Recruiting in China

NEW YORK (Reuters) - Citigroup Inc plans to almost triple its workforce in China by hiring up to 7,500 people in the next three years, an executive told Bloomberg in an interview published on Tuesday.

Citigroup, which has 4,500 employees in China, will hire more in that country that in any other Asia-Pacific market, according to Bloomberg's interview with Stephen Bird, Citigroup's co-chief executive officer for the region.

The hiring plans will support Citigroup's efforts to expand in the region and compete with HSBC Holdings PLC and Standard Chartered PLC .

Bird told Reuters last week that Citigroup planned to open two branches a month on average in China for the foreseeable future, the maximum allowed by regulators.

The company's strategy "is progressively more weighted to emerging markets," Bird told Reuters. "Greater China is the future."

Citigroup plans to double its number of branches in Hong Kong to 50 by the end of the year and increase the number of branches on the mainland to 38 by the end of the year, from 29 currently.

A Citigroup spokesman did not immediately respond to a request for comment on Tuesday. The company's shares were trading up less than one percent, at $3.70, by mid-afternoon.

According to the Manpower Employment Outlook Survey results released today by Manpower Inc. (NYSE: MAN), hiring expectations in emerging markets -- China, Taiwan, India and Brazil -- continue to outpace the rest of the world. Meanwhile, employer hiring confidence in European countries is mixed with positive job prospects reported in Germany for the quarter ahead. And although hiring plans in the U.S. are stronger compared to one year ago, the cautiously optimistic hiring pace reported for the next three months indicates economic concerns continue to weigh on the minds of American employers.

"We're seeing a multi-speed recovery in the global labor market with talent demand in high gear in many of the emerging markets we survey. Other markets, such as the U.S. and Japan, are still moving forward but can't seem to get out of first gear," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "Employers in many markets continue to struggle with inconsistent demand for their products and services making it difficult to anticipate staff needs. As a result, a flexible workforce strategy will be critical during this point of the recovery cycle."

The Manpower data shows employers in 28 of 36 countries and territories expect positive hiring activity in the fourth quarter, with those in five reporting negative hiring expectations -- an improvement in comparison to the 12 countries reporting negative outlooks 12 months ago. Globally, employers in 32 countries and territories are reporting stronger year-over-year outlooks, with those in China, Taiwan, India and Brazil indicating the strongest fourth-quarter job prospects. Notably, forecasts from Chinese, Swiss and Taiwanese employers are the most optimistic since Manpower began polling there. The weakest hiring plans for the upcoming quarter are reported in Greece, Italy, the Czech Republic, Spain and Ireland.

Across the Asia Pacific region, year-over-year forecasts improve in each of the eight countries and territories surveyed, with forecasts improving from the third quarter in three. Hiring plans in the region are strongest in China, Taiwan and India. Meanwhile, employer hiring plans in Japan are the most conservative in the region, but they are considerably stronger compared to one year ago.

"Continued strong domestic growth is fueling stronger job prospects in all industry sectors in China and Taiwan from three months ago. As a result, the talent wars are waging again as companies struggle to retain the talent they need," said Joerres. "In contrast, Indian employers expect to ease the pace of hiring slightly. Interestingly, our data reveals a bright spot in the Japanese Manufacturing sector, where hiring expectations have improved for six consecutive quarters and are the strongest in two years."

Similar to the third quarter, fourth-quarter hiring expectations remain mixed in the 18 countries surveyed in the Europe, Middle East and Africa (EMEA) region. Employers are reporting positive Net Employment Outlooks in 10 countries, but those in 11 expect the pace of hiring to soften from three months ago. However, the year-over-year comparison is more positive with improved Outlooks reported in 15 of 18 countries. Hiring activity in the region is expected to be strongest in Switzerland, Norway and Poland and weakest in Greece and Italy.

"European labor markets have yet to gain real traction due in part to the uncertainty in Greece and Italy. But we are seeing notable improvements across the region in the Finance and Business Services sector, where year-over-year forecasts improve in 15 countries, most notably in Switzerland, Germany and Norway," said Joerres. "The German labor market continues to be resilient; however lack of talent, especially engineers, healthcare professionals and sales staff, is becoming a real issue for employers in many sectors."

Across the 10 countries surveyed in the Americas region, employers anticipate varying degrees of positive hiring activity. Outlooks improve in six countries from three months ago, but improve in all countries when year-over-year comparisons are made. Regional hiring plans are again strongest in Brazil, Peru and Costa Rica and weakest in the U.S., where hiring plans are relatively stable from three months ago but are notably stronger than those reported one year ago.

"Hiring confidence has returned to the majority of the region with employers in Brazil, Canada, Mexico, Panama and Colombia reporting their most optimistic plans of the year," said Joerres. "Brazilian employers in the Services sector continue to create jobs at a rapid pace and in many industry sectors wage arbitrage is becoming an issue for both professional and skilled trades roles. Meanwhile, in the U.S. most of the hiring that was done in the third quarter will be absorbed, yet negative outlooks are reported for just two sectors -- Construction and Government. U.S. job seekers can expect to find the most opportunities in the Wholesale & Retail Trade and Mining sectors in the quarter ahead."

