Archives June 2013

McDonald’s hopes to wow Chinese with rice

With an eye on dinner tables in the Chinese mainland, McDonald’s, the world’s leading fast food operator, on Wednesday announced new rice products for the mainland market.

Starting from June 10, the new products, including chicken and beef rice wraps, will be sold in all 1,700 McDonald’s restaurants on the Chinese mainland.

The core menu, including the chain’s staples like the Big Mac and McChicken, will not be changed, Kenneth Chan, chief executive officer of McDonald’s China, said in the press release.

“Our new dining options are examples of how McDonald’s innovates to bring more options to our Chinese customers, because that’s what they want,” Chan said.

The company’s strategy includes more efforts to develop the night consumption market from 5 p.m. to 5 a.m., thought it has put more emphasis on breakfast, lunch and afternoon snacks in the past, he said in an interview with Xinhua.

According to the latest data from McDonald’s, dinner foods account for half of foreign food operators’ sales in China and this market is growing at a double-digit pace.

Meanwhile, McDonald’s will set a series of standards regarding rice quality and safety, Chan told Xinhua. McDonald’s sources the rice it uses on the mainland from Harbin, capital of northeast China’s Heilongjiang Province, one of the country’s major grain production areas.

The company plans to maintain its competitiveness and boost its overall business growth by increasing the variety of the products it offers, he said.

McDonald’s opened its mainland first store in Shenzhen, Guangdong Province, in 1990. It has currently more than 1,700 outlets and over 90,000 employees on the Chinese mainland. It plans to recruit 75,000 more this year, and the number of mainland outlets is expected to reach 2,000 by 2014.

The U.S.-based fast food giant has about 34,000 stores worldwide. In 2012, McDonald’s same store sales rose 3.1 percent as revenues rose 2 percent to 27.57 billion U.S. dollars.

In 2013, the company plans to invest about 3.2 billion U.S. dollars of capital in opening 1,500 to 1,600 new restaurants and reinvesting in existing locations. It targets a system-wide sales increase of 3 percent to 5 percent and operating income growth of 6 percent to 7 percent.

Civil servants are least happy employees in China

Civil servants are the least happy employees in China, research has revealed.

A survey of over 9,000 respondents found that civil servants had the lowest level of job satisfaction of the 12 sector categories that were included.

According to a report on the All-China Women’s Federation website, employees working in the private sector had the second lowest levels, whilst the happiest employees worked in foreign enterprises and joint ventures. The survey was commissioned by the Psychology Institution of the Chinese Academy of Sciences and hosted on recruitment website Zhaopin. Three quarters of those who took it were below the age of 30.

Li Xupei, deputy director of the Mental Health Promotion Centre at the Chinese Academy of Sciences, said some people entering the civil service believed their job would be “easy”, but later found that they were “constantly working overtime” and that the work was unexpectedly challenging.

A 2012 survey of civil servants in China’s central departments of state also found that 13.5% suffered from severe or extreme stress. Despite this, the number of people taking the recruitment exams for the Chinese civil service rose to a record 1.2m in November 2012.

According to China’s Global Times, the Ministry of Human Resources and Social Security has begun a pilot project which offers new civil servants fixed-term employment contracts, ending the widely-held perception that a job in the civil service is a job for life. This may reduce demand for government positions in future.

Li said the survey also found that, despite low satisfaction levels, the “collective happiness” of civil servants was high due to the respect they receive from the public.

China Faces Serious Brain Drain Crisis

China has the highest number of top talents moving overseas in the world, News.cn reports

According to the Office of Central Talent Work Coordination Group, about 87 percent of professionals regarded as top talents working in the science and engineering field have chosen to emigrate out of China.

A survey released by the Chinese Academy of Sciences shows that many innovative talents in the Chinese science & technology sector, especially in the fields of physics, mathematics and computer sciences, have served in high positions in the world organizations.

With the current fierce international competition for expertise from such personnel, many developed countries have been attracting talent by adjusting their immigration policies, and some developing countries have now also joined the global competition for talent.

Nearly one million Chinese overseas students returned to China through the “Recruitment Program of Global Experts” (1000 Talent Plan), including 20 thousand high-quality overseas professionals.

The report quotes a senior official with the Office of Central Talent Work Coordination Group as saying that China needs more flexible talent development policies and mechanisms to attract more talent coming back.

Beijing seeks govt executives on contract to boost growth

An annual salary of no less than 200,000 yuan ($32,640) will be offered to six new high-ranking government employees hired by Beijing on fixed-term contracts, announced the capital’s public service authority.

