Archives January 2013

College graduates pursue ‘China dream’

While most Chinese college graduates were vying for posts in the civil service, four young men chose to build their “China dream” by starting a business, a source of encouragement for many of the country’s netizens.

Tan Longchao, Ma Nan, Chen Zhe and Tang Ming opened a shop that sells native products at the end of 2011, after graduating from Beifang University of Nationalities in northwest China’s Ningxia Hui autonomous region.

The sales volume of their store, “Dream Sweet”, reached 1 million yuan ($160,000) last year. As a shop and a distributor they have signed contracts with more than 20 other companies, and become the general agent for nearby provinces.

The success story has led to wide discussions on the Internet.

During the college graduation and recruitment period, some young Chinese have been inspired to pursue their dreams.

This is in contrast to the news that up to 2,900 undergraduates and 29 postgraduates applied to be sanitation workers in Harbin, Northeast China’s Heilongjiang province.

“After hearing about the Harbin story, I felt disappointed for the younger generation of our country. The four young men from Ningxia offer hope and I believe many youngsters will be inspired.” said a netizen named “Xiaobudian”.

On his blog, “Xiaodong” said, “I was hesitating about starting my own business but I know I will be halfway to success if I am brave enough to follow my dream.”

Just like other college graduates, Tan and his business partners were expected, by family and friends, to become public servants, which could have ensured them a stable life.

“My family was confused and disagreed with me when I first wanted to start the business,” said Tan, “they said I was wasting my time and tried to persuade me to apply for village official roles.”

According to Tan, all four got permission from their families to continue the business by showing them the sales volume in the first month, 30,000 yuan ($4,827).

The partners invested all the money they earned last year to develop the business.

“Earning money and finding a stable job should not be seen as a symbol of growing up. For us, doing something that we are passionate about is the way to become more mature. We are satisfied that we didn’t lose any money in the first year, and we have gained experience in marketing and running the business.” Tan said.

According to Ma Nan, the sales target for this year is 3 million yuan ($483,000). “Whether our business is successful or not, we have learned something and grown up during the process. That was the original intention of starting the business.” Ma said.

According to statistics, the number of civil servant applicants surpassed one million each year since 2009. The number is expected to top 1.56 million this year. Some web users expressed concern with this.

A netizen named “Lixiaoguan” wrote, “With so many young people giving up their dreams and potential, who will realize the ‘China dream’?”

Liu Xiaocheng, a teacher from the school of journalism and communication of Lanzhou University said, “Starting a business is not the only way to realize a dream, but seeking a stable life is definitely not a favorable trend.”

He added, “Increasing the fairness of the social welfare system and providing a more flexible policy of becoming a civil servant will be great encouragement for young people to pursue their own dreams.”

Civil Aid Service recruitment drive to run until February 4

Hong Kong (HKSAR) – The Civil Aid Service (CAS) invites people who are interested in serving the community and undertaking various emergency duties to apply to join the service. The recruitment drive will end on February 4.

The CAS is a government auxiliary emergency service established under the Civil Aid Service Ordinance. The primary duty of the CAS is to provide civil support services during emergencies.

The CAS works closely with other full-time disciplinary forces in undertaking a wide range of emergency duties during natural disasters such as typhoons, floods and landslips, rescuing hikers in distress and fighting hill fires.

CAS members are also deployed for crowd management duties at major public functions and patrolling in country parks and hiking trails.

Members may be required to perform cadet management and youth training duties if they are deployed to the CAS Cadet Corps.

Hong Kong Special Administrative Region permanent residents aged 16 or above, who speak fluent Cantonese and read Chinese, are welcome to apply to enrol. Applicants under the age of 18 should include their parent or guardian’s written consent in their applications.

Recruit selection procedures will include a functional and fitness test, a written test on use of Chinese and English, an interview and a medical examination. Completed enrolment forms should reach the Records Office, 4/F, CAS Headquarters, 8 To Wah Road, Yau Ma Tei, Kowloon, on or before February 4.

The enrolment form ¡]CAS 17 (Rev 1/2012)¡^ can be downloaded from the CAS website (www.cas.gov.hk) or obtained at the reception counter, G/F, CAS Headquarters.

