Introducing China Law for Expats

A good friend of mine, Eric Meng, recently launched a new site targeting a specific niche: China Law for Expats.

I worked with Eric last year at the American Chamber of Commerce.  He graduated from the University of Virginia law school and is a New York licensed attorney.

And according to him, his goal is to help provide answers to many of the commons hurdles, struggles and questions that confound the expat community in China.  For example, one of his recent posts discusses work visas, describing the process and eligibility requirements for those without work experience.

Consequently, I know from first hand experience (see Chapter 10) how useful it can be to have cogent, legal advice out here.  Thus if you plan to work or even travel out on the mainland for an extended period of time, be sure to visit his site or contact him for more information.

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Another Brick in the Wall: Link Edition XXVIII

Lots of bearish news right now but there are a couple of opportunities such as selling real-estate to Chinese buyers in foreign countries (specifically the US, see the last link) as well as finding ways to get big Chinese brands overseas.  Can your firm do either?  Thanks to Mike, James H and Sinocism for some of the links.

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Another Brick in the Wall: Link Edition XXVII

Perhaps the biggest story that I have come across this past week is the newly unveiled plan to move 250 million rural residents to cities over the next 12-15 years.  This raises multiple questions: What will they do after the forced migration? Do they have any useful skills for urban environments?

This is not to say that this will end in collapse or some other doomsday scenario but if there were opportunities that rural migrants were capable of achieving in the cities they wouldn’t have to force people to move.  How are things going to be when the cities are full of unemployed migrants?

Either way, this probably does provide an opportunity to training companies that may find demand from relatively unskilled individuals looking to receive training for skilled work, so they can find work (or create companies that do).  This pretty much opens up the spectrum of training possibilities, though obviously affordability may also be a big issue (e.g., rural migrants are relatively poor, typically earning less than $5,000 a year).  See Chapter 9 for more ideas on the education and training segment.

Other news stories, some courtesy of Sinocism:

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Are MOOCs a solution for the skillset mismatch?

While few people have a desire to be unemployed (or unemployable) the current higher education system in China has a number of issues in that many of the programs students have enrolled and graduate from do not prepare many of them for the labor market.  For example, roughly 6.99 million students will graduate from a Chinese college this summer (exams are typically held at the end of June, early July) yet in large cities like Guangdong, Beijing or Shanghai, only ~30% or so of new graduates have signed contracts for employment.

This is not a new issue or discovery, in fact, I wrote about it last year (as did the WSJ).  In Chapter 9 I discuss several of the opportunities that comes from this skillset mismatch, namely the need for retraining — some of which may take place online.  Massive open online courses (MOOCs) could be one solution.

Below is a very interesting, very concise write-up of the current problem as shown at a recently held Shanghai job fair, where neither candidate nor employer is incentivized by the other.  From MarketPlace education:

Hundreds of HR managers carefully eye prospective employees who, resumes in hand, crowd the floor at a Shanghai job fair.

Here’s the problem: neither group is interested in each other.

Nicole Li is looking to hire college graduates for her property management company. “We need technicians to fix software problems, but college grads don’t have these skills,” says Li, frowning. “We need people for exhibitions who can do presentations in English, but they can’t do that, either.”

Li needs to hire people for 60 high-skilled jobs. She says among the thousands of candidates here today, she’ll be lucky if she finds one.

Tong Huiqin comes to this job fair every Friday. He graduated from the Shanghai Finance University six years ago. Since then, he’s jumped from one job to the next. “It isn’t hard to find a job,” says Tong.  “It’s hard to find the right job.”

He’s worked as a supervisor for a bunch of companies, but hasn’t found the right fit. “You could have five hundred graduates and five hundred job openings here, and none of them would match up,” he says.

Tong blames Chinese universities. He says they need to do a better job at preparing people for the country’s rapidly changing labor market. Xiong Bingqi is the deputy dean of the 21st Century Education Research Institute, a nonprofit think tank in Beijing. “The scale of China’s higher education system has developed so fast that we’re failing to produce college graduates with the right skills for the jobs that are out there,” says Xiong.

