JESA INVESTMENT &
MANAGEMENT CO.,
CO. LTD.
In this issue:
n Right people in right places: up to the challenge
n Il 13esimo Piano Quinquiennale cinese:
le priorita’ di Pechino
echino e le opportunita’ per le
societa’ estere
n China’s 13th 5-years-plan:
plan: main priorities and
opportunities
NEWSLETTER – JULY 2015
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Right people in right places: up to the challenge
For it envisages high degrees of professionals’ turnover, the
t
Chinese labour market can be deemed a “liquid market”. This
By Alessandra Mischiati, Tommaso D’Amico, Enrico Borsari, Giovanni
Pastore – Jesa
Human resources’ selection and identification is a key process
for the successful development of a company in China. Any successful
hiring process should begin by mapping the ideal candidate in terms of
role and responsibilities, skills and experience, aptitude
itude and traits.
From here on out, the focus must switch to what ideal candidates want.
want
Between companies’ requirements and candidates’ expectations there
is an ocean of complexities ranging from national labour laws and
organizational flows to common practices and cultural fits that
managers cannot ignore when doing business in China.
precondition should underlie any hiring strategy triggered over China.
China
Recruiting
ecruiting managers should elaborate strategies able to first attract
and then retain sought-after profiles. However, before defining any
kind of hiring approach,, companies need to know what sort of
incentives they have to set up so as to attract candidates.
Although compensation
ompensation is still a key priority
pri
for job seekers in
China, this is not the only parameter companies should use to pull and
retain talents. Other than salary, compensation packages must gather
together better benefits’ suites. Of course,
se, ensuring better benefits is
meant to be a never-ending process. Indeed, as
a the market frequently
changes, companies are required to review benefits and salaries on a
constant basis so as to be sure of their alignment with competitors’
compensation policies.
Even though remunerative packages allow targeting profiles
while fulfilling pre-established
established budget constrains, the mere use of this
incentive might lead anywhere but straight to the best profile. Either
the misconception or the total disregard of cultural and background
differences between China and the mothercou
country drives companies
far from the chosen target. For instance, what is mostly required by
Chinese candidates and what might be overlooked by foreign comco
panies is the necessity to assure a “work-life”
life” balance possibly refined
and tailored for individual candidates.. Although different ages put
different emphasis on it, interestingly, work-life
work
balance is a key
priority for alll individuals in the workplace. Such a parameter reaches
its peak of importance for Chinese talents in their mid-age
mid
(late 30s
and 40s). Indeed, for
or they are living the age of the family
fam
responsibilities, child rearing and caring elderly relatives is a priority.
priority
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
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YOUR PARTNER INFAST
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Nevertheless, they are experiencing an important phase in their
opportunities and 74% has an up-to-date CV. The implication of such a
professional growth. To find companies able to assure such a balance
result is that Chinese professionals and senior executives carry a
become a top priority.
certain propensity to be curious. But what
hat starts with curiosity could
lead to more serious issues for employers: how to avoid their eme
Foreign companies settled in China need to move away from
ployees to be curious, in other terms, how to retain them. Once again
perspectives and habits gathered through years of experience in
we are at the very beginning:: recruiters must know who the talents
western environments. In several cases profiles’ research is carried out
they are looking for are and what are the best-matching
matching incentives sets
based on headquarters workflow’s schemes and organizational charts,
for different individuals. It goes without saying that the
t
effectiveness
ignoring structures and precautions best matching the Chinese labour
of any retaining strategy is deeply rooted in the continuous update of
market. Multinational corporations should always bear in mind that
benefits schemes.
different countries require diverse organizational charts, which in turn
leads to job positions and duties not necessarily aligned with traditional
profiles.
Hiring in China is a complicated and time-consuming
time
process.
Professional recruiting methodologies should be well applied and
customized in order to meet both corporations’ needs and local labour
Best performing firms recognize that traditional recruiting
methods are not applicable in the Chinese environment and avoid
market unwritten rules. The latter is nothing but a great opportunity
for companies to self-transform and grow.
undertaking a simplistic approach to hiring.. More and more HR
managers rely on a complex, multi-pronged
pronged and people-focused
people
approach to find, select and retain best talents. The complexity of such
a task often prompts companies to approach recruitment agencies.
agencies In
2015, 67% of the companies established in China gives head-hunting
head
the highest rate of efficacy, while 46% and 43% of them still combine
recruiting agencies with personal networks and online job boards
respectively.. Finding the appropriate candidates is getting more and
more difficult, and companies need to tailor and mix sourcing
strategies to reach out the desired result.
