Working in China- The Facts and Figures
Benefits of working in China
In the next few years China will become one of the top two largest economies in the world. Many multinational companies are still relocating to China and other companies who are already located in Asia are moving their Asian headquarters to China.
The market in China is still buoyant and as certain sectors open up, such as Banking & Financial Services, Accounting and Legal there will continue to be demand for foreign talent, particularly if they have the language skills.
Economy & Job Market
What is the background to the current local job market situation?
China rapidly rose to become the world’s third-largest economy. The booming economy has made it into one of the most candidate-short markets in Asia, facing some of the highest salary inflation and staff turnover rates in Asia. The market is fairly buoyant and many companies are still moving to China and setting up offices.
How easy is it for international candidates to find employment?
The first preference for companies is to recruit local candidates who are bilingual and who have experience of working in multi-national corporations (MNCs). The second choice is for Chinese “returnees” who are ethnic Chinese with experience of working abroad. For certain niches, skill sets and some top-level management positions, there are openings for expatriate staff. To employers, the ideal expatriate worker would have the right mix of technical experience, soft skills and bilingual skills. Skills in demand include technical skills (including both IT and complex manufacturing processes), financial skills (including CPA credentials and expertise with Generally Accepted Accounting Principles (GAPP), international marketing experience, financial managers who are familiar with WTO rules, and experienced lawyers who are experts on international trade laws. Increasingly, companies are localising and are not offering housing packages and assistance with school fees. Foreigners with experience of working in China who are bilingual will be considered for many managerial roles, but increasingly they are being offered local packages, which may include some benefits such as housing or tax incentives.
What language skills are required?
Fluency in written and spoken English is a necessity and a certain level of Mandarin is an advantage. The best-paying jobs require the ability to speak Mandarin. Positions that require fluent spoken and written Mandarin tend to pay more than the same job without the language requirement.
Which job functions and industries are the most in demand?
At present, experts in the Banking & Financial Services industry are most in demand as China opens up this sector to foreign companies. There is strong demand for these individuals with expertise in:
Banking & Financial Services
- Risk Managers
- Compliance
- Anti-money Laundering Managers
- CEOs in the Consumer sector
- Product Sales/Expertise in Cash Management, Trade Finance and Treasury products
- Experienced relationship managers/Private bankers with the connections to be able to develop their own portfolio of clients
Accounting & Finance
- Finance Directors (Retailing & Fashion brands)
- Commercial Directors (Media & Advertising)
- Finance Directors (FMCG)
- Financial Controllers
Legal
Private practice:
- Managing Partners
- Senior Equity Partners
In house:
- General Counsel
- Assistant General Counsel
Human Resources
These roles usually require Mandarin:
- Asia- Pac Training & Development Heads
- Employee / Industrial Relations Managers
- HR Compliance & Risk Management Managers
- Organisational Development Managers
- Talent Management Managers
- Compensation and Benefits Manager/Directors
- HR Consultants
Advertising & Communications
- Creative Director
- CEO roles
Sales & Marketing
These roles require experience of working in Asia:
- Media Planners
- Operation Managers
- Media Buyers
Healthcare & Life Sciences
Manufacturing & Industrial
- Sales Managers at GM, Director and regional level
- Strategic Marketing Managers
What types of companies recruit international candidates?
Foreign-invested enterprises, as international firms are called, employ about 85% of the expatriate workforce. Approximately, 40% of the jobs are in sales and marketing; 20% in engineering; 10% in management, including accounting and finance; and IT jobs make up about 5%. Only a small percentage of expatriates work for Chinese companies, primarily as engineers or managers in high-tech manufacturing firms.
How does Hudson work with international candidates? Some of you have already expressed your interest for working in China, this preference is now flagged and if a job opportunity matching your skills sets arises, a Hudson Consultant will contact you for a confidential discussion.
In addition, it is very important when looking for opportunities in China to sign up for the Hudson Job Alerts service. Targetted job opportunities will then be sent automatically by email.
Job opportunities can also be found on the job search page the applicant has all the suitable qualifications.
Work Permits
Visa / Work Permits / Residence Permits
Foreigners who want to work in China should first approach an employer who has an employment license for foreigners, issued by the relevant labour administrative bureau.
Employees who want to work in China should apply for the Working Visa (Z) at their local Chinese embassy. This visa type is issued to foreigners who will be employed in China and their accompanying family members. It is an entry visa and as such must be exchanged for a Residence Permit within 30 days of entry into China. The residence permit is tied to the employer. If an employee changes employers whilst in China, they will have to apply for a new residence permit.
All foreign nationals working in China require a work permit. The application should be made on the employee’s behalf by the employer.
When applying for a visa, employees will be asked to provide:
- A completed visa application form. The form can be downloaded from the official website of the Chinese Embassy, or obtained from the local embassy or consulate.
