Fri, Jun 17, 2005 - Page 10 News List

Brain drain not expected as China removes hiring ban

INCENTIVES Taiwanese employees will opt to stay rather than work in China, as firms here offer better pay and benefits, market watchers insist

By Jessie Ho  /  STAFF REPORTER

Beijing's decision to lift a ban on hiring Taiwanese employees by Chinese companies will not impact the local job market, as the work conditions and offers of the companies are inferior to those in Taiwanese or transnational firms, market watchers said yesterday.

"I don't see any incentives from the liberalization," Monica Chiu (邱文仁), marketing director at the Web-based 104 Job Bank (104人力銀行), said yesterday.

Chinese authorities on Wednesday announced it would scrap various limitations on Taiwanese citizens seeking to work in Chinese enterprises. In addition, Taiwanese who have lived in China for at least one year can apply for visa valid for as long as five years, and be exempt from entry procedures, state-run Xinhua news agency reported, citing Chinese government officials.

Currently, Taiwanese people must have work experience in the field to apply for positions in Chinese companies. But Chinese employers are not allowed to hire Taiwanese unless they cannot find suitable Chinese candidates in a period of three weeks. The two restrictions will be removed starting in October.

Even though "go-west" fever remains high, most Taiwanese who seek to work in China prefer to work in local or transnational firms that set up operations there, rather than Chinese firms that generally offer comparatively lower salaries, Chiu said.

The starting salary offered to college graduates with no experience in Chinese companies is about 2,500 Chinese yuan, or NT$10,000 per month; about one-third of what local companies offer, Chiu said.

"Qualified people will always choose preferable offers, including pay and benefits, and this is something local companies can do better than Chinese ones," Chiu said.

It's not only employees who are looking for better conditions, Chinese employers are also seeking better talents, said Kevin Zang (臧聲遠), editor in chief of the Chinese-language monthly magazine Career (就業情報).

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