If attracting and recruiting ideal employees in China is not
simple, retaining talented personnel
sonnel is even more challenging. The 97%
of
Chinese
professionals is
open
to
hearing
about
new
job
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
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YOUR PARTNER INFAST
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Il 13esimo Piano Quinquiennale cinese: le priorita’ di Pechino e
le opportunita’ per le societa’ estere
By Saro Capozzoli, Stefania Bianco, Marco Nugnes, Gianluca Lazzarin,
Lazzarin
Obiettivi economici chiave
Obiettivi non economici chiave
•PIL annuale: incremento 7%
•Consumo
Consumo carburante nonnon
fossile: incremento 11.4%
Enrico Borsari – Jesa
• Urbanizzazione: incremento
4% (47% al 51%)
Negli ultimi 30 anni l’economia cinese è cresciuta costantemente. Il PIL
•Spesa R&D : soglia minima
2.2% del PIL
è avanzato mediamente del 10% all’anno e il tasso d’urbanizzazione
nello stesso periodo ha raggiunto quota + 250%. Il rapido sviluppo ha
permesso a milioni di cittadini dii uscire dalla soglia della povertà ma ha
• Consumer Price Index:
minore o al massimo pari al
4% annuo
•Emissioni
Emissioni di CO2/unità di PIL:
riduzione 17%
•Copertura
Copertura forestale:
incremento 21.66%
•Agenti
Agenti inquinanti COD e
diossido di carbonio: riduzione
8%
anche sollevato la questione della sostenibilità. Se è pur vero che la
crescita cinese non ha avuto eguali è da sottolineare come il prezzo
dello sviluppo sia stato pagato principalmente in termini ambientali. Ad
oggi la Cina, la cui popolazione è fortemente assoggettata agli effetti
dello squilibrio ambientale risulta essere uno tra i paesi che più
contribuiscono all’inquinamento globale. Queste tematiche erano già
Tabella 1: Principali obiettivi del 12esimo
esimo piano quinquiennale.
Tutte le variazioni hanno base il risultato provissorio del piano quinquiennale precedente
(100%). Dati KPMG
percentuali), la
a Cina non è al pari con obiettivi quali la quota di energia
ottenuta da fonti non-fossili, l’efficienza
efficienza energetica e la riduzione del
consumo di carbone.
state oggetto di confronto durante il 12esimo piano quinquennale
quin
(2011- 2015) durante il quale venne enfatizzato il concetto di “crescita
13° Piano Quinquennale: probabili direzioni
sostenibile”.
le”. Ciononostante, con il 13esimo piano quinquennale già alle
porte, molte delle tematiche legate all’eco-sostenibilità
sostenibilità della crescita
economica rimangono irrisolte.
Come si evince dalla tabella di cui sopra, oltre a target di stampo
economico, il 12esimo piano quinquiennale identificava anche obiettivi
quali sostenibilità ambientale ed efficienza energetica. Nonostante
tutti i target economici siano stati raggiunti (la
a crescita del PIL si è
mantenuta al 7 percento e l’urbanizzazione è cresciuta di 4 punti
Alcune informazioni riguardo il 13° piano quinquennale sono già state
rilasciate. Tra il 2015 ed il 2020 la Cina punterà sull’innovazione e su
s
miglioramenti strutturali. Ad oggi, uno dei vantaggi competitivi della
Cina risiede nell’abilità di adattare e migliorare
gliorare le tecnologie sviluppate
da competitor esteri ottenendo allo stesso tempo una riduzione dei
costi attraverso l’implementazione produttiva
roduttiva su larga scala. Nei
prossimi anni, il governo cinese si concentrerà sul settore terziario e
sull’alta tecnologia.
gia. Gli investimenti volti ad ottenere un vantaggio di
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
+86 21 62880072 Email: [email protected], Website: www.jesa.com.cn
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YOUR PARTNER INFAST GROWING COUNTRIES
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costo assumeranno una posizione secondaria mentre emergeranno
Barriere d’ingresso nel mercato più basse. Il Paese sta ora
opportunita’ per investitori interessati al processo di trasformazione
domandando più investimenti di matrice straniera. Tuttavia, le
industriale ed al contestuale sviluppo economico cinese.
