Upside Down

By Frank Mulligan - Recruit China

China is definitely flavour of the month, both as one of the most recognizable underlying narratives in the media, and as an interesting story generally.

But itís not just about China the country.

The fact that the country offers international companies a huge market and a strong manufacturing base is an old story. What is new is that it also offers everyone excellent career potential, from local factory workers to expatriate professionals. More and more people are coming here, especially from other parts of Asia, and the society is deepening as a result.

So Chinaís influence stretches beyond its borders and, in turn, it is influenced by factors outside of China. The professionals who come here are bringing a great deal more than their technical skills. As a result of their presence Chinese society is becoming more open and accessible. People here are definitely taking a broader view and considering possibilities outside of their own personal box.

Ten years ago it was difficult to just get past the oft-repeated îYou donít understand ChinaÖ..î.

In some ways China is becoming a little more like Hong Kong and Singapore. Unfortunately, from their point of view, these two cities are losing out to China on a massive scale. Specifically, they are losing the things that used to accrue to them:

Broad Foreign Direct Investment (FDI)
Manufacturing
Large Scale Construction Projects
Outsourcing
Asia Pacific HQs
R&D
Media Attention
Not much left really.

Itís not that long ago that Hong Kong was regarded as the ëGateway to Chinaí but by the late-90ís it was seen by many as the ëBig Barrierí.

So companies who already had operations in Hong Kong and wanted to move to China found themselves having to overcome the inertia of their Hong Kong operations. Their late entrant competitors skipped past Hong Kong and invested directly in Shenzhen, Beijing and Shanghai. Now new entrants skip even these cities and move to inland cities where costs are lower.

The world has already turned upside down so Iím just waiting to see how long it takes before it turns upright again. Swings and roundabouts, swings and roundabouts.

Email frank.mulligan@recruit-china.com
Frank Mulliganís blog - english.talent-software.com