Whether you want to work abroad, take a gap year, fancy a career break/change or would just like a new experience then read more about what China can offer you!
Jobs in China
China is one of the oldest civilizations in the world. Today, besides it being one of the most populated countries, it also has one of the most thriving economies. China has, over the past few years, become the center of the world’s attention. This is due in large part to the fact that this country has now become the center for manufacturing and outsourcing. With all of this and more to its advantage, more and more people from all over the world seem to want to work in China.
China is now the world’s second largest economy and has a thriving private sector. It’s also renowned for its long history and mesmerising culture. In recent years the number of expats wanting to live and work in buzzing metropolises like Beijing, Shanghai and Hong Kong has grown exponentially.
The nation’s economic stability makes it an attractive option to those disheartened by the job opportunities available in their own country. Furthermore, a large amount of multinational corporations are opening in China whilst others are relocating their Asian headquarters there.
But anyone hoping to advance their career in China should also bear in mind the fact that competition for well paid expat jobs is fierce and extremely skill dependent.
As cheap labour can be easily found, the majority of positions available in companies are for senior level employees. It is expected that top grade applicants will have impressive relevant qualifications and significant work experience as well as some command of the main Chinese language, Mandarin. Some employees expect even a mid-level foreign worker to understand and speak a degree of Mandarin.
If you make no effort to learn the country’s language you may find integration and securing a well paid job in China much more difficult!
Some can also find the cultural differences very hard to get their head round. To make your expat experience as rewarding and successful as possible research China’s culture and traditions so you have some idea of what to expect before you arrive.
China Facts
Roughly 85% of expats are employed by international companies/foreign invested firms. The majority of expats which are hired by local Chinese companies work in manufacturing or engineering.
Main Types of Work Available to Foreigners
• Accounting & Finance (e.g. Commercial and Financial Directors)
• IT (e.g. Web Developers, Programmers, Graphic Designers and Project Managers)
• Advertising and Communications (e.g. Consultants, Advisors, Creative Directors, Marketing Directors)
• Teaching (Primarily teaching English as a second language)
• Health Sciences (e.g. Development and Research)
• Banking & Finance (e.g. Consumer Sector CEO’s, Risk Managers, Compliance Managers, Anti Money-Laundering Managers)
• Manufacturing and Industry (e.g. Operation Managers)
• Marketing and Sales (e.g. Marketing Managers, Sales Managers, Directing Sales Teams)
• Engineering (e.g. Skilled engineers, Project Supervisors, Civil Engineers)
• Legal (e.g. Co-ordinator of In-house Legal Team)
• Human Resources (e.g. Consultants and Managers)
• Marketing and Sales are the sectors which hire the most expat workers, at 30%.
• Banking and Financial sectors hire 25% of all China’s expat employees.
• Engineering is the sector with the third highest level of expat employment at 15%.
Locations
You can find jobs in most major cities in China, including Beijing, Shanghai, Hong Kong, Chengdu, Guangzhou, Harbin, Shezhen, Chongqing, Macau and more.
How to Find a Job in China
If you are looking for a high paid job with a multitude of benefits than the easiest way of procuring it is through sector-relevant contacts in your existing country or similar contacts already working for a Chinese company. Contacts can inform you when a suitable position opens up. They can also support a recommendation and offer invaluable advice based on their own experiences.
Web searches are obviously good ways of learning about potential jobs. Chinese companies prefer to advertise through Chinese websites, which often means some understanding of Mandarin is vital if you want to understand them. Conversely, multinational, European and American companies are more likely to structure their sites to cater to their populace and word them in English for broad appeal.
If you have moved to China but have been unable to find a job than the classified sections of English based magazines are particularly good places to find contract or part-time work.
For foreigners looking to teach English, jobs in basic and higher level education and in private language schools are generally advertised through the school/institution or through agencies. A TEFL (Teaching English as a Foreign Language) certificate is usually a prerequisite. A Masters degree can increase both your chances of finding good work and the salary you can expect.
It is also possible to find permanent work through an internship with a public institution of foreign company. Such internships are generally unpaid but they can lead to job offers and will make you more attractive to future employers.
Jobs for Students and Graduates
There are two pathways available which are popular with students and graduates seeking to experience the real China. These include an Au Pair cultural exchange programme and a teach English as a foreign language programme.
The Au Pair cultural exchange programme is designed for participants who have a desire to learn Mandarin and about Chinese culture. The Au Pair programme can give participants many long term benefits by providing an opportunity to learn Mandarin (one of the most in demand languages for western employers) and giving an in-depth understanding of Chinese culture.
The teaching English programme is very fulfilling as well as giving participants the opportunity to gain invaluable international work experience in a country which has the second largest economy in the world. It also has many of short term benefits including great financial benefits and an opportunity to explore China.