Enterprise Surveys svolte da World Bank suggeriscono che “l’accesso
Wang Lezhi dell’istituto di ricerca del dipartimento di international
ai finanziamenti” continuera’ a rappresentare la sfida più grande per
trade and economy cooperation, fa notare come gli investimenti
fare affari in Cina. Probabilmente Pechino implementerà nuove
stranieri che hanno lasciato la Cina negli ultimi anni appartengano ad
management
una frazione di imprese mosse dalla ricerca della sola manodopera a
d’approvazione per imprese straniere piu’ snella ed a “maglie larghe”
basso costo. Lezhi afferma inoltre che la porzione di investimenti
che possa facilitare l’ingresso sul mercato cinese.
policies:
ci
si
aspetta
dunque
una
procedura
richiesta dall’industria manifatturiera e’ in calo, mentre e’ in crescita la
porzione richiesta dall’industria dei servizi. Sicuramente la struttura
Nuove opportunità di business. La Cina sta incoraggiando
del futuro sviluppo economico cinese da maggior spazio agli
l’inserimento di soggetti esteri nella “festa dell’innovazione”. Gli
investimenti esteri. Il governo sta promuovendo e continuera’ a
investitori dovranno quindi prestare particolare attenzione a quei
promuovere il consumo domestico, percepito come il prossimo motore
settori che il governo cinese intendera’ incoraggiare e liberalizzare
della crescita. Sara’ la spesa, piuttosto che il risparmio ad essere
maggiormente. Tra gli altri il settore dell’IT technology, della
incentivata.
manifattura di alta gamma, il settore aerospaziale, della robotica e
Zhang
Guobao,
direttore
della
National
Energy
Administration ha dichiarato che per raggiungere tale obiettivo, entro il
quello delle telecomunicazioni-.
2020 lo stipendio medio annuale dovra’ essere doppio rispetto ai livelli
del decennio precedente. A corollario, obiettivi “secondari” del piano
Green energy. La Cina vuole aumentare la percentuale di energia
avranno come fulcro tematiche quali l’ incremento della percentuale di
ottenuta da fonti non-fossili. Il comparto “Green Energy” potra’ godere
energia ricavata da fonti non-fossili, la diminuzione degli squilibri
di una crescita notevole.
sociali e lo spinoso problema dell’inquinamento, tutti target mancati
dal precedente piano quinquiennale.
Il settore dei servizi. I cambiamenti nella struttura della domanda
d’investimenti porteranno il settore dei servizi ad essere connotato da
Opportunità per le imprese estere
una elevata presenza estera. Le aspettative sono di una presenza
La Cina sta provando a trasformare la propria economia in
maggiore rispetto a quella vista fino ad ora nel settore manifatturiero
“technology-driven” e ad elevare la qualita’ della vita dei suoi cittadini
specie nel segmento assicurativo, della salute, del tempo libero e dei
attraverso l’aumento del reddito pro-capite. L’implementazione di
viaggi, cultura e sport.
questo piano economico modifichera’ il modo di fare affari in Cina.
In questo periodo di transizione, quali saranno le opportunità per gli
investitori stranieri?
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
+86 21 62880072 Email: [email protected], Website: www.jesa.com.cn
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YOUR PARTNER INFAST
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Beni d’importazione. Infine, l’aumento della domanda interna e dei
the concept of “Higher quality growth”.. Nevertheless, in the 13th five
redditi medi incrementeranno
eranno il consumo potenziale di beni di lusso
years plan, most of the issues related with a sustainable growth still
creando nuovi mercati per gli storici brand occidentali.
remain. Below, the main targets of the 12th five years plan.
La Cina ha intuito che un’economia forte è fatta sia di fattori economici
sia di fattori non economici. Una crescita sostenibile appare ora come
Key economic targets
Key non economic targets
una delle principali preoccupazioni del governo cinese. Il prossimo
decennio sarà cruciale per la Cina. Le decisioni economiche e le
politiche monetarie di Pechino influenzeranno il futuro della sua
economia ed impatteranno sull’economia mondiale. La Cina non sara’
più un fornitore “silenzioso” e “sfruttato” per la fornitura di
manodopera a basso costo, ma diverra’ un partner alla pari nello
sviluppo di business internazionali.
•Annual GDP: 7% growth
•Urbanisation: increase 3%
(from 47% to 51% )
•Spending on R&D: increase
to 2.2% of GPD
•Hold inflaction (CPI): at or
below 4% per year
China’s 13th 5-years-plan: main priorities and opportunities
By Saro Capozzoli, Stefania Bianco, Marco Nugnes, Enrico Borsari –
Jesa
•Non-fossil
fossil fuel usage:
increase to 11.4%
•CO2
CO2 emissions/unit of GDP:
reduction to 17%
•Forest
Forest coverage : increase
to21.66%
•Pollutants
Pollutants COD/sulfur
dioxide: decrease to 8%
Table 1: China 12th 5-years-plan’s main goals
All of the variations base on the previous 5-years-plan’s
plan’s result (100%). Source: KPMG
As we can see, together with economic targets, other goals concerning environmental sustainability and energy efficiency were setse
In the past 30 years China has been constantly growing. Its GDP
tled. China almost achieved alll the economics targets presented in the
grew around 10% per year on average and China’s urban population
12th FYP. GDP growth’s rate has been kept on average 7 percent and
grew around 250%. The country’s rapid development lifted million of
the urbanization
ation increased by 4 percentage points. However, aca
citizens out of poverty but raised the question of sustainability.
