Blog: Industry Research, Asia Pacific
China’s “New Normal” Economy and the Future of Talent Mobility – Overcoming Key Mobility Challenges in China
by Echo Lei
As we head towards the mid-way point of 2016, some reports suggest that China’s economic growth appears to be decelerating. During the ERC® Summit in Shanghai, Shaun Rein, Founder of the China Market Research Group, addressed the demise of ‘copycat’ China and the need to innovate due to factors such as urbanization, corruption crack down, pollution and rise of bio tech.
Rein’s comments follow Premier Xi Jinping’s announcement of his vision of the ‘new normal’ in China. His vision is one of an active economic transition, with three major changes in the economy. First, a gearing down of the country’s development speed from high to medium-level growth; a shifting focus from industrial production and manufacturing to services; and finally a focus on innovation and consumption as drivers of growth rather than investment and exports.
In the same Summit, SIRVA also moderated a discussion on how the changing economy is impacting the mobility into and out of China, as more companies are relying on purpose-driven and flexible mobility programs; and using both domestic and overseas assignments as part of their talent management strategy.
Of course the success of any organization’s mobility program depends upon effective policies. Foreign multinationals in China and Chinese multinationals looking to grow domestically and/or globally need to understand the circumstances that drive – or inhibit – a quality assignment or relocation experience. So what are the challenges for mobility in China? In this “Overcoming Key Mobility Challenges in China” series, we shall examine three key challenges – environmental, high housing cost and family resistance and best practices on overcoming them.