Guide to Working in China
Salaries
Some expats assume that by working in China they will command a much better salary. Whilst this is true for some people it really isn’t always the case. The average expat salary generally varies from £15,000 to £70,000 but it is possible to earn less than the lower figure and more than the higher.
There are a couple of factors anyone hoping to work in China really should be aware of:
In China there is a very strong work ethic and expats will be expected to work hard for their money. Laziness and lateness are not tolerated.
Being bilingual will get you more money! As is often the case for expat workers, in China the more experienced you are and the greater your language skills the more you will be capable of earning.
Depending on which industry you plan on working in an understanding of Chinese etiquette and business customs can be very important.
The majority of expatriate workers in China have qualifications from some form of higher education.
In the past attractive expat salary packages, often including housing payments and school fees, were offered to potential recruits from other countries. Although the packages offered now may not be quite as lucrative, an expat hired from outside of China will still earn considerably more than one appointed locally.
Workers in rural areas will earn less than those doing the same job in a city. Many companies ask for a minimum of 8 years prior experience. Smaller companies may pay less, larger companies may pay more.
Chinese law decrees that women under the age of 25 will only receive 3 months of maternity leave. Women aged 25 and over are entitled to an extra month.
Expats who already have children should also know that a good-quality international education can cost a HUGE amount, up to and beyond £100,000 a year in extreme cases!
Employment Packages
A low level of pay can be made up for by a comprehensive employment package whilst what seems like a high salary is far less attractive if it comes without one. Be aware that not all companies offer expat workers employment packages. The type of employment package also depends on whether the company is hiring an already local expat or one from overseas. An expat who already lives in China will receive significantly fewer benefits.
A good employment package can include tax coverage, a housing allowance, free or subsidised education for the employee’s children, evacuation insurance, coverage of shipping fees and annual bonuses. Free healthcare, lessons in Mandarin and yearly return flights to your home country are particularly coveted additional benefits.
Cost of Living
The cost of living in China is quite a bit lower than in the majority of western nations, meaning a smaller salary will go further (if your lifestyle isn’t too lavish!) However, the cost of living in big cities, like Beijing, is considerably higher than the cost of living in rural areas.
In China most expats are taxed roughly 20% of their monthly salary, but expats commanding a particularly high wage can see this rise to 40%.
Health insurance can cost around £150 a month so you can make great savings if you ensure that health insurance is included in your salary package.
Self Employment
Being a self-employed expat in China can be difficult as without an employer to support you obtaining a work visa is quite a bit harder. Also, if the nature of your work is restricted to your local environs you may find that knowing how to speak and understand Mandarin is essential to your success. If you are intent on being self employed then be prepared for some issues, obstacles and time delays!
Discrimination
In many Western nations anti-discrimination laws are strictly upheld, but this is not the case in China. The majority of Chinese employers expect an applicant to include a photograph of themselves when they submit their details. Often employers will also specify the age or the gender of the worker they want – they may even require them to be attractive! Interviewees may find some of the questions asked to be invasive or rude, but it’s perfectly legal for Chinese employers to ask them so be prepared to handle it!
Things to remember once you get a job
Before formally accepting a position make sure that you’ve checked these all important things: your annual pay, what currency you’re paid in, what date you’re paid/how often you’re paid, what holiday you’re entitled to, what the overtime policy is, what taxes will be deducted from your pay and the terms on which either side can terminate the employment.
It is equally important to establish what extra benefits are attached to your contract.
According to The Labour Contract Law formal contracts of employment must be drawn up within a month of an employee starting work. The employee must also receive a copy.
Working Conditions
The Chinese Labour Laws were updated in 2008 and are supposed to safeguard workers from poor or dangerous working conditions. Although some would question their success, by and large the working conditions for expat employees are significantly better than for Chinese locals.
The main cause for expat complaint is the uneven work/life balance. Theoretically, a working week runs from 9.00 am to 6.00 pm, Monday to Friday, resulting in 40 working hours a week as standard. This often isn’t the case with many employees expected to work overtime for little or no additional pay.
In China there are three national holidays a year, Chinese New Year, International Labour Day and National day. Each results in a week off work, but the government has made it a requirement that workers make up for this excess by working over the weekend before the holiday.
Chinese money
In China the currency is the Renminbi or RMB. The renminbi comprises the yuan, jiao and fen.
1 yuan = 10 jiao, and 1 jiao = 10 fen.
Yuan come in notes in amounts of 1, 2, 5, 10, 20, 50 and 100. Jiao come in notes in amounts of 1, 2 and 5. Fen are only issued as coins, but you can also get 1 and 5 jiao coins and 1 yuan coins.
