian rights groups union’s report In 2011, the Chinese population has reached million in USA, is the biggest Asian descent in US More than 60% of Chinese immigrants ,that is million ,have already got US citizenship. Application of Chinese Mainland for I-526 Visa Source: Bloomberg Businessweek ,March 29,2013

12 ⅲ .Foreign Experts in China
The Foreign Expert Working in China by Main Source Country : Source :State Administration of Foreign Experts Affairs

13 ⅳ .Returnees Returnees Are Rapidly Increasing
Source: Annual Report of Chinese Returnees Development 2013

14 Reasons of Chinese and Indian Returnee Entrepreneurs Back to the Home Country
I have co-authored a new study with Vivek Wadhwa, Sonali Jain, AnnaLee Saxenian, Gary Gereffi on Chinese and Indian returnee entrepreneurs . Findings Include: More than 60% of Indian and 90% of Chinese respondents cited economic opportunities in their countries as a very important factor in motivating the return home. The returnees took pride in contributing to economic development in their home countries. More than 60% of Indians and 51% of Chinese rated this as very important. 56% of Indians and 59% of Chinese said their quality of life back home was better or equal to what they had experienced in the United States. Salaries were the only advantage the respondents attributed to the United States.53% of Chinese respondents said that salaries were higher in the United States.

15 Migration reason China Career Development 91.6 Receive Education 90.5 Living quality 84.3 Better Infrastructure 82.6 Fator Drawing Chinese and Indian Home Domestic Economic Enviroment Economic opportunities 91.8 Domestic Market 77.8 Lower Business Cost 38.0 Government Incentives 22.6 To Contribute to Home Economics Development 52.3 Better Specialty Opportunity 84.0 Better Career Opportunity 87.3 Increase Demand of His Speciality 86.8 Better Living Qulity 55.5 Higher Payment and Salary 57.1 Personal Comparisons Family Benefcial 67.0 Take Care of Old Parents 78.8 Short Distance to Family and Frends 76.8 Children’s Emotion Growth 24.9 Children’s Education 17.6 Living Qulity 33.5

16 Returnees are changing China in various ways
1. Education and Science Areas Talent Type Returnees Ratio University Presidents 78% University Advisers 63% Directors of Key laboratory 72% Winners of National Award for Technological Invention 40% Winners of National Award for Science and Technology Progress 30% Source: Annual Report of Chinese Returnees Entrepreneurship 2012

17 2. In Chinese Government In history, the cabinet of Dr. Sun Ya-San, returnees took 15 of the 18 ministers and vice minister positions in the nine government ministries Today China still faces numerous challenges in terms of science and technology innovation. Encountered with a variety of domestic and international complexities, China has to employ high-quality talents with modern professional knowledge and international views, especially those who have studied overseas.

18 3. Key Players in China’s Hi-Tech Industries and Entrepreneurship
Source: Survey of Annual Report of Chinese Returnees Entrepreneurship 2012

19 4. Pioneering Enterprises Listed Overseas
In 2009 alone, a record 33 Chinese companies were listed on the NASDAQ. Most of the NASDAQ-listed Chinese companies are either funded or run by Chinese returnees

20 5. Managing Multinationals in China
The new waves of Chinese overseas graduates who had already returned, or who work for MNCs or leading companies abroad, have filled many of the top management positions in MNCs, often as in-country directors or managers. Google, Microsoft China, UBS, Alcatel, News Corps, Siemens, Hewlett Packard, Ernst and Young, BP and General Motors.……

21 By Huiyao Wang, Emerald Publishing, 2011, 2012 United Kingdom

22 Ⅱ. China Global Talent Future Trends
Talent Movement Speeds up More Going Abroad More Coming Back More New Comers

23 Lowering Ages of Chinese Students Going Abroad
Students going to study in secondary schools in US 65 6725 Source: US Department of Homeland Security The number of mainland students participated SAT in Hong Kong in 2013 is expect to be 60,000. Asia World-Expo has been used as SAT examination hall since Source: Hong Kong Examinations and Assessment Authority

24 Lowering Ages of Chinese Students Going Abroad
Most Students in China’s High-School want to study abroad. Most of them are top students. Source: The Survey for Study Abroad of High School Students ,by CCG,2013

25 China is Becoming the New Study Destination of World Students
100,000 Strong China Secretary of State Hillary Clinton officially launched the initiative ,100,000 Strong China ,in May 2010 in Beijing. The Chinese government strongly supports the initiative and has already committed 10,000 “Bridge Scholarships” for American students to study in China.

26 China is Becoming the Biggest Driver of International Tourism Growth
Over 83 million Chinese tourists spent $102 billion overseas in 2012, almost double the amount recorded in 2010 (UN/WTO). Chinese are becoming one of the biggest overseas travelers spending countries. Chinese President Xi Jinping spoke at the Opening Ceremony of the Boao Forum for Asia the number of China’s outbound tourists may well exceed 400 million in the coming 5 years!

