Cities Battle for Limited Talent

30/06/2018

urbanisationnews Development

Unlimited labour supply was the driving force of economic growth in many Chinese cities over the past decades.However, as the structure of the economy is upgraded, city governments have started looking for increasingly highly skilled human resources to maintain development.
The launch of new city policies designed to attract such talented professionals is rapidly intensifying with many second-tier cities now becoming popular where they provide more relaxed Hukou (local citizenship) policies.

People were applying for Tianjin's 'Haihe Talents Action Plan.' Image： http://www.teda.gov.cn

Tianjin
The Hukou system is the main barrier for many young Chinese to living and working in the big cities. It provides holders more advantages in employment, education, social security, house purchases and other legal interests.

In May, Tianjin government released the ‘Haihe Talents Action Plan’. This plan has eased Hukou rules, which allows skilled personnel to obtain residence in the city with much lower requirements.

Accordingly, university undergraduates under the age of 40, master's degree holders under the age of 45 and doctoral degree holders of any age can directly now receive a Hukou for Tianjin. The scheme also offers relaxed conditions for skilled people with senior professional titles and entrepreneurial or other urgently needed talents.

The policy changes are considered as the lowest-ever household registration threshold among China’s municipalities (Beijing, Tianjin, Shanghai, Chongqing). As a result, around 300,000 applied to secure the residence online on a single day following the announcement of decision.

​The city's previous Hukou policy was similar to other major cities which worked as the points system, required a longer and more complicated process. 

Similar moves can be observed in other tier-2 cities, such as Wuhan, Fuzhou and Hainan province which have issued a series of favourable Hukou, cash bonus and housing policies to attract young talents.

Ms. Li received a certificate of Hukou transfer in Wuhan. Image：xinhuanet.com

Wuhan
Last year, Wuhan has issued the minimum annual salary guidance standard for college graduates, 50,000 yuan for undergraduates, 60,000 yuan for masters and 80,000 yuan for doctoral graduates.

Wuhan also intends to construct 2.5 million square metres of affordable housing in 5 years for university graduates, allowing the sale or rent of apartments at a price less than 20 percent of market price.
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Graduates with bachelor's degrees under the age of 40 can directly apply for a Wuhan Hukou, while master graduates and doctoral graduates are not subject to any age restrictions.

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Press conference on 'Hainan Talents Recruitment Plan.' Image：hinews.cn

Press conference on 'Hainan Talents Recruitment Plan.' Image：hinews.cn

Hainan
​In May this year, Hainan province also introduced the attraction policies with a target of a million people entering by 2025.

Those who hold college degrees or above, middle-level or higher professional qualifications can apply for a Hukou where they reside in Hainan. Those with a master’s degree, overseas returnees and other outstanding qualifications will be eligible to have their residence registration in any cities of Hainan.
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 Besides the lowered threshold for Hukou, Hainan has also offered housing subsidies for 3 years ranging from 1,500 to 5,000 yuan per month, depending on education background. 

Fuzhou
Fuzhou City has recently issued 'Eight steps for Encouraging the Introduction of High-level Talent.' It rewards various types of skilled personnel with up to 2 million yuan of incentives. It classifie scategories A, B, and C for imported overseas talent and awards 2 million yuan,1 million yuan, or 500,000 yuan respectively on arrival; whereas Chinese recruited persons can be rewarded with 1 million yuan, 500,000 yuan and 250,000 yuan.

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