China’s New Talent Policy:
Objectives and Opportunities
WANG Huiyao
PhD
王辉耀
Senior Visiting Fellow
Harvard Kennedy School
Director General
Center for China and Globalization
Vice Chairman
China Western Returned Scholars Association
Hong Kong 2011-11-07
Brief CV of Dr. Huiyao Wang
Dr. Wang is a Senior Visiting Fellow at Harvard Kennedy
School and was a Visiting Fellow at Brookings Institution. He
has taught at Peking University, Tsinghua University in China
and University of Western Ontario in Canada. He has been a
senior advisor to the Chinese government at both central and
local levels and has served as a Task Force Leader for Global
Talents Strategy Study Group of Department of Organization of
Central Government. He is the Vice Chairman of China Talent
Research Society of Ministry of Human Resources and also an
Economic Team Leader for Overseas Experts Advisory
Committee of China State Council Overseas Chinese Affairs
Office. Dr. Wang has researched extensively on China’s talent
issues and published over 20 books and 100 papers and
articles on the subject, including his recent book National
Strategy--Talents Change World and his latest English book
Entrepreneurial and Business Elites of China: The Chinese
Returnees Who Have Shaped Modern China. Dr. Wang has BA
from China, an MBA from Canada and obtained his PhD from
University of Manchester in United Kingdom.
I. China Major Trends
Eight Transformations in China
1. From Population Dividend to Talent Dividend
• 225 million migrant workers in China
• Fast aging population, 168 million over 60
• Now has 98.3 million college educated
• By 2020, college educated 195 million
I. China Major Trends
Eight Transformations in China
2. From “Made in China” to “Created in China”
• Made in China, no major branding
• Labor costs on the rising side and labor unrest
• High environmental and resources costs
• Government goal to change China into an
innovative and creative country by 2020
I. China Major Trends
Eight Transformations in China
3. From Attracting Financial Capital to Attracting
Human Capital
• Top FDI recipient countries in the world
• Largest foreign exchange reserve about USD 3 trillion.
• China has 1.92 million students went overseas since
1978. As of today, only 600,000 have returned to China.
• The Science and Engineering PhD graduates returned to
China from US is only 8%
I. China Major Trends
Eight Transformations in China
4. From Hardware to Software
• China has built impressive hardware: from Three
Gorges Dam to super high speed railways, from
Olympic Stadium to World Expo pavilions etc..
• China lacks investment in education, R&D,
public health, energy conservation and
environmental protection, institution building,
social welfare, and many other areas related
attaining balanced development.
I. China Major Trends
Eight Transformations in China
5. From Investment-Driven Economy to
Talent-Driven Economy
• China’s service sector only 42% GDP
• China needs to create better paid jobs in
the service sector and better use all the
college graduates and talents
• This helps to raise overall consumption
levels and rely less on export
I. China Major Trends
Eight Transformations in China
6. From Resources Driven Economy to
Knowledge-Driven Economy
Other countries and region service sector
in relation to GDP
• USA
76.9%
• France 78.9%
• Japan
76.5%
• India
54.9%
• Hong Kong 95%
I. China Major Trends
Eight Transformations in China
7. From emphasis on Science & Technology
Innovation to both S & T and Social Innovation
More emphasis should be given to:
• Innovation in social structure, public policy
social culture, non governmental and non
profitable organizations and independent
think tanks
• This will need more innovative talents
I. China Major Trends
Eight Transformations in China
8. From rely on domestic talents to rely on
both domestic and international talents
I. China Major Trends
Eight Transformations in China
8. From rely on domestic talents to rely on
both domestic and international talents
Source：CPST ANALYSIS OF SED, 2006
I. China Major Trends
Eight Transformations in China
8. From rely on domestic talents to rely on
both domestic and international talents
Source：CPST ANALYSIS OF SED, 2006
I. China MajorTrends
Eight Transformations in China
8. From rely on domestic talents to rely on
both domestic and international talents
However, the returnees entrepreneurs going back to
China are having a different picture:
• I have co-authored a new study with Vivek Wadhwa,
Sonali Jain, AnnaLee Saxenian, Gary Gereffi on Chinese
and Indian returnee entrepreneurs and released by
Kauffman Foundation in April 2011.
• This study has been widely reported by many well known
main stream media such as Wall Street Journal, USA
Today, Business Week, China News Agency, Indian
Times, etc.
I. China Major Trends
Eight Transformations in China
8. From rely on domestic talents to rely on both
domestic and international talents
●
●
●
●
●
Our survey’s key findings include:
More than 60% of Indian and 90% of Chinese respondents cited
economic opportunities in their countries as a very important factor
in motivating the return home.
The returnees took pride in contributing to economic development in
their home countries. More than 60% of Indians and 51% of Chinese
rated this as very important.
56% of Indians and 59% of Chinese said their quality of life back
home was better or equal to what they had experienced in the
United States.