For enquiries, please send email to casenq@cas.gov.hk or call 3651 9383 or 3651 9375.

Source: HKSAR Government

China pollution makes recruiter’s job more difficult

Air pollution in China is driving away foreign talent from some key cities, including the capital city of Beijing, and making it harder for multinational firms to persuade their employees to relocate there, hiring managers said.

“They are not familiar with the place and the country, so the heavy pollution is an important factor for them to consider,” said a senior executive at Antal International Germany in an e-mail interview. Antal International is a global recruitment firm working with multinational companies. The services offered by its German office includes recruiting foreign executives to work in China for large carmakers such as BMW, Audi and Volkswagen.

“Air pollution is becoming a real issue among expats working with Audi and BMW. A senior lawyer has asked to be transferred out of the area very recently,” said Richard Adam, a managing partner at Antal International Germany who regularly hires western talents to work in Asia.

The difficulty of finding people to fill in positions in Chinese cities, on a scale of 1 to 10, was rated as 6, by Adam.

And while there seems to be few concerns expressed when it come recruiting westerners to the Shanghai, China’s financial hub, 60 per cent of those negotiating the possibility of working in Beijing and other Chinese industrial cities mentioned air pollution or health issues as a one of their top concerns, according to Adam.

“Life balance and health is getting more important and people take environmental issues into consideration. Nobody is going to ruin his or her health when there are job alternatives under better conditions. When people can choose, they take what is good for them, and money cannot compensate for health,” he said.

Sending someone from a “better” place to a less attractive one with a lower quality of life does not necessarily mean the person will get monetary compensation as the cost of living might be cheaper, said Adam. Yet after what happened to Beijing recently, the situation “might change”, he added.

On Saturday, a Beijing air pollution index measuring particulate matter with a diameter of 2.5 micrometres (PM2.5) hit levels as high as 400 in some areas of the city. A level above 300 is considered hazardous, while the World Health Organisation recommends a daily level of no more than 25.

Foreigners who work in “obviously polluted areas” could expect to be paid 5 to 12 per cent more than those working in a comparable position in places with a better environment, Adam said.

While international firms may have to pay more to attract foreigners to locate in China, Chinese candidates, however, said pollution and environmental issues were not a key concern when relocating to Beijing from other inland cities.

The opportunities, salary level, and exciting working environment of a first-tier city usually outweigh the inconvenience of poor air quality for Chinese employees, according to Antal International China.

Seek increases share of Chinese job site Zhaopin

Job seeking website Seek has increased its share in Chinese employment site Zhaopin. The company’s equity interest will increase from 55.5% to between 72.3% and 79%.

The announcement:

SEEK Limited (“SEEK”) today announced it has entered into a share purchase agreement to increase its ownership stake in Zhaopin Limited (“Zhaopin”).

Zhaopin operates a leading online employment marketplace in China and this transaction is part of SEEK’s continued strategy to increase its exposure to leading international businesses. SEEK’s equity interest will increase from 55.5% to between 72.3% and c79% depending on the level of take up from certain shareholders.

Jason Lenga, Managing Director of SEEK International and Director of Zhaopin, said “Zhaopin is a leading player in many of China’s geographic regions and across several key online operating metrics. As China’s urbanisation and internet penetration increases, we expect it will be the world’s largest online employment marketplace.”

When comparing the 2012 financial year to 2011, Zhaopin’s financial performance has been strong, recording revenue growth of 28% and EBITDA growth of 70% (FY12 v FY11).

Zhaopin’s local management team has performed well in achieving these results and leading a highly successful business. SEEK fully support the local team’s ability to lead the way going forward.

Mr Lenga said, “Despite a recent slowdown in China’s economic conditions, Zhaopin’s team has demonstrated a deep understanding of local conditions and their needs. The business will continue to invest appropriately to drive Zhaopin’s growth and focus on leading the company to a potential IPO.”

“This transaction is an important step in expanding SEEK’s exposure in key international markets as well as a compelling growth opportunity for SEEK’s shareholders.”

