China's Transformation, National Talent Strategy and the Opportunities for

Overseas Talents” WANG Huiyao PhD

王辉耀Vice Chairman

China Western Returned Scholars Association Director General

Center for China and Globalization

Washington DC July 31, 2010

1. China’s Economic TransformationChina From past 30 years to Future 30 years

• From Labor Intensive to Talent Rich ( 从人口红利到人才红利）

• From Made in China to Created in China （从中国制造到中国创造）

• From Attract Capital to Attract Talents ( 从招商引资到招才引智）

• From hardware to software ( 从重硬件到重软件）• From Investment driven to talents driven( 从投资

拉动到人才拉动）• From using domestic talents to international

talents ( 从面向国内人才资源到面向国际人才资源）

2. China National Talent Plan (2010-2020)

• Chinese President Hu Jintao addresses a CCP and State Council conference on national talent held from May 25 to May 26 in Beijing. Hu has called for the creation of a more competitive and innovative talents in the country, with the focus on training more top-notch specialists.

China National Talent Plan (2010-2020)

• The plan will increase the ratio of citizens with a higher education background in the work force from 9.2 % in 2008 to 20% by 2020.

• The plan stresses six categories of talents 1) political leaders, 2) entrepreneurial talent, 3) professional talent, 4)high skilled talent 5 ） agricultural talents and 6)social work talent.

• Total talent pool from currently 104 million will increase to 180 million by 2020.

China National Talent Plan (2010-2020)

• The plan includes a key goal of increasing the ratio of researchers from 25 per 10,000 in 2008 to 43 in 2020. By 2020, the ambition is to have 3.8 million researchers — and 40,000 high-level scientists leading innovation.

National Strategy, Talent Change China

National Strategy, Talent Change China

Opportunities for overseas talents

• Attracting foreign talent into China will be China’s new focus, through attractive packages including government special program, incentive programs and Thousand Talents program

• China will also explore some new policies such as green card for foreign residents, open up for technical immigration and relax issuing visas for overseas talents.

• Dual citizenship issue is discussed more in China, as India, South Korea and even Viet Nam started to recognize dual citizenship.

New Thousand Talent Program

• Started at the end of 2008, Chinese government launched most liberal and ambitious Thousand Talent Program

• In 5 to 10 years time, China central government will attract 2000 top level overseas scholars, scientists and entrepreneurs and senior MNC managers

• Beijing, Shanghai, Tianjing, Guangdong, Jiangsu, Zhejiang, Fujian, Shangdong, Liaoning will each attract 1000 top level overseas talents for the same period

New Thousand Talent Program

• 7 月 29 日，中共中央政治局常委、中央书记处书记、国家副主席习近平在北戴河看望在这里休假的“千人计划”入选专家代表，与他们进行座谈并讲话。新华社记者 姚大伟 摄

China’s other programs on overseas talents

• Started 1998, Changjiang Scholars Program, ( 长江学者计划） 14000 scholars awarded for making services to over 130 universities in China

• Started 1997,Spring Light Program, （春晖计划） 12000 returned on short term basis for the service

• Started 1994, Hundred Person Program by Chinese Science Academy （百人计划）

• There are also 150 returnee entrepreneurial parks （创业园） set up in China and over 10000 enterprises set up by returnees

China’s other programs on overseas talents

人社部• 海外赤子为国服务行动计划• 留学人员科技活动项目择优资助• 留学人员回国创业支持计划• 高层次留学人才回国资助计划教育部• 教育部长江学者奖励计划• 高校学科创新引智计划• 教育部春晖计划• 教育部新世纪优秀人才支持计划中科院• 中科院百人计划• 中科院创新团队国际合作伙伴计划自然科学基金委• 自然科学基金委杰出青年计划

China’s past programs on overseas talents

人社部• 海外赤子为国服务行动计划• 留学人员科技活动项目择优资助• 留学人员回国创业支持计划• 高层次留学人才回国资助计划教育部• 教育部长江学者奖励计划• 高校学科创新引智计划• 教育部春晖计划• 教育部新世纪优秀人才支持计划中科院• 中科院百人计划• 中科院创新团队国际合作伙伴计划自然科学基金委• 自然科学基金委杰出青年计划

Overseas Talent roles in China’s Economy

• Bringing Technology, Internet and Hi-Tech

• Listing Chinese Enterprises Overseas, including most of them in Nasdaq

• Leading Venture Capital Firms

• Helping Chinese Firms Going Global

• Heading Global Investment Houses

• Managing MNCs such as Microsoft, UBS, Google, Novartis, Blackberry etc..

• Introducing New Management Practices to China,

Returning talent successful factors 1.Better Education

-- 48% PhD, 35% master’s,12% visiting scholars,5% bachelors

2 .Hi-Tech Focus

--70% in high-tech sectors, 20% in consulting, legal services, education etc.,5% manufacturing, less than 1% in the real estate.

3.Overseas Experience

-- on average about 5 years overseas before returning.

4.Team Building Culture

-- 95% of these successful returnee enterprises have a management team of at least three returnee members.

Returnees successful factors 5 Social Network -- 80% of the successful returnees had been involved in

at least one of different associations, chambers, industry organizations, alumni associations, enterprise parks, or returnee visiting clubs.

6. Venture Capital -- VC is crucial in helping returnee startup success,

especially for these listed on global market. 7 . The Optimal Age -- on average they set up their own business around 35

years old8. Geographic Impact -- 54% of the returnee entrepreneurs came back from

the US, 23% from Europe, 10% from Canada, 9% from Japan and 3% from Australia.

Talents Circulation Business Model

Brain Drain Theory (J. Bagwati, 1976)

Brain Gain Theory (R. Lucas 1990)

Brian Circulation ( A. Saxenian 2000)

• Model: ex-country talents study abroad work and based in Silicon Valley frequently bring technology & experience back to home country

• Proposed Seagull model ( 海鸥模式） : ex-country talents study abroad work in Western countries bring transnational social capital to return to home country go abroad again to launch new IPO overseas IPO companies go back home country again to do business

Some case studies

Three Presidents of Huan Yuan Science and Technology Association in Silicon Valley

1. Chen Hong, Investment banker

2. Zhu Min, entrepreneur and angel investor 3. Deng Feng, entrepreneur and venture capitalist

Conclusion As China transform its economy from

investment driven to talent driven, there will be more opportunities

• China’s National Talent Development Plan will give China a new momentum to deepen the reform, particularly on the human resources system and create a new awareness on talents

• In the next 10-20 years, will see more overseas talents go to China to take the advantages of the opportunities offered there

• There will also be more Seagulls between China and outside world

Thank you !

Wang Huiyao ( 王辉耀） PhD

Visiting Fellow

Brookings Institution

Director General

Center for China and Globalization (CCG)

hwang@brookings.edu wanghuiyao@ccg.org.cn