The six senior executive positions, which are highly prioritized to boost the capital’s growth, are with agencies including the municipal science and technology committee, the transport commission and the economic-technological development area.

However, those positions are not government jobs for life, often referred to as the “iron rice bowl,” as the two or three-year-long contract not only has a probation period varying from three to six months, but also can be terminated should the person fail a performance test.

All Chinese citizens under the age of 45, physically and psychologically healthy with relevant qualifications and skills, can apply for the positions, reads the recruitment announcement.

Qualified candidates must file their application before 6 pm on June 24. Candidates have to pass a tailored written test, an interview, a comprehensive review and a seven-day public review period before being recruited.

Long before Beijing, Shenzhen already started recruiting government employees with a contract in 2007.

More than 3,200 of some 40,000 government employees are working there on a contract basis.

Contract-based recruitment, which smashes the permanence and stability of the “iron rice bowl,” has also been expanded to cities and provinces including Shanghai.

Generally, a candidate has to pass a unified civil service exam and an interview before being hired by a State organ. In 2012, some 1.5 million candidates took the exam, with 75 competing for a position on average.

Mao Shoulong, a public administration professor at the Renmin University of China, said it is suitable to recruit intermediate and senior professionals through contracts, who may be unwilling to take the general exam and not work in one place for their whole life.

However, Mao said he sees no need to recruit all government employees on a contract basis, adding that neither of the systems is foolproof.

Zhejiang opens uninhabited islands to private developers

Individuals could apply for the right to use uninhabited islands in Zhejiang Province for business development, with the longest possible lease 50 years, according to new local regulations formally implemented on Saturday.

Among the 2,639 uninhabited islands in Zhejiang Province, 31 are listed in the first published batch of 176 usable uninhabited islands nationwide, said Liu Xiangdong, an inspector with the Zhejiang Province Ocean and Fisheries Bureau at a press conference on Thursday.

The islands can be used for purposes from tourism to industry. Individuals could choose one from the 31 islands and submit an application including a concrete development plan to the county-level maritime authorities, Liu said.

After receiving an application, the authorities will publish the applicant’s name, the island involved, and the development plans to the public. They should also look for comments and receive approval from county-level governments, provincial maritime authorities and the provincial government, he said.

A bidding process will determine who gets the islands. If these islands have not been developed within three years, their rights could be withdrawn by the provincial government.

“The regulation is worth promoting nationwide,” Dong Liming, a vice director-general at the China Land Science Society, told the Global Times Friday. “With individuals working on the inhabited islands, our maritime economy could be developed and national defense could be strengthened.”

China Services Growth Slows Sharply, Adds To Recovery Risk

Growth in China’s services sector slowed sharply in April to its lowest point since August 2011, a private sector survey showed on Monday – fresh evidence of rising risks to a revival in the world’s No.2 economy.

The HSBC services Purchasing Managers’ Index (PMI) fell to 51.1 in April from 54.3 in March, with new order expansion the slowest in 20 months and staffing levels in the service sector decreasing for the first time since January 2009.

Two separate PMIs last week had already shown that China’s manufacturing sector growth slowed, With the weakness spreading to services, which make up almost half of gross domestic product, the risk to the recovery may be increasing.

“The weak HSBC service PMI figure provides further evidence of a slowdown not only in the factory sector but also in the service sector,” said Zhang Zhiwei, chief China economist at Nomura Securities in Hong Kong.

“This confirms our worries about insufficient growth momentum in the economy, which we expect to slow to 7.5 percent in the second quarter.”

The HSBC services PMI follows a similar survey by China’s National Bureau of Statistics, which found non-manufacturing activity eased to 54.5 from 55.6. The official PMI is more weighted towards large state-owned firms.

Readings above 50 indicate activity in the sector is growing, while those below 50 indicate it is contracting.

The HSBC survey showed that the sub-index measuring new business orders dropped sharply to a 20-month low of 51.5 in April, with only 15 percent of survey respondents reporting an increased volume of new orders that month, HSBC said.

“This started to bite employment growth. All these are likely to add some risk to China’s growth in 2Q, as there’s still a bumpy road towards sustaining growth recovery,” said HSBC’s China chief economist Qu Hongbin.

The employment sub-index decreased to 49.6 in April, the first net reduction in staff numbers since January 2009, although HSBC said job losses were marginal, partially caused by firms down-sizing and employee resignations.

