Search for global talent
If China is serious about attracting the best and brightest, it could set up dedicated zone with tax and other incentives
China’s local governments have switched from focusing on attracting investments to courting talent, showing how intellectual capital is becoming a key engine for the country’s next stage of development. In its push to achieve technological self-sufficiency, Beijing has made bringing in international talent a national priority.
China’s economic fortunes are tied to its talent pool. Following the founding of the People’s Republic of China, the promises of rebuilding the nation drew back many educated patriots, a group that was later devastated during the Anti-Rightist Campaign, the Great Leap Forward and the Cultural Revolution.
The preservation of human capital in China’s diaspora made the success of its economic reforms possible. With economic opening up, overseas Chinese and compatriots from Hong Kong and Taiwan brought their know-how and connections – which were no less important than capital – into the mainland, helping to create a reliable, educated labour pool for factories.
The restoration of the university entrance examination in 1977 started to train a new generation of leaders, including some of China’s current top officials. At the turn of the century, China started a rapid expansion of universities that resulted in the world’s largest higher education system, with more than 10 million students expected to graduate from higher education this year.
More than just quantity, Chinese universities have made strides in improving quality. Tsinghua University’s and Peking
University’s programmes in engineering and technology are ranked among the world’s top, and they have become feeder schools for top science and engineering PhD programmes in the United States.
In 2019, before the outbreak of Covid-19, more than 700,000 Chinese students went overseas to study. By 2020, more than 5 million graduates of overseas universities had returned.
These numbers seem to suggest that China does not lack educated human resources. The country’s K-12 education system in urban areas has produced many top graduates to feed into higher education, even if this has curtailed the development of talent at the very top end.
The US has an unassailable edge in bringing in the best and brightest in the world.
People might be drawn to China by financial incentives or business opportunities. But other than offering economic rewards, China lacks the full package. Foreigners can get high-paying research jobs and large research grants but cannot realistically advance to the top of academia, where appointments are shaped by political considerations. And it is difficult for foreigners to fully integrate into Chinese society.
Despite the backlash against immigration from US conservatives, meritocratic integration of foreign talent is fundamental to America’s social fabric and national identity. In a far less open society, China’s drive to attract international talent is much more for narrow, utilitarian ends.
Hong Kong has long been a hub for international talent. English is a working language, and there is free access to information.
It is possible to become a permanent resident after seven years. Other than in civil service and political positions, there are few barriers for foreigners to advance in Hong Kong, although Mandarin is increasingly an important asset. But the city’s exorbitant housing costs represent a serious handicap.
Qianhai International Talent Port, which opened in Shenzhen this year, is one of China’s latest attempts to attract people. However, it remains to be seen how this initiative can overcome the country’s many limitations.
If China is serious about attracting the best, it might need a more ambitious approach. It could consider setting up a global talent zone, replicating Hong Kong’s unique strengths as much as possible. Low taxes and no
Great Firewall would be a start, and high-quality international schools at modest fees are a must.
Such a zone could avoid constrained land supplies by operating in spacious areas such as the west bank of the Pearl River Delta. High-quality, affordable housing would be important for this “Hong Kong on the mainland”, which could be connected to Hong Kong through the Greater Bay Area’s expanding infrastructure.
Besides meeting Beijing’s development goals, the zone could also help Hong Kong by offering its young people a way to advance their careers and improve their quality of life. This would be a hub where talent from the mainland, including many returnees, Hong Kong and around the world could collaborate.
The Covid-19 pandemic has shown the potential of remote working. For China to draw global talent to work for its national development, there is no need for these people to be physically present in the country.
Chinese firms and research organisations can set up or sponsor research and development centres anywhere in the world as long as their ownership of intellectual property is protected by clear legal frameworks. As this international research would be commercialised in China or “neutral” countries, geopolitical risks could be minimised.
Technological powerhouses such as South Korea, Israel and western European countries are obvious options to host such centres. By working with China, Singapore could further improve its position as a talent hub.
At the height of the Tang dynasty, the capital of Changan was a magnet for international talent. However, as modern China is not yet as open, Beijing needs to be much more proactive and creative in its efforts to attract the world’s best.
China lacks the full package. Foreigners can get high-paying research jobs and large research grants but cannot advance to the top of academia
Winston Mok, a private investor, was previously a private equity investor