- Two 2' X 2' passport photos showing the applicant's full face.
- A Health Certificate.
- Current passport, which must be valid for a minimum of six months from the date of travel and must have more than two blank visa pages remaining.
- Employment License from either the prospective employer in China or from the provincial or municipal labor authority, accompanied by a letter from the employer confirming employment in China.
The Chinese government does not recognise dual nationality and visa requirements for Hong Kong are different than those for the People's Republic of China. Foreigners working in China for more than one year must submit a notarised health certificate.
The employer can assist on obtaining the spouse’s residence permits in China.
The spouse has the right to look for jobs while staying in China and his/her employer will be responsible for his/her working permits in China.
Housing/ Accommodation
Most apartments will be fully furnished, although leaseholders will often be given the opportunity to choose what furniture they would like to keep and what they would like to have replaced. Kitchen appliances are usually included. Serviced apartments may include extra services such as a concierge service, fitness centre and a maid service.
In major cities, there are many options available catering to all budgets. Foreigners living in Shanghai and Beijing for example, can expect to pay anything between RMB 2,000 (for a one-bedroom apartment) to 80,000 or more (for a villa in an expatriate complex) per month. Real estate prices (both for rental and purchase) have been steadily rising in China’s major cities.
The recommended way to find accommodation is to use a property agent:
http://www.xinzun.com.cn
http://www.metropolis-sh.com
http://www.entershanghai.info/find-a-home/index.php
http://www.century21cn.com
http://www.homelink.com.cn
http://www.shanghaiprops.com
Pay and Tax
Pay and benefits
Please refer to the salary information.
Tax
Any non-Chinese passport holder working for a local company, a foreign company or a wholly foreign-owned enterprise in China needs to pay tax.
Employees who live and work in China for more than 183 days a year, will be liable to pay Chinese taxes on all income received whilst in the country. Personal income tax is charged on a sliding scale, ranging from 5% to 45%. If an employee also receives income from overseas, they will be taxed in China on their worldwide income, with a tax credit given against any tax already paid in other countries.
The first RMB 4,800 pay each month is tax free.
Tax payable = (Your salary – RMB 4,800)
The monthly tax on income is as follows:
% Tax Rate |
Taxable Earnings (RMB) |
| 5% |
1 - 500 |
| 10% |
501 - 2,000 |
| 15% |
2,001 - 5,000 |
| 20% |
5,001 - 20,000 |
| 25% |
20,001 - 40,000 |
| 30% |
40,001 - 60,000 |
| 35% |
60,001 - 80,000 |
| 40% |
80,001 - 100,000 |
| 45% |
100,001 and above |
Tax is deducted from an employee’s pay each month by the employer and is then paid to the government.
Education, Healthcare and Pensions
Schools
The range of international schools available in Shanghai is impressive and it is likely that children will be able to follow the curriculum and school system of their home country.
Tuition fees and the overall costs of sending a child to an international school in China can be expensive, with many costing as much as US$20,000 per year, though this cost may be covered by the employer as part of the employment contract.
http://www.aisb.com.cn
http://www.isb.bj.edu.cn
http://www.saschina.org
http://www.aisgz.edu.cn
http://www.ycis-bj.com
http://www.bcis.cn
http://www.ycis-sh.com
Healthcare
Most employers will offer a private healthcare insurance plan for their foreign employees.
Before any extended trips to provincial areas of China, a medical and dental check-up is advisable and it is recommended to have your injections for tetanus, diphtheria and polio up-to-date.
There are adequate hospitals and clinics available in most major cities, though it is advisable to obtain private medical insurance.
http://www.seimc.com.cn
http://www.internationalsos.com
http://www.unitedfamilyhospitals.com
Pension
Expatriates are not able to join the Chinese social security scheme.
Large multinational company normally will provide membership of a corporate pension scheme. There are many pension providers, including the international banks, who offer personal pension schemes.
Other Information
Banking
It is advisable to have a local bank account. The four large banks are Bank of China, Industrial and Commercial Bank of China, Bank of Communications and Agricultural Bank of China. Banks are open weekends as well as week days.
Deposit and savings accounts are easy to open with domestic banks with a minimal deposit, and US dollars or RMB can be used to open the account. A cash card for the bank’s ATMs can be issued immediately.
ATM machines are common in Shanghai and many banks are linked to the Visa, Mastercard and Cirrus networks. There is a limit of RMB 2,500 per withdrawal but you can withdraw a number of times over from the same machine with a total limit of RMB 20,000.
Global banks also have branches in big cities in China (Beijing, Shanghai and Guangzhou). Visit the following websites for more information:
http://www.citibank.com.cn
http://www.standardchartered.com.cn
http://www.hsbc.com.cn
Domestic help
Domestic helpers are very inexpensive to hire. Information can be obtained from:
http://english.gov.cn
http://www.12333sh.gov.cn