Special Topic: Finding and Keeping Jobs in China

In the first segment of this interview - Contract work, visa intricacies, and the 183 day rule – An interview with Tim Burgess, pt 1 – we talked with Tim Burgess from Access Financial Counsel LLC and Access Business Counsel about the challenges facing Chinese companies and their expat employees. In part 2 Tim fills us in on the benefits of being a contract employee and what the troubled economy means for expats in China.

Special Topic: China Visa Guide

Where are these highly skilled imported contractors coming from?
From all over the world - it’s really a mixed bunch. Its one of the most enjoyable aspects of dealing with contractors is having a team of people from different countries and backgrounds who work well together. The world is getting smaller and smaller!

I can see why contract workers are attractive to employers, is being a contract worker good for the employee?
Of course! Contracting has many benefits and you could make a strong argument that contract work is much more attractive to the contractor than to the employer.

Contractors earn significantly more than permanent employees. As a general rule a contractor earns 200% of a permanent employee for the same role.

Contractors gain experience of many different companies & industries. This means they see a wider range of problems and learn a greater number of solutions than people who are only exposed to one environment. In project based roles this is a huge advantage.

Contractors also have constant new and interesting challenges with each new job. It’s hard to get bored!

Contractors aren't involved in workplace politics. They aren't there to fight for promotion or get into power struggles, just to do their specific project.

Additionally in western economies many companies view employees as commodities. They hire in good times and as has been well documented recently, they fire at the first sign of a downturn. Many of the supposed benefits of permanent employment such as job security, career progression, training, stability are in fact not delivered. Contractors take the responsibility to maximize their own skills, to chart their own careers by picking their roles carefully and supplementing their work with training as they see fit. For example if you're a great computer programmer and you love this role, perhaps you don't want to work for a company where the natural progression is to become an IT Manager - maybe you'd prefer to work on new and exciting projects using the latest technology and earning the highest salaries available.

Of course it’s possible to move between contracting and permanent work and often it’s good to do a combination. During periods when someone wishes to move up the career ladder then permanent work is best. But when you find the role you are happy with and want to make the most of your skills, contracting is more rewarding.

What are the legal and tax intricacies of working in China?
It takes a lot of research to know the rules. Then of course these rules are changing. More to the point the agencies that enforce the rules are applying them more strictly. It’s very important to know that everything is compliant - employment, immigration and taxation. The penalties are quite harsh for individuals and even more so for companies.

Why did Access Business Counsel open an office in China?
We've looked at China for a number of years as an emerging powerhouse, but ultimately it was the demand from our clients that brought us here.

Do companies in China – foreign or Chinese – have trouble bringing in foreign workers?
As long as the procedures are followed it shouldn't be a problem. Of course there are companies who run into a lot of problems because they don't know the rules. That's why is best to work with specialists in the field.

There is a serious shortage of jobs in China, or way too many workers, does bringing in foreign contract workers exacerbate the problem?
We're talking about quite different things. The shortage of jobs is mostly in the unskilled area. It’s widely documented that there are massive shortages of skilled labour. As discussed above there are long term strategies to resolve this, but in the short term the problem is how to keep companies efficient and how to fuel China's emergence. Foreign skilled contractors make a crucial contribution to this. If China wants to really compete in the global market and move up the value chain then companies here need to offer the same level of services and sophistication as developed economies. This will increase the success of Chinese businesses and create more jobs!

What is “the often abused H visa”?
The H Visa is designed for short term business trips to China, not for people working.

How does the government feel about the importation of foreign workers – are they making it easier or harder for foreign contractors to get in?
It’s not for me to say how the government feels, but the evidence is that they are becoming more aware of the number of foreign workers in China, of the revenue they are earning and tax that they are paying. It poses challenges and opportunities. The government has been very supportive of foreign workers and their contribution to the long boom.

What is the 183 day rule?
In simple terms if a foreigner is in China for more than 183 days of any year they should be paying tax in China. Of course it depends on what they are doing here and which country they are from. In fact the 183 day rule only applies to nationals of countries who have a dual taxation agreement with China. For everyone else it’s a 90 day rule.

What is China doing to deal with the current financial problems?
It’s not my area of expertise but I understand there is a focus on infrastructure investment, internal development, and maintaining employment levels as much as possible, and providing opportunities in regional areas.

What is the economic downturn doing to contractor flow – are more workers staying in their home countries or are they more willing to head to China or elsewhere to work?
Contractors are leaving countries where the downturn has hit hardest. This means the USA, UK in particular. Why stay in a country when it’s in recession? As a result China is looking very attractive to foreign workers right now. Even with the fall in production there is still growth, there are still skills shortages and there are still excellent opportunities. As mentioned before it’s a great time for Chinese employers to look to bring in foreign workers.

AFSS does visa services – is it easier to get a visa now the Olympics are over?
It is becoming less strict, but some of the controls will remain in place. We anticipate that the immigration controls will undergo some significant changes in the next few years to streamline the system and better regulate entry categories and requirements.

Do you think the economic problems in the US will bring a larger flow of expats to China looking for work?
Yes, see above.

Special Topic: Finding and Keeping Jobs in China

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