Why China’s big cities are losing foreign workers even as post-Covid travel picks up

Fewer Westerners are working in major Chinese cities as high-paying jobs dry up amid slow economic growth, with living costs and China’s geopolitical tensions with the West also taking their toll.

But some of those gaps are being filled by professionals from Southeast Asia, as foreign firms increasingly turn to local or regional talent.

Census data shows that while more nationals from developed countries are leaving China, those from emerging markets are taking their place, although the total is still lower than before the pandemic.

Roy Ren, vice-chairman of the European Union Chamber of Commerce in China’s human resources working group, said short-term travellers were returning to China, but fewer foreigners were choosing to live and work in the country than in the pre-pandemic years.

“Foreign firms in China are adapting to the changing environment by adjusting their recruitment structure to focus on local talent,” Ren said, referring to the country’s patchy post-Covid recovery and its impact on the job market.

They were also trying to upgrade the skills of “existing employees by providing them with more training” to meet the shortfall, he added.