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News from China
Local companies more attractive than multinationals: report
14th December 2018

 Multinational companies are losing out to local companies in their appeal to the best talent in China, according to a new report by Bain & Company.

 
The 2018 China Leadership Report, conducted by Bain in partnership with LinkedIn, found that roughly 40 percent of business leaders who began a new job at a local company in China over the past five years transitioned there from a multinational corporation. That compared with a rate of 33 percent in 2016.
 
“It is a stunning turnaround, as in the past foreign companies were considered better than their local counterparts for career growth,” said Stephen Shih, a partner at Bain.
 
The change took place amid the fast growth of Chinese companies, which can now offer the same or even better career opportunities for their employees, according to the report. Additionally, Chinese talent felt they have a greater amount of control over leadership decisions in local firms.
 
“By choosing to work at a Chinese company, leaders can expect to have a more hands-on role in key decision making and corporate strategy — an opportunity that is very appealing to many business leaders, especially younger employees,” Shih said.
 
This movement of talent from international companies to local ones has meant that human resources departments at multinationals have had to adjust how they attract local talent in China.
 
“Local Chinese companies are redefining our entire thinking of the talent market as they continue to attract leaders due to their experience, salary, training and opportunities,” James Root, another Bain partner and co-author of the report said.
 
“Multinationals need to rethink and adapt their value proposition to ensure that local talent feel they will have both opportunities and feel valued, thus ensuring that they don’t lose out on this important generation of leaders,” Root added.
 
Source: Shanghai Daily, December 14, 2018
Innovation drives quality development
13th December 2018

 The barometer of innovation capability in China rose at a faster pace in 2017, official data showed on Wednesday.

 
The China Innovation Index increased a pleasing 6.8 percent to 196.3 points, an accelerated growth rate compared with 5.7 percent in 2016, according to the data from the National Bureau of Statistics.
 
The index comprises four sub-indices, which measure innovation environment, input, output and effects.
 
The sub-index for the innovation environment jumped 10.4 percent, while innovation input, output and effects, rose 6.2 percent, 5.9 percent, and 4.8 percent.
 
“China had a better environment for innovation in 2017, with increased investment and output as well as improved effects,” the NBS said.
 
“The continued improvement in the innovation capability has provided strong momentum for high-quality development,” said Guan Xiaojing, an NBS senior statistician.
Source: Shanghai Daily, December 13, 2018
Ctrip launches platform for boutique service providers
12th December 2018

 Ctrip will launch a new platform open to individual service providers including customized tour designers, drivers, tour guides and other small tour product suppliers, the Shanghai-based online travel operator announced on Tuesday.

 
Individual service providers will be able to operate tourism businesses on the platform even if they don't have a physical store, and tourists will be able to enjoy more diversified and flexible options when they choose tour packages, instead of obtaining services solely from travel agencies or big product suppliers, Ctrip announced during its global partners summit in Shanghai. 
 
Customized tour designers don't need a physical store and can offer personalized tour designs from home, and tourists can forward various personalized demands to them, James Liang, Ctrip's co-founder and executive chairman, said.
 
But there is a threshold for individual service providers such as qualification certificates and tour guide licenses if they want to operate on the platform.
 
Individual operators will have points deducted if they draw complaints or are found with dishonest practices, and will be removed from the platform if they lose all of their points.
 
Source: Shanghai Daily, December 12, 2018
China, Germany pledge to jointly protect free trade, world order
11th December 2018

 China and Germany on Monday agreed to join hands to safeguard free trade and the international order.

 
The agreement was made between Chinese Premier Li Keqiang and German President Frank-Walter Steinmeier, who is about to wrap up his six-day visit to China starting from December 5.
 
"China and Germany, as major world economies, are important cooperation partners to each other," Li said.
 
At present, the results of the fifth round of China-Germany intergovernmental consultations, held in Germany this July, are being implemented step by step.
 
"China will seize the opportunities and develop ties with Germany on the basis of mutual respect and equal-footed cooperation, so as to achieve mutually beneficial and win-win outcomes," Li said.
 
The Chinese premier noted that with continued efforts in opening-up and implementation of new measures, German enterprises in the areas of automobile, chemical industry and finance have become the first batch of beneficiaries.
 
China welcomes more German enterprises to expand investment in China and also hopes Germany will provide a fair business environment for Chinese investors and businessmen, Li added.
 
He also voiced his expectation of more people-to-people exchanges, which will help consolidate public support of China-Germany ties.
 
Stressing the importance of protecting multilateralism and the rule-based international order, Li called on both sides to stimulate vitality of global development and jointly push forward the world's economic and social progress.
 
For his part, Steinmeier said he has felt the tremendous vitality of China's economic development, as well as the increasingly closer people-to-people exchanges between Germany and China.
 
In the past few decades, as relations with China grew ever faster, Germany benefited from China's reform and opening-up, Steinmeier said, adding that his country stands ready to further expand trade and investment in China, boost bilateral dialogue, and jointly safeguard free trade and the existing international order.
Source: Shanghai Daily, December 11, 2018

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