SEEK’s equity interest in Zhaopin will depend on the take up levels from other shareholders based on SEEK’s offer to acquire additional shares. However, it is expected that SEEK will increase its current interests from 55.5% to 72.3% to c79%. There is a provision that SEEK may acquire further ownership interests in Zhaopin in FY14.

The acquisition will take place via a sell down of shares from Macquarie and other individual shareholders.

The Judge Group Partners With the Shanghai Government to Co-Launch IT Services Exchange Program

The Judge Group and the Shanghai Information Service Outsourcing Development Center, an affiliate branch of the Shanghai municipal government, have co-launched the U.S.-China IT Services Exchange Program 2013 to help U.S. and Chinese businesses exchange supply and demand information and promote partnership in both markets.

U.S. and Chinese companies seeking to conduct business in both countries and with demonstrated interest in overseas IT and Business Process Outsourcing will have the opportunity to build mutually beneficial relationships.

Judge and the iISO will host events for participating companies to explore potential partnerships. Events will be held in Shanghai in April, June and October and in select U.S. cities in November. Judge will select the participating U.S. companies and facilitate the U.S.-based events. The iISO will reimburse participating companies for their travel expenses and facilitate travel and accommodations in China.

“Judge has been conducting business in China since 2008, and we have been very successful in building a relationship with the Shanghai government,” said Martin E. Judge, Jr., CEO and founder of The Judge Group. “We are very proud to have been selected to be their exclusive partner for this program. It’s truly a privilege for us to have the opportunity to help other companies establish partnerships abroad.”

For more information about participating in the U.S.-China Services Exchange Program, contact Eric Qiu at (+1) 571-230-2911 (U.S.), (+86) 135-0178-2375 (China), or eqiu@judge.com.

About Shanghai and the Yangtze Delta Metropolitan Area:

Shanghai, a megacity of 20 million, is located at the tip of the Yangtze River Delta Metropolitan Area in eastern China. It is one of the most modern and business-friendly Chinese cities to U.S. investors and has been home to over 3,500 U.S.-invested businesses. Yangtze River Delta Metropolitan Area, with a total population of 150 million living in Shanghai and a cluster of tier-2 and tier-3 cities about an hour away, is one of the most prosperous regions in China.

About The Judge Group:

The Judge Group, established in 1970, is a global leader in professional services that provides technology consulting, staffing solutions, corporate training and human capital management. Our solutions are delivered through an annual workforce of 4,500 professionals and a network of locations across the United States, Canada and Asia. If you would like to learn more about The Judge Group, visit www.judge.com or call toll free (800) 650-0035.

The Judge Group was recently ranked the 17th Largest Information Technology Staffing Firm in the U.S. by Staffing Industry Analysts.

The Judge Group logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14430

Man pays Chinese company one fifth of his salary to do his job for him

A US employee is said to have outsourced his job to China.

A security check on a company revealed that a member of staff had been paying a fifth of his six-figure salary to a firm in Shenyang to do his job for him, reports BBC News.

The software developer spent his work day surfing the web, YouTube and eBay.

Andrew Valentine of operator Verizon said that the scam came to light when the US company asked Verizon for an audit after a suspected security breach and asked the risk team to investigate some irregular activity on its VPN logs.

An active VPN connection was found from Shenyang to the employee’s computer and Verizon was called to look into what was thought to be malware used to share confidential information with China.

The employee’s computer contained hundreds of invoices from the Shenyang contractor, it has been reported.

Valentine said: “Authentication was no problem. He physically FedExed his RSA token to China so that the third-party contractor could log-in under his credentials during the workday.

“Evidence even suggested he had the same scam going across multiple companies in the area.

“It looked like he earned several hundred thousand dollars a year, and only had to pay the Chinese consulting firm about $50,000 annually.”

Chinese companies want more staff

China tops any other Asia-Pacific market in its number of companies that plan to hire more employees, a report says.

Nearly 56 percent of organizations interviewed for a report by the global human resources company Hudson, said they plan to increase the number of permanent staff in the first quarter of 2013.

The enthusiasm to hire comes amid the recovery in the growth of the Chinese economy and an increasing number of multinationals moving their regional headquarters to China, said Lily Bi, general manager of Hudson Shanghai.