Employment is a decisive factor shaping government thinking because it is crucial for social stability. The services sector accounted for 46 percent of China’s gross domestic product in 2012, as big as the country’s better-known manufacturing industry.

China’s economic growth unexpectedly stumbled in the first quarter, slipping to 7.7 percent versus 7.9 percent in the previous three month period, as factory output and investment slowed.

The government has set a 2013 growth target of 7.5 percent, a level Beijing deems sufficient for job creation while providing some room to reform to the economy.

Any more weak data could spark a policy response.

“The risk of slower growth is rising, the Chinese government will probably take actions after April data come out,” said Jianguang Shen, chief China economist of Mizuho Securities Asia in Hong Kong.

“I see an increasing possibility for China to cut interest rates, but not likely any time in the near future, as housing inflation is a constraint.”

However a Reuters poll last month found that China’s central bank is expected to keep the benchmark one-year bank lending rate at 6 percent and the one-year bank deposit rate at 3 percent through 2013, as well as holding banks’ reserve requirement ratios (RRR) steady.

China Now Has More Than 260 Million Migrant Workers Whose Average Monthly Salary Is 2,290 Yuan ($374.09)

China’s migrant workers exceeded 260 million at the end of 2012, with an average monthly salary of 2,290 yuan ($374.09), according to a report by the National Bureau of Statistics of China.

The bureau published the 2012 Investigational and Monitoring Report of Chinese Migrant Workers on Sunday, according to Xinhua News, China’s state-owned news agency. At the end of 2012, the number of migrant workers in China increased by 3.9 percent to 262.61 million, and the average salary of migrant workers rose 241 yuan ($39.37) to 2,290 yuan per month.

Migrant workers were previously farmers or were farmers ancestrally, and as China has modernized have chosen to seek more profitable, most often industrial work, in urban centers across the country. Many – 160 million in 2012 – choose to migrate to metropolitan cities farther away from their home regions.

In terms of income, average monthly salary rose 11.8 percent to 2,290 yuan for Chinese migrant workers in 2012. Workers in Hong Kong, Taiwan and Macau as well as foreign countries make significantly more – 5,550 yuan ($906.63) per month. Workers engaged in transportation and construction work have higher-than-average monthly salaries, 2,735 yuan ($446.78) and 2,654 yuan ($433.55), respectively.

Most migrant workers have not completed more than middle school- level education. In 2012, 1.5 percent of migrant workers were illiterate, 14.3 percent completed elementary school, 60.5 percent middle school, 13.3 percent high school, and 10.4 percent completed higher education. Younger workers and workers who went abroad have relatively higher education levels.

Migrant workers’ average age is increasing as well. In 2008, 70 percent of all migrant workers were below 40 years of age, and in 2012, only 59.3 percent were below 40. Accordingly, the average age increased from 34 to 37.3.

Significantly, many of these migrant workers were not working under contract, and were therefore not entitled to any form of social security. In 2012, 43.9 percent of migrant workers signed employment contracts, a similar percentage compared to previous years.

Meanwhile, 0.5 percent of migrant workers were not paid on time or at all, due to the lack of contracts. Only 14.3 percent received retirement benefits, 24 percent work-related injury insurance, 16.9 medical insurance, 8.4 percent unemployment and 6.1 percent maternity benefits. More than 40 percent of employers of migrant workers did not provide housing or housing subsidies, Xinhua News reported.

China’s graduates enter tight job market

BEIJING (AP) — Chemistry student Jiang Wenying graduated three years ago and decided the job market was so tough she might as well go back to school for a graduate degree. Now she’s finding it even worse, in what looks to be China’s tightest market ever for job-seeking graduates.

Jiang says she has sent out more than 1,000 job applications, netting no more than 10 interviews and not a single job offer.

Jiang, who received her graduate degree in chemical industry from the Harbin University of Science and Technology this year, recently traveled to Beijing to try her luck at a university campus job fair, but found no firm prospects there either.

“The job market has been getting worse by the year,” said the young woman, who looked dejected as she slouched against a column at the end of the job fair. She spoke just loud enough to be audible above the din of workers dismantling booths.

“There are far more chemical industry students than needed,” she said.

While the job market in China is still much better than in many other parts of the world, 2013 is being billed locally as the worst for young graduates. A record number of them — about 7 million — are leaving universities and graduate schools to seek their first employment at a time when companies are hiring fewer people. Women appear to be faring worse than men.

The stunning economic growth of the past dozen years is slowing, and gone are the days when graduates were assigned jobs in their respective industries — a system dismantled in the 1990s in China’s fast-changing economy.

