China - the "hai gui" dilemma

They are often called hai gui - "sea turles", Chinese nationals educated abroad who have returned to China. While many of the approximately 2.6 million Chinese who have gone to study abroad since the late 70s built a life outside China, some 1.1 m have returned home.

Western companies hiring Chinese returnees for their ventures in China often hope to find a valuable combination of Western attitude, language proficiency and loyalty and a deep understanding of Chinese culture. However, this summer, business journals like the Economist and the Financial Times have repeatedly reported about an increasing number of hai gui who leave China again, often in frustration.

The reasons are complex, like China. Returnees may be viewed with suspicion or jealousy by their fellow countrymen and like foreigners, they often lack the close relationships that are essential to doing business in China. Researchers also argue that the some of the returnees lack high-quality qualification or enough work experience or return with unrealistic expectations. Top Chinese graduates still prefer to stay abroad.

So what does that mean for Western companies? Is hiring a hai gui a smart recruiting strategy or will it backfire? To find out more, contact Heike Stengel for tailor-made trainings such as "China for HR professionals".

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