The salaries offered to talented workers will also increase, Bi said.

“International giants and local companies are attaching more importance to research and development work. Therefore, talented professionals have plenty of opportunities, especially in the pharmaceutical and automotive industries,” said Bi, stressing that higher salaries offered to sought-after workers is another trend taking shape in the Chinese job market.

Multinational companies moving their headquarters to China, Shanghai especially, have also helped to create more jobs.

According to statistics provided by the Shanghai Municipal Commission of Commerce, as of September 2012, around 60 multinational companies had Asia-Pacific or Asian headquarters in Shanghai.

The pharmaceutical and biologics company AstraZeneca moved its Asia-Pacific headquarters from Singapore to Shanghai in June. McDonald’s and Ikea have also moved their Asia-Pacific headquarters to Shanghai.

Although its economic growth slowed in 2012, China is still the second-largest economy in the world. The central government forecast that the country’s GDP will grow by 7.5 percent in 2013 and its unemployment rate will remain stable at around 4 percent.

China is now the world’s fastest-growing automobile market and skilled professionals are needed to sustain expansion, particularly in smaller cities. Salary packages are becoming more streamlined and bonuses are down, but candidates are ambitious and looking for increments of up to 25 to 30 percent to switch roles, the report said.

Guo Yating, 32, with three years of experience as an automotive research and development engineer, moved to AVL, an Austrian-based automotive consulting firm, in December with a 50 percent salary increase and a 10-day extension of annual leave to 15 days.

“Frankly speaking, the chances were far scarcer in 2011 and 2012 when the economy, especially the manufacturing industry, was pretty lousy. It was quite difficult for fresh graduates to get a job. But on the contrary, R&D engineers with experience have been receiving more enquires from headhunters in the previous two years,” Guo said.

Bi from Hudson said salary increases will also be offered to people working in newly opened positions, even though they are in older sectors such as the advertising industry.

“Employees with expertise in digital and new media, e-commerce and social media may receive increments of up to 20 percent,” she said.

Li Daifei, 28, a project manager at a Shanghai-based advertisement agency, was offered her current job at the end of 2012, which saw her salary rise by 40 percent. Her experience with digital media helped her make the switch.

Labour dispatch services in China will provide less flexibility from 1 July 2013

From 1 July 2013, the use of labour dispatch services will likely be a less attractive means of maintaining a more flexible workforce. Companies taking dispatched employees will need to comply with an “equal pay for equal work” principle, and the range of positions for which they can engage dispatched workers will be limited. The registered capital requirement for labour dispatch service providers will also be increased four-fold. Forward planning for both labour dispatch services providers and companies that use dispatched employees is recommended.

Changes to China’s labour dispatch rules were enacted on 28 December 2012 by way of amendments to China’s Labour Contract Law. The amendments will be effective from 1 July 2013. For comment on the draft amendments that were circulated for public comment in mid-2012, please see our July 2012 e-bulletin.

Background

Labour dispatch practices involve a business choosing to outsource workers from third-party dispatch agencies rather than directly employing the workers. This can result in cost-savings and make it easier to terminate the relationship with the worker.

New provisions

The Labour Contract Law amendments introduce a number of changes, some of which are consistent with those in the draft amendment circulated in mid-2012. The first four changes listed below were not in the mid-2012 draft, while the remainder of the changes noted below are substantially the same as those in the mid-2012 draft:

• The registered capital of a labour dispatch company must be at least RMB2,000,000. This represents a four-fold increase from the current requirement of RMB500,000. Companies currently providing such services will need to increase their registered capital in order to provide further labour dispatch services.

• A labour dispatch company must have permanent business premises and facilities that are suitable for the conduct of their business. While it is unclear exactly what this will mean in practice, any existing dispatch service provider would be wise to carefully review the new requirements before renewing their leases.

• Employment by labour dispatch is only a supplemental form of employment for Chinese enterprises, with directemployment by labour contract being the basic form of employment. Identifying labour dispatch as supplementary is aimed at preventing the overuse of labour dispatch.

• The number of dispatched employees engaged by an employer may not exceed a certain percentage of its total number of employees. The exact percentage, however, is yet to be stipulated by the labour administrative authority under the State Council.