By Chris Devonshire-Ellis and Richard Hoffmann

Aug. 27 – A recurring theme over the past two years for expatriates wanting to be based in China is the subject of possessing a criminal record. These may of course be for relatively minor offenses; however China’s policy in this regard can be strict.

A standard requirement (although it is not always requested) for expatriates looking to work in China is for a “Certificate of No Criminal Record” to be provided when applying for a work permit. This is a particularly strict requirement in Shenzhen and Guangzhou, though less so in Beijing and Tianjin. Providing this certificate means having to go to your local police station in your home country and obtaining one. Different countries have different systems for providing such a document, and some smaller countries can even issue this from their embassy in Beijing. For most expatriates seeking employment in China, however, this needs to be obtained from their local police authority in their home country.

The same also applies to having a criminal record in China. However, criminal records are not usually recorded in China on a national basis. Therefore, it may be possible if in possession of a criminal record in China – if the authorities have not already deported you – to apply successfully for such a work permit in a different region of China. The best advice is of course to not commit criminal acts in China. You risk your job, simple as that.

A little known aspect of China’s laws also criminalizes debts of over RMB10,000. That means that if a foreign invested company has become insolvent or bankrupt, unless the debts, including all staff obligations, taxes due and so on are met by the parent company, expatriates simply walking away from the situation risk being found guilty in absentia. This is of particular pertinence to the chief representative or legally responsible person. In these positions, the title means exactly what it says – responsible for the activities of the company, including its debts.

People can be incarcerated for long periods over debts incurred by their company in China. Returning to China knowing that you have such a background then is unwise. Expatriates’ personal data is now shared on a national basis, and even if one manages to apply for a work permit in a different city, a sharp-eyed clerk somewhere may mean a knock on the door sometime later.

The lesson for all expatriates in China is to pay your debts, and keep out of trouble. You may not get a second chance.

Foreign-invested companies in China facing significant problems in which closure becomes necessary must take the appropriate actions when doing so. Leaving China with unauthorized debt places you at significant future risk should you wish to later re-enter the China market. It is far better to negotiate with creditors than face prosecution. Most of the obligations under such circumstances can be dealt with through negotiation, and require the provision for creditors meetings. Although unpleasant, these do allow for the company to state its position firmly, abide by the rules, and decrease the amount of outstanding debt. While creditors can usually be dealt with, staff and any outstanding tax matters do need to be settled. The procedure for closure also requires an audit.

We have recently provided update advice and the procedural structure on this subject, please see the China Briefing issue “Closing Representative Offices and Liquidating Businesses in China” for more information.

Chris Devonshire-Ellis is the principal of Dezan Shira & Associates. Richard Hoffmann is a senior legal associate with the firm and is responsible for issues relating to expatriate employment and human resource legal and administrative matters in China. If you have queries about obtaining work permits in China, please contact Richard at legal@dezshira.com. Businesses requiring advice on liquidation procedures and related matters may contact Sabrina Zhang, national tax partner for the firm, in strict confidence at tax@dezshira.com.

By Bloomberg News

Aug. 23 (Bloomberg) -- China will crack down on foreign companies directly recruiting and hiring workers in China to do manual labor overseas, the Ministry of Commerce and the Ministry of Foreign Affairs said in a joint statement posted to the commerce ministry’s website today.

The government will also stop Chinese companies from sending labors from the nation to work overseas for foreign individuals, according to the statement. China will also strictly control the sending of Chinese labors to work in overseas nations where conditioners are worse than those domestically and where risks are high, according to the statement.

China Investment Corp., the nation’s sovereign wealth fund, is starting a new round of international hiring to meet its “business development needs,” according to a statement today on its website.

The company is offering 64 positions from asset allocation to private equity investment, with jobs posted on its website.

The $300 billion fund will seek a “more flexible” investment strategy this year as global markets didn’t show a clear trend, Executive Vice President Jesse Wang told reporters in Beijing in March. The company earlier this month sold 5.1 million shares in Morgan Stanley after the stock rallied.

CIC is likely to report a return on its global portfolio “well above 10 percent” for 2009, according to Rachel Ziemba, London-based senior analyst at Roubini Global Economics, after it accelerated investments in commodity-related companies.

CIC in June, 2009, provided vacancies for 33 categories in 13 departments. The company had about 200 employees, according to its 2008 annual report released Aug. 7 last year.

Google has started a large-scale recruitment campaign on the Chinese mainland. Google's recruitment ad showed that the firm is seeking employees covering 26 positions in research and development, products, sales, operation, IT, human resources and marketing.

According to the notice posted, most jobs would be in Shanghai and Beijing but it did not elaborate the quantity of employees the firm is to recruit.

Ever since Google announced its exit from the Chinese mainland this march, many employees of the company have been contacted by domestic internet firms on the purpose of being hired.

The company now sees itself without a few senior officials. Former vice director of Google China R&D Center, Wang Jin, Song Zhongjie, Google China's general manager for sales, and Liu Jun, assistant dean, who was in charge of web search development in Google China Project Research institute all have left their positions.

According to Iresearch, Google's market share in the second quarter declined to 27.3 percent, while its counterpart, Baidu, boasted 70.8 percent. Some of the company's agents like Tianya, also cut off relations with Google.

While industry analysts were worried about the company's development on the mainland, Yu said that its current situation is temporary, and its market grip will be gradually regained.