The issue is politically sensitive because China’s urban, educated class has become outspoken about government shortcomings in dealing with ills ranging from endemic corruption to polluted air, and the tight job market could leave many among them disgruntled after more than a decade of economic expansion and rising expectations.

This year’s biggest-ever graduating class is the fruit of many years of government policy to boost enrollment, but the number of jobs for new hires has declined about 15 percent compared with the previous year, said Yang Xiong, director of the Youth Research Center in Shanghai Academy of Social Sciences.

“With those two factors, you end up with the toughest job market this year,” Yang said. “The global economy is not faring well, and China is part of the globalization. With closure of many export-oriented businesses and appreciation of the Chinese currency, employers have to slash on personnel.”

Preliminary data reported in state media show about a third of the 2013 class had signed employment contracts by May, compared to more than 40 percent a year ago. The number of students applying for graduate schools has reached a new high of 1.76 million.

The notion that education provides the promise of success has ancient, Confucian roots in China. It continues today, perhaps even more so because of family planning policies that often put the burden of a family’s future on a single child.

The country’s policy-makers — aware that a lack of jobs for the young and educated could be seen as a failure to uphold the social contract — have been urging that every measure be taken to help newly minted graduates gain employment, including creating more community-level jobs, reducing paperwork, recruiting for the military and promoting entrepreneurship.

“The employment of the graduating class affects economic development, improvement to living standards, and social stability,” said a central government document issued in mid-May when the issue was on the agenda of a state council meeting presided by Premier Li Keqiang.

Education Ministry spokeswoman Xu Mei told state media that the ministry and local education bureaus would offer more job fairs and online job-seeking services. “All sides are making efforts to ensure the employment rate of this year’s class won’t get lower,” she said. AP’s request for an interview with a ministry official on the issue was not immediately answered.

Some job seekers are lowering their expectations. Wang Yuan, an industrial design major at southern China’s Hunan Industrial University, thought a design job would be waiting for her after graduation. But nothing has become of the two dozen job applications she has sent out since last fall.

“They were like stones sinking into the sea,” said Wang, 23.

She has since changed her tack. “Any job will do, and choosiness will have to come later,” she said.

Lynn Lee, a 21-year-old law undergraduate student at Huaiyin Normal College in Jiangsu province, tried to find work in legal affairs, media, sales and executive assistance before finally landing a job as a bank teller near her hometown. Her job search included nearly 100 applications and several out-of-town trips.

“There were rounds of interviews, and many candidates had impressive academic credentials,” she said. “I was so nervous I couldn’t sleep at night, and now I’m left with a migraine.”

Lu Feng, an electronics senior at Xidian University in central Chinese city of Xi’an, said he was shocked to see a room filled with more than 1,000 applicants when he showed up for an interview with a technology firm from southern China recruiting for 20 jobs in his city. He got hired, and the job hunt took him only a couple of weeks.

Lu and several other male job seekers interviewed by The Associated Press said they feel they have better job prospects than females, and can even afford to be choosy.

China’s job market is notoriously discriminating. Employers have openly snubbed women, out-of-town job applicants and graduates from less prestigious institutions. This year, the Chinese State Council has demanded that employers make no requirement on gender, ethnicity, age, residence and type of school when hiring graduates of higher education, but the directive is unlikely to be followed.

When compared with elsewhere, China’s economy is still doing relatively well, with an overall urban unemployment rate of only 4.1 percent in 2012. That compared with unemployment rates ranging from 4.7 percent to more than 27 percent in European countries; the U.S. rate was 7.5 percent last month. However, a large share of China’s population is in the countryside, and urban data only cover a portion of China’s workforce.

Luo Xiaoming, editor-in-chief of the Chinese-language financial news site Caixun.com, said China’s economic growth of 7.7 percent for the first quarter should be able to absorb the increase in job seekers, but the challenge in the job market reflects a flaw in China’s investment-driven economy, which is expanding without job growth.

“This economic model has misled the market, resulting in excessive production capacity, and its lack of openness to the private sector has stifled innovation and entrepreneurship,” Luo said in explaining the lack of jobs in China. “Economic transformation has been stagnant.”

Some lay the blame on China’s education system, which they say is a mismatch to China’s job market.

Many jobs require only a polytechnical education, and perhaps China is currently producing too many university graduates, including doctoral-level students, said Yang, the youth research center director. That means many graduates end up with lower-level jobs that have little to do with their areas of study.

“Why would they want to take basic jobs? If they don’t, they become unemployed,” Yang said.