Huiyao WANG PhD王辉耀Director General, Center for China and Globalization

President, China Global Talents SocietyVice Chairman, China Overseas Returned Scholars Association

Senior Fellow, Harvard Kennedy School

September, Tampere, Finland

September 10, 2013

China’s Global Talent Movement & its Implications & Impacts

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 2010-2020. 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.

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

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

2005 2010 20500

100200300400500

191 214

405International Migrants

Mill

ion

(UN DESA, 2009)

High-Speed Flow of Global Migrants

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;

1. From Population Dividend to Talent Dividend 2. From “Made in China” to “Created in China”3. From Attracting Financial Capital to Attracting

Human Capital4. From Hardware to Software5. From Investment-Driven Economy to Talent-Driven

Economy6. From Resources Driven Economy to Knowledge-

Driven Economy7. From emphasis on Science & Technology

Innovation to both S & T and Social Innovation8. From rely on domestic talents to rely on both

domestic and international talents

Eight Transformations in China on Talent

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.

2000 2005 2010 2011 20120

1020304050

3.911.85

28.4733.97

39.96

Number of Chinese Students Went Studying Overseas Each Year (0000)

Source: Annual Report of China’s Study Abroad 2013

ⅰ .Chinese Overseas Students

US-China Students Movement

2007 2008 2009 2010 2011 20120

50000100000150000200000250000

67723 81127 98235127628

157558194029

11,064 13,188 13,674 13,910 14,596

Chinese Students in US US Students in China

According to the newest Open Doors 2012(IIE), Chinese student enrollments increased by 23 % from previous year, from 157,558 in 2010-2011,to 194,029 in 2011-2012.

ⅰ . Chinese Overseas Students

Source: Open Doors 2012(IIE),Ministry of Education of China

Students Exchange Deficit of China

Total Chinese Students Suty

Abroad

Total foreign students study

in China

1,108,800

292,611

2011 Data

Source: Ministry of Education of China

Chinese Obtaining Legal Permanent Resident Status just in 3 countries 2010-2011

America; 87016; 59%

Australia ; 29547; 20%

Canada ;

30197; 21%

Total 146,760

ⅱ .Chinese Global Migration

Source: Annual Report of Chinese International Migration (2012)

Asian rights groups union’s report – In 2011, the Chinese population has reached 4.025

million in USA, is the biggest Asian descent in US– More than 60% of Chinese immigrants ,that is 2.415

million ,have already got US citizenship.

US-China Migration

Application of Chinese Mainland for I-526 Visa

2010 2011 20120

100020003000400050006000

1281 2902

5121

864934

2909

Application Approved

Source: Bloomberg Businessweek ,March 29,2013

The Foreign Expert Working in China by Main Source Country :2008-2012

ⅲ .Foreign Experts in China

Source :State Administration of Foreign Experts Affairs

Returnees Are Rapidly Increasing

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0.00500,000.00

1,000,000.001,500,000.002,000,000.002,500,000.003,000,000.00

0%10%20%30%40%50%

340,000.00

2,644,600.00

130,000.00

1,091,300.00

38.20%

24.30% 28.00%

41.27%

Total Cumulative Number of Students Studying Abroad Total Cumulative Number of Returnees Return Rate

ⅳ .Returnees

Source: Annual Report of Chinese Returnees Development 2013

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.

Migration reason ChinaCareer Development 91.6

Receive Education 90.5Living quality 84.3

Better Infrastructure 82.6Fator Drawing Chinese and Indian Home

Domestic Economic Enviroment Economic opportunities 91.8

Domestic Market 77.8Lower Business Cost 38.0

Government Incentives 22.6To Contribute to Home Economics

Development 52.3Career Development

Better Specialty Opportunity 84.0Better Career Opportunity 87.3

Increase Demand of His Speciality 86.8Better Living Qulity 55.5

Higher Payment and Salary 57.1Personal Comparisons

Family Benefcial 67.0Take Care of Old Parents 78.8

Short Distance to Family and Frends 76.8Children’s Emotion Growth 24.9

Children’s Education 17.6Living Qulity 33.5

Returnees are changing China in various ways

1. Education and Science AreasTalent Type Returnees RatioUniversity 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

• 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.

• 3. Key Players in China’s Hi-Tech Industries and Entrepreneurship

Electronic Technology

39.70%

Biologycal Medicine18.20%

Service Industry10.70%

New Materials7.40%

Environmental Pro-tection 5.80%

High-end equipment manufacturing

5.00%

Others13.20%

Source: Survey of Annual Report of Chinese Returnees Entrepreneurship 2012

• 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

• 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.……

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

Ⅱ. China Global Talent Future Trends

• Talent Movement Speeds up

– More Going Abroad

– More Coming Back

– More New Comers

Lowering Ages of Chinese Students Going Abroad

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 2011 .

2005-2006 2010-201165 6725

Source: US Department of Homeland Security

Students going to study in secondary schools in US

2007-2008 2008-2009 2009-2010 2011-20120

20000

40000

60000

70001500

0

28000

40000

Source: Hong Kong Examinations and Assessment Authority

68.2%

Performance in the Class of the Youth Intending to Study

Overseas

Top 25% 26-50%51-75% After 76%

Yes; 71%

No; 29%

Students in High-School Intention to Study Overseas

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

Lowering Ages of Chinese Students Going Abroad

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.

China is Becoming the New Study Destination of World Students

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 2013 --- the number of China’s outbound tourists may well exceed 400 million in the coming 5 years!

ⅰ. The 18th CPC National Congress:Establish an talent system advantage with

international competitiveness

III. China’s Talent Policy Development

Implement the strategy of revitalizing China through talents.

Speed up the system and mechanism reform of talent development and policy innovation

• 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 (2010-2020)

ⅱ. China’s National Talent Development Plan (2010-2020)

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  28Ratio of Labor Force who Have Higher % 9.2 15 20Ratio of Human Capital Investment of GDP % 10.75 13 15

Ratio of Talent Contribution to GDP                  % 18.9 32 35

• 2008 Thousand Talents Program (千人计划）• 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）

ⅲ. Thousand Talents Program

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

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 ” .

ⅳ Policy Breakthrough

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 4752. 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 .

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 .

4. China’s New Exit-Entry Law New law went to effect at July 1,2013

New exit-entry regulation for foreigners was released in July 23 and went to effect at Sep 1,2013

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

IV. Some Policy Recommendations

V. Further Global Talent Cooperation Ideas

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

Bilateral and Multilateral Cooperation on Global Talent Movement

Second Track Bilateral Talent Movement Roundtable

Roundtable on Sino-US Global Talent Movement in Aug, 2013 , Beijing

Organized by Center for China and Globalization

Second Track Bilateral Talent Movement Roundtable

Sino-Canada Human Resources Dialogue June 2013,Beijing

Co-organized by CCG,CAPS , SAFEA and AFPC

Multilateral Discussion on Global Talent Movement

IOM Roundtable in Beijing, China Sep,2,2013 with Mr. Swing, Director General of IOM

International Roundtable Forum on Global Talent in Singapore in June ,2013

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.

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.

Establish a New WTO-- World Talent OrganizationNew Roles can be Played by

Metropolis

Thank you ! 王辉耀Wang, Huiyao PhDSenior FellowHarvard Kennedy SchoolEmail: huiyao_wang@hks.harvard.edu Director GeneralCenter for China and GlobalizationWeb: www.ccg.org.cn Email: wanghuiyao@ccg.org.cn Tel: 86-10-65611038, 65611039