Sun, Jan 28, 2018 - Page 15 News List

China goes on tech binge, narrowing wage gap with US

Top engineers working on artificial intelligence can command salaries much higher than the national average, but a deluge of new graduates means that the sector would be hard-pressed to create enough jobs

By Stella Qiu and Elias Glenn  /  Reuters, BEIJING

Employees and visitors walk around the Alibaba Group Holding Ltd headquarters in Hangzhou, China, on Sept. 8 last year.

Photo: Bloomberg

China’s war for technology talent is intensifying. Tens of thousands of people are being hired to shore up cybersecurity, help censor online content and try to make China No. 1 in the application of artificial intelligence (AI), as capital pours into both start-ups and more mature businesses at a time when the Chinese government is demanding rapid development.

“Companies are well-funded and are in serious competition for talent,” said Thomas Liang (梁培華), a former executive at Chinese search giant Baidu Inc (百度) who is now running an AI-focused fund.

He said that start-ups in hot sectors like AI often have to offer 50 to 100 percent pay raises to attract employees away from established technology firms.

China’s emergence as a global center for technology, with champions such as Alibaba Group Holding Ltd (阿里巴巴) and Tencent Holdings Ltd (騰訊) now worth more than US$1 trillion combined, has led to a hiring boom and wage growth that starts to put top salaries within striking distance of those offered in Silicon Valley.

While that should please the Chinese government, as it seeks to create higher-paying jobs and move up the value chain, it could also add to income inequality in China as wages in non-tech jobs lag, and as the sector’s recruitment and income gains tend to be concentrated in the biggest cities such as Beijing and Shenzhen.

Technology is certainly a major driver of growth in China. Output in China’s information technology and software sector expanded by 33.8 percent year-on-year in the fourth quarter of last year, compared with 29 percent growth in the third quarter, according to data from the statistics bureau.

In China, top graduates working on AI can command salaries of 300,000 yuan to 600,000 yuan (US$47,066 to US$94,132) a year, according to tech recruitment Web site, while team leaders with three to five years of experience can make more than 1.5 million yuan annually. Many of these jobs are in Beijing or Shenzhen.

Liang said salaries in the industry have roughly doubled since 2014.

By comparison, an AI researcher in San Francisco makes an average of US$112,659 a year, and a machine learning engineer in the same city an average US$150,815, according to job search site

For Chinese software engineers who have studied in the US, but worry about the effects of US President Donald Trump’s immigration policies on their chances of retaining visas, returning home is becoming more appealing.

Chinese tech firms have said that they actively recruit Chinese students from US colleges and many have opened offices in Silicon Valley to attract top talent.

The boom in AI work is prompting some engineers to retrain in China.

“I doubled my salary by making the AI jump,” said Song, a 26-year-old AI engineer in Beijing who makes about US$55,000 per year after taking AI training courses in his own time.

As a 26-year-old AI engineer working for Beijing ByteDance Technology Co (北京字節跳動科技), maker of the Chinese news aggregator app Toutiao (今日頭條), George is pulling down an annual salary of about US$60,000, but said that he might jump ship if something better comes along.

Both Song and George asked that their full names not be used.

The money is still pouring in. More than US$65 billion of venture capital investments were made in Greater China last year, up 35 percent from a year earlier, according to research firm Preqin Ltd, an all-time high and second only to North America, with US$77 billion.

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