Some believe that after the 20th National Congress of the Chinese Communist Party, many international talents will quickly leave China.
Chinese economist Davy Jun Huang analyzes three main reasons for this trend.
First: Worsening U.S.-China relations
According to Chinese economist Davy Jun Huang, U.S.-China trade relations have been tense in recent years. That’s why the White House has imposed sanctions one after another on mainland China’s technology sector this year, focusing on the chip industry.
With the latest round of limits in September and October, Chinese imports of chip-related products have come under enormous pressure. This has caused foreign talents in this field to leave China.
Many engineers have withdrawn from Chinese fabs such as Huawei, YMTC, Shanghai Integrated Circuit, Hangzhou Jihai Semiconductor.
According to the Wall Street Journal, at least 43 American executives holding top jobs at 16 Chinese chip companies, such as CEOs or vice presidents, are in deep limbo.
The latest U.S. policy targets returnees, Chinese Americans working in China, and high-tech workers. The policy only allows them to “pick one.” If they want to keep their U.S. citizenship, they must return to the United States and stop working in mainland China. Otherwise, they would lose their citizenship. The new rules would force these talented people to leave China.
The second reason for talent departure is the worsening of relations between China-E.U.
In the last few years, the human rights issue has stalled the relationship between China and Europe. After the Russian-Ukrainian war, the relationship between Beijing and Moscow has been the center of attention. Due to Beijing’s strong support for Putin, E.U. talent is hesitant to work in China, so they decided to leave to avoid the risks of sanctions.
Third: The zero-COVID policy is the next reason for talent flight.
According to the economist Jun Huang, the zero-COVID policy has been in place for almost three years, and it will likely stay that way. Due to this draconian policy, life quality, personal safety, employment, adaptability, cost of living, the rule of law, and social and business contacts have all changed.
In Hong Kong and Shanghai, where a lot of international talent has gathered, the question of whether or not to leave has become very heated.