In China, 76% ranked access to local markets as very important. In
India, 64% did.
Salaries were the only advantage the respondents attributed to the
United States. 64% of the Indian respondents said their salaries
were better in the United States than at home. 53% of Chinese
respondents said that salaries were higher in the United States,
while 20% stated they were about the same in the United States and
China.
II. Development Review of China’s
New Talent Policy
• 2001 APEC conference on human capacity building in
Beijing.
• 2002 National Talent Building Plan
• 2003 national conference on human resources
development
• Establishment The Central Talent Work Coordinating
Group
• 2007 CCP adopted talent development as a strategy to
revitalize the country and put this into the Party
Congress Report and Party Charter
II. Development Review of China’s
Talent Policy
• 2008 Li Yuanchao became a CCP Politburo
member and Minister of the Organization
Department, place talent planning at the top of
the working agenda .
• 42 reports and 161 sub-reports on drafting
• over 500 meetings, involve over 30,000 people
nationwdie,1051 comments received.
• In the end, the plan was approved by all of the
top leaders in April 2010.
III. Passing of China’s National
Talent Development Plan (2010-2020)
IV. Main Indicators of China’s
Talent Plan
Main Indicators of China National Talent Development Plan
Target
Total No. of Talent
Ratio of R & D talent
in Labor Force
Unit
Ten Thousand
Person/10000
2008
2015
2020
11385
15625
18025
24.8
33
43
Ratio of High Skilled
Talents in Labor Force
％
24.4
27
28
Ratio of Labor Force who
Have Higher Education
％
9.2
15
20
Ratio of Human Capital
Investment of GDP
％
10.75
13
15
V. Objectives and Opportunities of
China’s Talent Plan
1. Establish National Talent Development Targets
•
The objective of the plan is to transform China with the
largest population into a stronger human resources
country.
•
Overall talent pool will increase 114 million people to
180 million by 2020.
•
To increase the ratio of citizens with college education
in the work force from 9.2 percent in 2008 to 20 percent
by 2020.
V. Objectives and Opportunities of
China’s Talent Plan
1. Establish National Talent Development Targets
•
The objective of the plan is to transform China with the
largest population into a stronger human resources
country.
•
Overall talent pool will increase 114 million people to
180 million by 2020.
•
To increase the ratio of citizens with college education
in the work force from 9.2 percent in 2008 to 20 percent
by 2020.
V. Objectives and Opportunities of
China’s Talent Plan
2. Six Categories of Talent Emphasized
The plan lists six major categories of talent that
the government will help cultivate:
•
•
•
•
•
•
1) Political leaders and officials;
2) Business entrepreneurs;
3) Technical professionals;
4) Highly-skilled talents;
5) Practical talents for rural areas and agriculture; and
6) Professional social workers.
V. Objectives and Opportunities of
China’s Talent Plan
3. Emphasis on the Quality and Selection Process for
Officials
•
By 2020; more than 85 percent of all government
officials will have four years of college education.
•
The plan calls to break away from restriction and
limitation from Chinese government entities and work
units on talent flows and create an open environment
for utilizing talented individuals.
•
The government must widen various channels to recruit
talented individuals and improve the system that
officials can be chosen and hired from various
enterprises, institutions and social organization
V. Objectives and Opportunities of
China’s Talent Plan
4. Specific Sectors in which Talent in Great Need
•
By 2020, more than 5 million talented individuals will be needed in
equipment manufacturing, information technology, biotechnology,
new materials, aeronautics and astronautics, oceanography,
finance and accounting, international business, environmental
protection, energy resources, agricultural technology, and modern
traffic and transportation.
•
In the coming 10 years, more than 8 million professionals will be
needed in the fields of education, political science and law,
medicine and health, publicity and cultural information, and
disaster prevention.
•
More college graduates to work in China's rural areas to help local
farmers live a better life.
•
Will put measures in place to train about 3 million professional
social workers by 2020.
V. Objectives and Opportunities of
China’s Talent Plan
5.
Program Support for more Talented Cultural and
Scholar Figures
•
In order to increase China’s soft power, the plan wants
to cultivate a group of highly-respected and talented
scholars and cultural figures with wide influence.
•
Support research fields such as philosophy, social
science, news and publishing, culture and art, heritage
protection and related social and humanities areas.
•
By 2020, the number of these highly respected and
very talented cultural and scholar figures funded by
government can reach 2,000 people in the country.
V. Objectives and Opportunities of
China’s Talent Plan
6. Prioritized R&D Sectors
•
R&D professionals will number 3.8 million by
2020. ( EuroStats put Germany 284,3 00, France 211,100, United Kingdom
175,500, whereas US Department of Labor Statistics Bureau has put this number
in the US at 621,700)
•
China’s national R & D spending will increase
from 1.62 percent now to 2.5 percent by 2020.
•
China national education budget will be
increased to 4 percent of GDP by 2012.
