Recruiting in China

GUANGZHOU, China, This year is likely to be a difficult one for China's economy, as Premier Wen Jiabao warned at a recent press conference. The export business has been shrinking due to the appreciation of the Chinese yuan, as well as the "austerity" policy. This is going to make it harder for people to find jobs.
Chinese academics are now avidly discussing the need for transformation of the nation's industries. This cannot be achieved overnight, however. The most urgent task is to find employment for China's labor force.

One solution would be to support and encourage the export of labor. If taken as a national strategy, China could focus on "branding" its labor force as an exportable commodity. Some Chinese may feel this would dishonor China, which claims a noble history and by tradition considers itself the nation of heaven. But this would be the most effective approach to serve the interests of both the laborers and the country.

When speaking of exported labor, the Chinese cannot help but think of the Philippines and compare it with China.

In the eyes of many Chinese, the Philippines is not a very successful country. In discussing national development models, Chinese academics typically criticize the country, saying, "Everyone says the Philippines has American-style democracy, doesn't it? The result is that its women all go abroad to be housemaids!"

Firstly, whether the Philippines can be viewed as a democratic country remains questionable, in my opinion. But even so, the Chinese are not qualified to mock its democracy by criticizing Filipino maids.

Secondly, earning a living by working is not shameful. And in the global era, it's not bad to go abroad to labor for higher pay, rather than receiving low pay for heavy work in the domestic market. Basketball star Yao Ming's act of going to the United States to join the National Basketball Association is an example of exported labor, after all.

The export of labor has been a very significant industry in the Philippines, and Filipino maids are famous throughout Southeast Asia. For example, there are 700,000 Filipino maids in Hong Kong alone. In fact, it's not an exaggeration to say that middle-class families in Southeast Asia cannot function well without their Filipino maids.

China's current economic model is not essentially different from the Philippines -- both countries are earning foreign currency by selling their cheap labor force.

Today China is proud of being called the factory of the world, but there are actually two kinds of world factories. One is like Britain during the Industrial Revolution, when its industrial products were sold worldwide. Britain relied mainly on its leading skills and efficiency in the world.

China, however, relies almost exclusively on its cheap labor. Its so-called export orientation is merely exchanging its major resource, the domestic work force, for foreign currency in the international market. The Chinese government thus becomes the biggest labor contractor in the world.

China should pay attention to at least two points if it wishes to expand its labor exports. The first is to brand its work force as a high-quality product, in the same way that watches from Switzerland and leather shoes from Italy are recognized for their high quality.

Filipino maids have succeeded in this. People want maids from the Philippines because they are known for their honesty, optimism and diligence, and employers are willing to pay them higher wages than their counterparts from other countries. This is the outcome of long-term assistance from the Philippine government and employment agencies.

Even though China produces consumer goods for the whole world, how many people will remember the Chinese laborers who make these products, working long hours under terrible conditions? Without a reputation for quality like the Filipinos have, Chinese workers' only advantage is their low price. If wages are raised, many industries will move away to other countries.

The second point the government should pay attention to is protecting the basic rights and welfare of its laborers. The Philippine Embassy in Hong Kong, for example, pays attention to employers' inappropriate treatment of its nationals. The embassy keeps a list of employers charged with abusing their maids, forcing them to work overtime or sleep on the floor, for example. If these employers do not improve the situation, they won't be allowed to hire Filipino maids.

In China's factories, some employees' working conditions and wages are far worse than those of Filipino maids. Many work very long hours for a salary of just a few hundred yuan. When will they receive reasonable payment, and take pride in their work like the Filipino maids do?

One advantage of Filipino maids is their ability to speak English; most Chinese cannot compete on this point.

Nevertheless, in many other fields Chinese workers -- such as construction workers, cooks and massage therapists -- can be globally competitive. The Chinese authorities could work on branding such fields and supporting industry associations to develop professional standards and grading systems. Especially Chinese cooks and massage therapists could be very competitive and eventually dominate the world market, for those are among China's traditional areas of excellence.

If the Chinese authorities can build the image of Chinese workers into a high-quality brand, like the Filipino maids, within the next five to ten years, the idea of China rising and surpassing the United Kingdom and the United States could be more than just empty talk.