For those with means, that’s meant sending your college-age children instead to universities in the U.S., Australia, or Europe. But most young Chinese can’t afford that, so they’re stuck in a Chinese university. And after they graduate — according to a recent state survey — their unemployment rate is four times higher than for those who didn’t get past elementary school.

Inside the job fair, young graduates linger in front of a booth for Bao Steel, China’s largest steel manufacturer. A big sign says that people from parts of Sichuan, Henan, Anhui, and Hunan are not allowed to apply. A guy applying for a job says people from those provinces can’t be trusted. It’s sort of like a booth at a New York job fair banning applicants from, say, Minnesota, Wisconsin and North Dakota. But this is typical in China, where even state-owned enterprises don’t bother to hide their discrimination.

At a neighboring booth, Jason Zhang is hiring people to work at a chain of nightclubs. He doesn’t care where his job candidates are from. He’s more concerned whether they’re willing to work. “I think today’s graduates are less appealing than people who were born in the ’70s and ’80s,” says Zhang. “They tend to be overly confident and they don’t want to work very hard.”

I turn around and ask 22-year-old Wang Qianmin, who’s about to graduate from Shanghai Normal University with a teaching degree, what she’s looking for at the job fair. “I don’t know,” she says with a pout. “Most of the jobs here aren’t really interesting. I’m looking for a company that’ll give me a high salary, money for meals and that’ll pay my rent — a place where the working hours aren’t too long.”

Wang says she wants to be a teacher. Or maybe a wedding planner.

She can’t decide.

Jason Zhang, the recruiter who has years of experience hiring people, rolls his eyes at this type of candidate. “Chinese college graduates these days think they’re really special,” he says with a smile. “The problem is — they’re the only ones who think that.”

Zhang says Wang and many others in China’s class of 2013 will go all summer thinking they’ve got lots of options, and will probably end up unemployed.

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Another Brick in the Wall: Link Edition XXVI

Another cornucopia of links, mostly China-related.  I wonder if encryption usage will become more prevalent by companies and individuals?  Maybe not though because it can be complex and cumbersome to use… although as David Veksler has mentioned, it is good “best practices” to prevent proprietary information from leaking at your company by utilizing encryption.  Perhaps services like Silent Circle will become more popular as time goes by?

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Another Brick in the Wall: Link Edition XXV

A smorgasbord of China-related links.  Xi and Obama are meeting out in Sunnylands right now (good VF article covering Sunnylands last year).  I wonder if Xi’s wife (Peng Liyuan) will dump her iPhone now that Apple is allegedly part of the NSA PRISM program.  Thanks to Sinocism for several of the links.

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Let’s Talk: Interview with creator of Litecoin

Very informative interview with Charles Lee, the creator of Litecoin, the largest and most popular alt-coin spinoff of Bitcoin (it’s market cap is around ~$65 million right now). Be sure to check out CoinWarz to visualize the profitability in mining and speculating on alternative cryptocoins.

If you have some free time, listen to other interviews from Stephanie Murphy, the host of Let’s Talk Bitcoin.

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Another Brick in the Wall: Link Edition XXIV

Despite the political issues and bilateral hacking, there is an ever growing amount of trade between the US and China.  This is great — win/win.  See the Bastiat link at the end for why.  Thanks to Sinocism for some of the links.

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Another Brick in the Wall: Link Edition XXIII

Upcoming political meetings between Xi and Obama, relatively slow news other than that.  Some of the links are from Sinocism.

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Stat of the day: foreign students in China

With a goal of attracting 500,000 foreign students annually by 2020, the mid-way point has now been crossed.   According to CNN:

About 290,000 studied in China in 2011, compared to just over 60,000 in 2001, according to the MOE. South Koreans (62,442) were the largest group of foreign students studying in China in 2011, followed by Americans (23,292). The Japanese (17,961), Russians (13,340), Indonesians (10,957) and Indians (9,370) also have large student populations, while almost 50,000 Europeans undertook some form of tertiary study in China in 2011, led by France (7,592) and Germany (5,451).