sustaina
cording to a mid-term
term review conducted in 2014, China is behind on
Chinese huge growth has been unequal –the
the gap between rich and
targets such as non-fossil energy usage,, energy efficiency, and carbon
poor increased- and took the country to be one of the most polluted in
reduction emissions
the world. The government has already tired to overcome these
problems in the 12th Five years Plan (2011-2015) which
ch emphasized
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
+86 21 62880072 Email: [email protected], Website: www.jesa.com.cn
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13TH five years plan: likely directions
must double by 2020. The 12th FYP addressed issues such as pollution
and the gap among different social classes. Since China failed to
Some information about the 13th 5 years plan has been released
achieve the expected target during the period between 2011 and 2015
already. Likely, in the period of 13th five-year-plan (it goes from 2015
it probably would repurpose these goals in the 13th FYP, planning to
to 2020) China will push on innovation drivers and structural upgrades.
increase usage of non-fossil energy.
China’s current competitive advantages in innovation lie in the ability
to adapt and improve technologies developed overseas. Further,
Opportunities for foreigners
Chinese enterprises are capable to both achieve cost reductions
China is trying to both shift to a technology-driven economy and
scaling up the production and improve technology’s feature through
become a higher income country. The implementation of this strategy
incremental process innovation. In the next years, Chinese govern-
would modify the way of doing business in China. In this turning trend,
ment will focus on services and high-tech manufacture. Low-cost
what will be the opportunities for foreign investors?
oriented investment would be no longer welcomed in China, whereas
there would be a lot of opportunities for foreign investors to participate
Lower market entry barriers. The country is now demanding more
in China's economic development and industry transformation. Wang
foreign investments. However, World Bank’s Enterprise Surveys
Lezhi, researcher at the international trade and economy cooperation
suggest that “access to finance” is the greatest challenge to do
research institution of commerce department, pointed out how foreign
business in China. Likely, Beijing would implement new management
investments that have left China in recent years were mostly low-cost
policies, the approval procedure for foreign enterprises would be
oriented. The structure of investments’ demand highlights that the
narrow, which means it will be easier and more predictable for for-
portion required by manufacturing industries is decreasing while the
eign-invested company to entry and set up in China.
portion required by service industry is increasing.
Of course, this new economy structure means greater space for
New business opportunities. China is encouraging foreign investors
foreign investments. The government is now pushing and will keep on
to get involved in “the fest of innovation”. Investors have to pay at-
pushing the domestic consumption, perceived as the next major en-
tention to the fields Chinese government is encouraging such as new IT
gine of growth: spending instead of saving. In order to achieve this
technology - and high-end equipment manufacturing –aerospace and
goal, Zhang Guobao, Director of the National Energy Administration
telecom equipment-.
declared that, with respect to 2010s levels, the average annual income
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
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Green energy. China is willing to raise non-fossil energy as a percentage of primary energy. Likely, all the green energy-related sectors
will enjoy a remarkable growth.
The service sector. The changes in the structure of the investment
demand are creating more opportunities for foreigners. The industry of
services would overcome the manufacturing sector, opening new
markets for foreign companies in insurances, housekeeping, health,
travelling, leisure, culture and sport sectors.
Imported goods. Lastly, the domestic consumption increase and the
average incomes would potentially raise the consumption of luxury and
imported goods creating new possibilities for Western brands.
China well understood that a strong economy is made of both
economic and non-economic factors. A sustainable growth appears
now to be one of the main concerns Chinese authorities are worried
about. The next decade will be crucial for China. The decisions Beijing
will take will likely affect the future of its economy and would have a
strong impact on the worldwide economy too. Likely, these drastic
changes would change the dynamics of doing business in China. China
would be no longer a silent supplier exploited because of its low labour
costs but an equal partner in businesses’ development.
JESA Investment & Management Co.,Ltd.,House 4,Lane 112, FenYang Rd., 200031 Shanghai, China
Tel +86 21 64331555, 64335666, 64338787, Fax
+86 21 62880072 Email: [email protected], Website: www.jesa.com.cn
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CONTRIBUTORS
Scott Sun (Supervisor)
Saro Capozzoli
Alessandra Mischiati
Enrico Borsari
Stefania Bianco
Marco Nugnes
Tommaso D’Amico
Gianluca Lazzarin
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Tel +86 21 64331555, 64335666, 64338787, Fax
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