The Great Laowai Exodus: Why Foreigners Are Leaving China
Beginning in the 1990s, with China steamrolling into the 21st century, foreigners from around the world flocked to the Middle Kingdom for a chance to live the Chinese dream. Soon China became known as the new land of opportunity, and everyone from international bigwig CEOs to those who simply couldn’t find a job back home inundated China.
Recently, though, it seems that the glory days of the past are long gone – “twice as many people [i.e. foreigners] moved out of China than into the country in 2017,” according to a February 2018 Wall Street Journal Blog. And if you thought this was a regional trend, think again. The same article states that twice as many people moved to Japan in 2017, while Singapore and Malaysia’s expat numbers stayed constant. The Great Laowai Exodus has begun, but why?
Fewer Opportunities
Nowadays there aren’t nearly as many job opportunities as there used to be since foreign countries taking a greater slice of China’s pie. With large populations, lower costs, and less bureaucracy, developing places like Vietnam and Indonesia, along with developed countries like the USA, are taking away the numerous manufacturing jobs China used to have. In return, these massive internationals are taking their foreign staff and job openings with them. As outlined by a 2017 Forbes article, “A survey by the Hackett Group consultancy found that 46% of executives at European and North American manufacturing companies said they were considering returning some production to the United States from China.”
Manufacturing isn’t the only sector being affected negatively; other industries are packing their bags as well. Dan Harris from the China Law Blog in a March 2017 piece titled “China’s Golden Age for Foreign Companies Is Over” lists some of the reasons why so many multi-nationals are bouncing. He states that obstacles on market access, higher costs, China’s opaque rule of law, foreign companies being singled out by the government, the sense of some foreign firms not feeling welcomed, along with many other factors, leave companies no other choice but to flee. There is clearly less job opportunity now than there was 10 years ago.
Pollution
Speaking from personal experience and as an asthmatic, this is the number one thing that makes me consider leaving China. Based off data from a 2017 Forbes article, China’s pollution problem is actually improving slightly, making India the new pollution capital of the planet. But even though India is much more polluted than China, the world is more aware of China’s toxic air from documentaries such as “Under the Dome,” mobile phone apps, and the US embassy and consulates listing their own uncensored AQI (air quality index) readings.
Furthermore, many of the health effects from children breathing in air pollution for decades are beginning to surface. By some estimates, China’s pollution related deaths are up to a staggering half a million per year! And this number doesn’t include the deaths from water, food, and other kinds of contamination that are prevalent all over the country. No wonder many expats, especially those with children, are saying zaijian, while those who get job offers to move to China are saying bu yao despite handsome expat packages.
Economic Woes
During the summer of 2017, China’s stock market collapsed. About a third of the A-shares on the Shanghai Stock Exchange were lost within the month of June, and a few aftershocks rocked the economy again on July 27 and August 24. On the first week of trading in 2018, China’s stocks fell more than 7%, causing a circuit breaker to halt trading. China’s economy has also been severely weekend by the yuan’s devaluation, which fell 4% against the dollar within two days in August, and has continued to slide to nearly 6:1 since– reverting back to 2011 levels. China’s GDP has also slowed to 7% in 2017, making even the government declare that the days of 10% growth are over, with 7% becoming the “new normal.”
Another anguish is the rising costs of living. Based on a December 2017 CNBC report, Shanghai and Beijing (and Hong Kong) are all currently ranked in the top 10 of world’s most expensive cities for expats, while Guangzhou and Shenzhen lay in the top 20. If we also take into consideration that a new law requires foreigners to pay a social security tax, that wages aren’t rising nearly enough to keep up with rising costs, and the aforementioned devaluation of the RMB, salaries aren’t a driving force drawing people to China anymore. Instead, it’s pushing people away.
Visa Crackdowns
The BBC covered a story in 2014 about how China has gotten serious about kicking illegal immigrants out of the country. The year after, the Huffington Post wrote of how the PRC was ridding the country of foreign journalist. In 2014, The Globe and Mail reported that China was cracking down on foreign missionaries. Recently, NGOs are even finding themselves expelled from the PRC. This new anti-foreign policy clearly affects the number of expats living in the Middle Kingdom and also deters those wanting to move here.
The government is also raising the bar for foreigners entering the country. A large portion of expats living here are English teachers. Back in the day, anyone who could string a few sentences together could become an English teacher. Not anymore. The new rules require that you’ll need a university degree, a TEFL certificate from a reputable institution, and at least two-years teaching experience. For non-English teachers, new visa regulations state that you need a university degree along with two-years work experience in that particular field. Also, applicants must return to their home country to receive an F visa instead of using an agent, adding another burden on the shoulders of foreigners looking to reside and/or relocate to the Middle Kingdom.
And Many More
The major factors of why foreigners are leaving have been outlined above, but there are several others that add straws to the camel’s back. One is censorship. Let’s be honest, it’s a royal pain in the @$$ using internet in this country. Facebook, Google, reliable news sources, Youtube, and many others are blocked courtesy the CCP. Yes, we can use VPNs to dig a hole under the Great Firewall, but the government has also made it difficult for VPNs to operate recently.
For some, China just isn’t as cool as it used to be. I remember when I first got here in 2008 the country still seemed like such an exotic land. Now, with so much development, parts of the country have lost its charm with massive Nike advertisements, Burberry scarfs and Audis. Even the tourist destinations are fake and plastic. For example, parts of the Shaolin Temple have been bulldozed to make room for more modern structures. For others, the cultural differences (i.e. burping, slurping, cell-phone shouting, pushing and spitting) are just too much to handle, making them want to leave the country for good.
Finally, China isn’t as safe as it used to be. Even though China has the same violent crime rate as France and is still much safer than the United States, crime is on the rise. But something really disturbing expats is increased crime against foreigners. According a January 2017 Beijing Cream article, groups of gangs have been attacking foreigners with bats and metal rods. The gangs are reported to be attacking foreign men with Chinese female friends or girlfriends, but there are other cases of foreigners getting beaten up merely for the sake of being foreign.
If you are an expat who has left or is considering leaving China, please feel free to leave your reasons. We’re curious to hear your thoughts.
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