V. Objectives and Opportunities of
China’s Talent Plan
7. Business and Entrepreneurial Talents
•
The plan even sets a target for cultivating around 100 business leaders
and CEOs who can lead Chinese firms getting into the rank of Fortune
500 companies by 2020.
•
It also sets the number of international business-savvy talents working for
SOEs reach 40,000 people by 2020, with 50% of them hired through
market competition.
•
China will recruit globally for some key top positions of large SOEs
•
Chinese citizenship is no longer required in hiring for some of top
management positions for China’s major SOEs.
•
The recent high profile recruitment of Zhang Hongli from his position as
the chairman of Deutsche Bank - China to the position of Vice President
of the Industrial and Commercial Bank of China (ICBC), the largest bank
in China.
V. Objectives and Opportunities of
China’s Talent Plan
8. Thousand Talents Programs
•
The Thousand Talents Program calls for China to attract 2,000 highlevel overseas talents to work in China in the next five-to-ten years. By the
August of 2011, 1510 people had been recruited under the program, and
over 70 percent of them are foreign nationals, with most of them originally
from China. 300 of them have been enrolled in training courses given by
various ministers, including Minister Li Yuanchao, at the Central Party
School in Beijing.
•
The Youth Thousand Program to attract another 2000 talents under 40
years old in five years time.
•
The Foreign Experts Thousands Talents Plan to attract 500-1000 non
Chinese experts in five years time.
•
China also attracts many foreign experts to come to work in China on
short-term basis, 480,000/times of them from overseas to work in China in
2009. Will soon launch Foreign Experts Thousand Talent Program.
V. Objectives and Opportunities
of China’s Talent Plan
On July 29,2010 Chinese Vice President Xi Jinping met
representatives of Thousand Talent Program and
welcome them at Beidaihe Summer Resort near
Beijing.
V. Objectives and Opportunities of
China’s Talent Plan
China’s other programs on overseas talents
•
•
•
•
Started 1998, Changjiang Scholars Program,
(长江学者计划）14000 scholars awarded for
making services to over 130 universities in
China
Started 1997,Spring Light Program, （春晖计划）
12000 returned on short term basis for the
service
Started 1994, Hundred Person Program by
Chinese Science Academy （百人计划）
There are also 150 returnee entrepreneurial
parks （创业园）set up in China and over
10000 enterprises set up by returnees
V. Objectives and Opportunities of
China’s Talent Plan
9. More Liberal Policy on Foreign Talents and Talent Exchanges
•
The plan indicates that Chinese government wants to improve its
permanent foreign resident (Green Card) system.
•
The plan has stated that it will explore the adoption of the policy as
regards technically skilled immigrants to China.
•
By 2009, there were only 223,000 foreigners working in China with
employment permits.
•
The plan even calls for more foreign students to study in China.
•
The plan also encourages more Chinese talents to work for international
institutions. Good examples of these include Justin Lin, who now is World
Bank Chief Economist, and Zhu Min, now a special advisor to the IMF. By
the end of 2009, there were 1,002 Chinese working in different
international organizations.
V. Objectives and Opportunities of
China’s Talent Plan
10. Set up Special Talent Policy Management and Reform Zones
•
The plan also encourages local governments to set up special
talent policy management and reform zones that will be compatible
and connected to the international practice on talent and human
resources management system.
•
Since the plan announced in June, now government in Beijing,
Shenzhen, Wuhan, Dalian, Suzhou and Wuxi have all started to
set up special talent zones in China.
•
Such as Wuxi has attracted over 1000 overseas startups in hi-tech,
new energy, biotechnology, information and content networking.
•
Now Wuxi has even started a special policy to attract foreign
entrepreneurs and foreign talented individuals to come to Wuxi to
directly set up ventures and enterprises.
VI. Implications and Impact
Talent as a National Strategy to Transform China
•
The plan sets a new national strategy to transform China from
labor-intensive country into a talent rich one by 2020.
•
Cheap labor has fueled China’s development over the past three
decades, but that model, laden mainly with manufacturing, high
resources and energy consumption and heavy pollution on
environment has led China to a crossroad.
•
China’s talent plan has found a new growth engine and a new
effective stimulus to build China into an innovative and sustainable
country, but there still remains major challenges ahead, such as
education reform.
•
While China’s past success was built mainly on its population
dividend and investment, its future growth will rely more on the
new talent strategy by better utilizing talents in China and
attracting talents from all over the world.
•
Final Thoughts
National Strategy, Talent Change World
By Wang Huiyao, People’s Publishing Press, Beijing, China, 2010
National Strategy, Talent Change China
The End
Thank you !
王辉耀
Wang, Huiyao PhD
Senior Visiting Fellow
Harvard Kennedy School
Email: huiyao_wang@hks.harvard.edu
Director General
Center for China and Globalization
Web: www.ccg.org.cn
Email: wanghuiyao@ccg.org.cn
Tel: 86-10-58205638/39, 86-13901177520