When moving to China it’s important to be aware of the fact that the country has some pretty strict regulations when it comes to exchanging foreign currency. This means that if you are being paid in yuan you may find it tricky to convert your wages into an alternative currency even if keep your proof of payment.
Because of the rigid rules surrounding currency exchange there is quite an active black market for the service. Expats are strongly urged not to exchange their money this way. Not only is it illegal but you could end up out of pocket as often fake currencies are used in black market trades. If you need to convert Chinese money then use a trusted currency broker like TorFX. They can legally, reliably and regularly convert your funds into the form you need. Expatriate employment contracts usually specify exactly what percentage of earnings can be exchanged for a foreign currency.
Cost of living
Some assume that the cost of living in China is very low. Whilst that may have been the case in the past it certainly isn’t true of all areas of China now and it greatly depends on what standard of living you expect to enjoy.
The cost of living in urban areas (particularly in the nation’s largest cities) can be very high. Hong Kong, Shanghai and Beijing are among the most expensive cities in the world. Housing, essentials and amenities in these cities can set you back as much, if not more, as they would in London.
The cost of living in rural areas can still be fairly low but often the standard of living in small villages and settlements is below Western expectations.
Banking
Over the past couple of decades the banking system in China has gradually been transformed. Until recently the banking system was mainly government owned and government controlled. Lately, in order to become more commercially driven, the market has opened up to include other competitive forms of banking and a variety of financial services. There are now only three banks in China which are still owned by the government with the majority of banks having a mixed ownership. Despite this, because of the activities of the Ministry of Finance, The People’s Bank of China and the China Banking Regulatory Commission, China’s central government has retained significant influence over many banks operations.
Queues in Chinese banks can be rather lengthy and slow so if you need to speak to a cashier allow plenty of time. Generally banking hours are from 9am to 4/5pm on weekdays, though some will close for an hour at lunchtime.
There are some restrictions on banking services in China, such as maximum withdrawal amount. These restrictions can vary from bank to bank so it pays to do your research before opening an account.
Opening a Bank Account
If you decide that you need to open a Chinese bank account then there are several options open to you. The majority of expats use the comprehensive personal and business services of The Bank of China and CITIC Industrial Bank. Standard and Chartered and HSBC (the two main foreign banks operating in the country) are equally popular with expats.
Opening an account should be fairly simple. Generally you must make an appointment with the branch of your choosing and bring a valid visa, passport and proof of address with you when you go. Bear in mind that some banks may expect you to bring other documentation so it’s always a good idea to check what you will need when you make the appointment.
Most banks will issue you with a debit card once you have opened your Chinese account.
In China cash is king and it remains the most popular form of payment. Cheques are only rarely accepted and foreign cheques will usually only be accepted as a form of payment by banks if they are accompanied by collateral.
ATMs
ATMs are widespread in China’s main cities but they may be more limited in rural areas. ATM facilities in China are the same as those offered in many other nations and include cash withdrawals/deposits, transfers and balance/statement enquiries. If you have a foreign debit card you will need to check its compatibility. Generally foreign Visa cards or Maestro compatible cards can be used in China. Be aware that the majority of ATMs do have a transaction limit and usage fees can be quite high.
Transferring Money
Transferring money to China can be quite costly. If you want to save money your best bet is to seek the advice of a currency broker like TorFX. Not only will they be able to advise you of the best time to transfer your funds but they will secure you the best rate possible and transfer your money between accounts quickly and reliably.
Tax
China recently implemented some tax reforms which didn’t go over well with the country’s expat community. Unlike the majority of western nations the amount of Individual Income Tax (or IIT) that an expat must pay is directly proportional to their monthly salary minus a standard reduction of 4,800 RMB.
When it comes to paying IIT expatriates are liable if: they make 120,000 RMB, they earn income from outside China, they earn income from two or more sources within China, or if they receive taxable income which is not withheld by their employer. But any expats left exempt by these conditions will probably be snared by the last – that they must pay IIT if they meet any other special conditions for tax liability.
The following are all considered to be sources of income and are subject to IIT: Salary/wage, leasing or transferring property, subleasing/subcontracting, income from individually owned commercial and industrial households, author’s remuneration, remuneration for labour services, incidental income and royalties.
If payment isn’t made on time the penalty can be as much as five times the original amount. The tax rate itself is also progressive and ranges from a reasonable 3% to a whopping 45%.
Any expats who have resided in China for longer than five years must pay IIT on income accrued worldwide, no matter the source.
As the tax laws change with relative frequency and tax evasion is considered a serious crime in China it really is worthwhile seeking professional advice if you’re at all unsure. There are many international tax consulting companies which specialise in expat needs!