27 III. China’s Talent Policy Development
ⅰ. The 18th CPC National Congress: Establish an talent system advantage with international competitiveness Implement the strategy of revitalizing China through talents. Speed up the system and mechanism reform of talent development and policy innovation

28 ⅱ. China’s National Talent Development Plan (2010-2020)
2001 APEC conference on human capacity building in Beijing. 2003 national conference on human resources development Establishment The Central Talent Work Coordinating Group 2007 CCP adopted talent development as a strategy to revitalize the country and put this into the Party Congress Report and Party Charter 2010 passing China’s National Talent Development Plan ( )

29 Main Indicators of China’s National Talent Development Plan
Target       Unit 2008 2015 2020 Total Number of Talent   10 Thousand 11385 15625 18025 Ratio of R & D talent in Labor Force 1/10000 24.8 33 43 Ratio of High Skilled Talents in Labor % 24.4 27  28 Ratio of Labor Force who Have Higher 9.2 15 20 Ratio of Human Capital Investment of GDP 10.75 13 Ratio of Talent Contribution to GDP                  18.9 32 35

30 ⅲ. Thousand Talents Program
2010 Thousand Young Talents Program 2011 Thousand Foreign Experts program 2011 Special Talent Zone (人才特区) 2012 Ten Thousand Talent Plan (万人计划) By now ,more than 3,300 overseas high-level talent has been recruited under Central Government Thousand Talents Program and 20,000 under local programs

31 ⅳ Policy Breakthrough 1. China Talent Visa
In July,2012, China revised the Law of Exit and Entry, established a Talent Visa under the ordinary visa type. In July 2013, China has introduced new“ talent visa ” .

32 2. China Green Card In Aug, 2004,China implemented “Green Card” system. By the end of 2011, the number of foreigners who get Foreigner‘s Permanent Residence Card is According to the newest official statistics, this data has nearly 6000 by now. According to official of Bureau of Exit and Entry Administration ,China will lower the requirement of obtaining Chinese Green Card in the near future ,to allow more talent living permanently .

33 3.Measures of Foreigners Permanent Residence in China ‘s Relevant Treatment (Sept, 2012)
Foreign residents enjoy the same rights and bear the same obligations as Chinese citizens in principle, except political rights and some rights and obligations not entitled in laws and regulations; Their period of stay in China is unrestricted; they could enter and exit China with valid passport and foreigners permanent residence card , without having to make a separate visa and other formalities; If they are under employment in China, they don’t have to apply the “Foreign Employment Permit; They can found foreign-invested enterprises with technology shares or capital shares, and develop Foreign Direct Investment with lawfully RMB in China; They can participate in the social insurance procedures by the valid identity certificate, Foreign Permanent Residence Permit .

34 4. China’s New Exit-Entry Law
New exit-entry regulation for foreigners was released in July 23 and went to effect at Sep 1,2013 New law went to effect at July 1,2013

35 IV. Some Policy Recommendations
China needs to improve its global talents movement Should further enhance its policy on overseas talents Attract more foreign students coming to China Lower Chinese green card requirements Adopt dual nationalities to attract the diasporas Put emphasis on global entrepreneurs and innovators Increase China’s global talent population percentage Set up a Chinese Immigration Bureau

36 V. Further Global Talent Cooperation Ideas
Bilateral and Multilateral Cooperation on Global Talent Movement Establish mechanism, to promote the talent development and talent use cooperation ,to cultivate more internationalized talent, and to promote the talent circulation in area. FTA : Free Talent Agreement between Governments Talent Exchange Platform set by Governments or NGOs Government Talent Dialogue

37 Second Track Bilateral Talent Movement Roundtable
Roundtable on Sino-US Global Talent Movement in Aug, 2013 , Beijing Organized by Center for China and Globalization

38 Second Track Bilateral Talent Movement Roundtable
Sino-Canada Human Resources Dialogue June 2013,Beijing Co-organized by CCG,CAPS , SAFEA and AFPC

39 Multilateral Discussion on Global Talent Movement
International Roundtable Forum on Global Talent in Singapore in June ,2013 IOM Roundtable in Beijing, China Sep,2,2013 with Mr. Swing, Director General of IOM

40 Capacity Building For Migration Management in China Project Phase II, Sept. 5-6, 2013,Beijing
The Capacity Building for Migration Management in China Project (CBMM-China) Phase II is a joint undertaking involving the close cooperation and coordination of IOM, ILO, and the Government of the People’s Republic of China (PRC), the European Union (EU), and various EU Member States (MS). The forum is to further promote the development of Europe-China cooperation and exchange on migration management issues, as well as to decrease the talent movement barriers.

41 Global Summit on Migration and Development ,Oct 3 ,2013,New York
Next month, the UN General Assembly in New York will host a two-day global summit on migration and development beginning on 3 October. This second high-level dialogue will aim to identifying concrete measures to strengthen coherence and cooperation at all levels, with a view to enhancing the benefits of international migration for migrants and countries alike and its important link to development, while reducing its negative impacts.

42 Establish a New WTO -- World Talent Organization New Roles can be Played by Metropolis

43 Thank you ! 王辉耀 Wang, Huiyao PhD Senior Fellow Harvard Kennedy School
Director General Center for China and Globalization Web: Tel: ,

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