• To engage in labour dispatch, a labour dispatch company must obtain a permit from the relevant labour bureau. Labour dispatch permits had been explicitly required prior to 2008. However, when the PRC Labour Contract Law came into effect in 2008 it did not include a permit requirement. Under the new rules, a labour dispatch company established before 1 July 2013 will clearly be required to obtain a labour dispatch permit by 1 July 2014 in order to take up new labour dispatch business. Such labour dispatch companies will need to ensure that their registered capital and business premises comply with the new requirements.

• Workers can be dispatched only for “temporary, auxiliary or substitute positions”. Temporary positions cannot be for longer than six months; auxiliary positions are those that support the main business line; and substitute positions are for covering employees on vacations or study leave. The current rules, by contrast, are generally taken to permit long-term dispatch relationships in a wide variety of positions. This amendment emphasizes the supplemental nature of labour dispatch and is aimed at preventing labour dispatch from being a substitute for direct employment.

• The amendments require equal pay for equal work; that is, the same remuneration standard should apply to both dispatched employees and directly hired employees. Any existing labour contracts and labour dispatch agreements that are inconsistent with the “equal pay for equal work” requirement will need to be amended.

• Employers and dispatch agencies violating the law may be fined between RMB5,000 and RMB10,000 per dispatched worker if they fail to correct the violations within the time period specified by the relevant labour bureau.

Under the new rules, employers that have been relying on dispatched workers might be required to directly employ more workers. This would increase payrolls, and make future down-sizing more difficult and more expensive.

New Hyundai Chinese R&D center may be located in Yantai, Shandong

In order to keep up with its rivals in China, Hyundai also has plans to establish a new research and development center in the country. According to a report appearing in the International Finance News, the center may be located in the Economic and Technological Development Zone of Shandong’s eastern city of Yantai.

Earlier in May, Hyundai Motor Group Vice Chairman Xue Rongxing had announced that the manufacturer will construct a Chinese R&D center. Then, earlier this month, posts looking for talent to work at the ‘Hyundai Motor (China) R&D center’ begun appearing on several famous employment websites. According to the post, the center’s address is in Yantai, Shandong. When contacted by telephone, sources from the company confirmed that the posts were made on behalf by Hyundai.
Meanwhile, representatives from the Yantai Investment and Employment Agency announced that preliminary work on the Hyundai R&D center has begun in the city’s Economic and Technological Development Zone. The source added that Hyundai has yet to announce when the center will be officially established.

Hyundai’s Chinese offices have yet to comment on any of the above reports.

Hyundai currently possesses five global R&D centers, located in its native South Korea, Germany, the US, India and Japan, respectively. Due to the lack of such a center in China, the Beijing Hyundai joint venture has obtained new vehicles, such as the new ix35 and eight generation Sonata, from Europe and the US. Mr. Xue has stated his desire to see Beijing Hyundai begin exporting vehicles following establishment of the Chinese R&D center.

DFA warns of tougher China law on illegal workers

China’s new immigration law, which will take effect on July 1, 2013, will impose stiffer penalties on those found to have violated it, the Philippine Consulate General in Guangzhou warned on Thursday.

In a statement sent by the Department of Foreign Affairs, the Consulate said the new immigration law provides particular attention to the so-called “three illegals” – illegal entry, residence and employment. Each violation is penalized with different and more severe penalty.

“Foreigners found illegally working in China may be subjected to a fine raning from RMB (renmibi) 5,000 to RMB20,000. Possible detention of five to 15 days may also be imposed for serious violations. Income acquired from illegal employment will also be confiscated. Illegal residents will be fined from RMB500 per day up to a maximum amount of RMB10,000, or imprisonment of five to 15 days,” the statement said.

Under the new law, employers who hire foreigners without the proper permits and documentations will also be penalized.

The new law also provides fine and penalty of imprisonment to persons or organizations aiding foreigners in committing any activities defined under the so-called “three illegals.”

The Consulate urged Filipino nationals affected by the changes in the immigration law to contact the Consulate for advice. The public is also warned about agents misrepresenting themselves as processors of exit visas for overstaying foreigners.