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VOL.4 March 2012
In Search of Opportunities
Foreign workers heading for China in growing numbers
by Yu Nan

CARD GAME:New system is proving to be popular (XINHUA)

Attracting foreigners

China is pursuing more favorable policies that will help attract more foreigners, while the country welcomed them to work here.

Foreigners in China have enjoyed more freedom in traveling, shopping, accommodation and especially in entry and exit, since the country's own green card system was put into effect in August 2004.

Charlie Martin, former Chairman of the American Chamber of Commerce in China, considered that green cards would grant foreigners more advantages and convenience.  He said it is important to get the permanent residence for foreigners doing business in China. In this way, Chinese business culture and market environment will be easier for them to understand and accept.

The number of people entering and exiting China has increased by 10 percent annually since 1990. In 2010, the number reached 382 million, including 52.1 million foreigners, said the Ministry of Public Security.

China aims to curb illegal entry, stay and employment of foreigners, according to the latest draft law on exit and entry administration submitted last December to the National People's Congress Standing Committee, the top legislature of the country, for its first reading. The draft law said a foreigner shall get work permits and residence certificates for employment before getting employed.

"We will put forth efforts on regularizing foreigners who are working in China, do better in visa issuing, and strengthen residential management of foreigners," said Yang Huanning, Vice Minister of Public Security, in December last year.

Besides, foreigners living and working in China have become more intimately acquainted with the new social security scheme on foreign workers, which took effect in mid-October last year.

Participation in the program means foreign workers' take-home pay will shrink, because part of their wages will be put into the pension fund, and that their employers' costs will increase.

The new costs will cause complaints from a number of foreign companies, but complaints are invalid as it's "an international practice and a product of globalization," according to Li Xiaogang, Director of the Foreign Investment Research Center at the Shanghai Academy of Social Sciences.

Jean-Claude Thergall, a 32-year-old Frenchman, worked for a Chinese company in Beijing for two years. He said he welcomes the new initiative but had concerns.

"Treating foreign employees on equal footing as national citizens is a reflection of China connecting to the globe, but I worried that it would be difficult to claim a refund when I leave China or change jobs, because most foreigners like me do not plan a long stay [in China]," he said.

Project Director James Xu with human resources company Mercer said that problems with the system will be sorted out, as China is on course to improve its existing security net, including security for its own citizens.

Li agreed. However, he admitted that the system needs to be improved to function more efficiently.

"Things need to be improved over time," he added.

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Company Profile
-The Chery on Top
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China Econometer
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-October 2012
-September 2012
-August 2012
 
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