In contrast, there were roughly 194,000 Chinese students in the US last year and nearly 1 million foreign students altogether.

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Another Brick in the Wall: Link Edition XXII

A number of stories from a variety of segments.  Several are from Sinocism.

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Stat of the day: WWII movies and TV shows in China

Last year alone, Chinese movie studios (nearly all of which are state-owned) produced more than 200 anti-Japanese films.  Why?  Because it’s one of the few areas that isn’t completely censored due in part to the lengthy occupation of the mainland.

As Reuters recently reported:

Some film reviewers in China say that with the censors declaring so many other subjects off limits, it is only natural that the war dominates story-telling in a competitive market for viewers and advertising.

“Only anti-Japanese themes aren’t limited,” says Zhu Dake, an outspoken culture critic and professor at Shanghai’s Tongji University. “The people who make TV think that only through anti-Japanese themes will they be applauded by the narrow-minded patriots who like it.”

Zhu estimates war stories make up about 70 percent of drama on Chinese television. The state administrator approved 69 anti-Japanese television series for production last year and about 100 films. Reports in the state-controlled media said up to 40 of these were shot at Hengdian alone. State television reported in April that more than 30 series about the war were filming or in planning by the end of March.

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Another Brick in the Wall: Link Edition XXI

Big mix of links today.  Certainly wouldn’t want to be a new college grad in China without awesome guanxi.

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Another Brick in the Wall: Link Edition XX

Clearing the tabs of some article published in the last few weeks.  Thanks to Melissa for two of them.

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Another Brick in the Wall: Link Edition XIX

Anecdotatly it is hard to say what direction luxury is heading since it is such a large segment now.  Government crackdown on big Party dinners still in effect, not sure if government officials want to be made an example of (including receiving traditional gifts like watches).

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Another Brick in the Wall: Link Edition XVIII

Another relatively slow news week.  Big skillset mismatch with new college grads, sympathize with (unemployed) former students at the colleges I taught at.  Thanks to Xiao for a couple links.

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Another Brick in the Wall: Link Edition XVII

Slow news week, pretty bearish too.  There are a few bright spots.  Thanks to Larry M for sending in a couple of the stories:

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On the ground relevant data and knowledge on the mainland

Shanghaiist recently did a must-read interview with Shaun Rein.  I had the fortune of interviewing him for my book (see Ch 4 & 13), but this new interview is even better/more detailed in my opinion.

He’s one of the few laowai that truly understands what is going on here, approaching the business atmosphere with a very balanced mindset.  Check out his book and if you’re looking for a consumer research firm, he happens to manage one (CMR) as well.

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Stat of the day: Inbound tourism and expats in China

Inbound tourists who stay overnight in China:

The number of British expats working in China has risen 18%, growing from 31,160 in 2006/07 to 38,000 in 2010/11.  As of June 2012 there were about 70,000 American’s in China.  There are 600,000 foreigners who are permanent residents and 220,000 foreigners legally working on the mainland.

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Another Brick in the Wall: Link Edition XVI

Mostly China-related links from the past couple of weeks.  Thanks to those who sent them in, see Sinocism for more:

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Cryptocurrency in the news: X

Probably will be awhile before I do another curated set of links specifically for Bitcoin related topics.  Thanks to Vijay, Jeremy, Mike, Alex and Ben for the links:

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Cryptocurrency in the news: IX

Thanks to the couple of sources who sent these in:

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Stat of the day: Consumer spending in China

Consumer spending as a proportion of GDP:

*The 2012 number is debatable as some sources measure it as low as 35% yet others at 55% and even 65%.  See China’s Golden Rule of Consumption by Yukon Huang and China unlocks right kind of growth from Financial Times and Chinese shoppers are thriving from Financial Times

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