The human resource challenge to outward foreign direct investment aspirations from emerging economies: the case of China

Abstract

The continued influx of foreign investment into China and the growing desire by indigenous Chinese companies to invest abroad have created an unprecedented demand for people who possess competencies to compete successfully in a global economy. Without this pool of human talent, China's economic growth will slow and its outward foreign direct investment aspirations will be thwarted. This paper presents two inter-related studies that can shed light on China's ability to meet this human resource challenge in the years ahead. The first study pertains to the intention of a sample of Chinese university students in Canada to return to work in China upon graduation. Most Chinese students were receptive to the idea of returning to China. The second study examines the willingness of non-Chinese university students to work for Chinese firms overseas or in China. In general, non-Chinese students were more willing to work in the North American operations of Chinese companies and less so in relocating to China. These two surveys are supplemented by in-depth interviews with Chinese who have returned to work in China and those who chose to remain overseas. The implications of these findings, both theoretical and practical, are discussed.

Keywords:

• Boundaryless careers
• Chinese outward foreign investment
• competitiveness
• emerging economies
• ex-host country nationals
• global workforce
• human resources
• reverse migration

Acknowledgement

An earlier version of this paper was presented at the Annual Meetings of the Academy of International Business, Beijing, China, 23–6 June 2006. This research is made possible by a generous grant from the Social Sciences and Humanities Research Council of Canada, Project # 639560.