#DidYouKnow: China, and not US, added the maximum number of billionaires in the global economy in 2016. The country’s contribution stands at 67, that’s one billionaire every 5th day!

Majorly due to China’s contribution, Asia (637 billionaires) has superseded US (538 billionaires) in the total number of billionaires per continent.

Currently, the US has a higher concentration of billionaire wealth but Asia will overtake in three to four years. According to reports, the major driver in Asia’s progress in technology.

#DidYouKnow: Tesla fired its workers in the US but is rigorously looking out for 500 recruits in China.

Tesla is looking at manufacturing its cars in China, and not just this, the brand has taken an ambitious project of doubling the number of stores in China in near future.

The country contributes to one-seventh of the net revenue of Tesla despite the prices being 50% higher than in the US. Also, Tesla is poised to kickstart its biggest charging station in the world in Shanghai.

This makes us take a closer look at China and it’s economy’s dynamics.

Despite being a closed economy and plagued with language barriers, China has managed to pull off its position as a global innovation and manufacturing hub.

It is not just standing at par with global giants but is also beating them at their own game. It’s attracting the manufacturers and the best talent.

5 Reasons why China is growing so fast

• Relaxation of permanent-residence requirements and other government support

Firstly, a lot of credit for this development goes to the relaxation of permanent-residence requirements and other government support provided to individuals and organizations alike.

The Chinese government put into effect some twenty measures on March 1, 2016, to attract managerial-level professionals, Chinese born abroad, entrepreneurs, fresh graduates of foreign origin.

Other than this, the Chinese 3.0 leadership, as we call it, is emphasizing the importance of creating new growth drivers that will eventually take over the older economy issues.

This is clearly visible in various industry initiatives of China, they are now even giving implicit approval to foreign investment in technology.

This has been seen over time and also in industry initiatives like the implicit approval for foreign investment in technology.

Chinese entrepreneurs are keen on hiring overseas staff as it helps them build stronger links between international markets and Chinese companies.

From common entrepreneurs to Nobel Laureates, China is becoming a preferred destination for business ideas.

• Promoting a ‘revolving door’ policy

Secondly, China is following the USA’s suite of promoting a ‘revolving door’ policy in the political landscape to encourage a seamless exchange of thoughts and ideas between the government and non-government bodies.

In the US, the think tank staff often engages in government services, and, similarly, former government officials ‘revolve’to replace these think tanks in their organization.

This has been extremely effective in driving technology and business growth in the US. China, on the other hand, had the ‘revolving door’ culture but only partially, it only saw former government employees joining think tanks but never the reverse.

But in the current scenario, the Chinese president, Xi Jinping’s initiatives are bringing a change. In the last two years, he has continuously worked on developing the Chinese think tanks.

In one of his speeches in April 2016, he even talked about the readiness of the Chinese government in recruiting party leadership from the think tank community.

This has lead to a fresh wave of appreciation among the think tank community and their will to stay and promote the Chinese business landscape and as a major reason why China is growing so fast.

• China is attracting talent and businesses from the world.

Thirdly, China is sending out a clear message that it’s on a rigorous reformative mission. The Chinese economy has grown at a faster pace than the global markets.

China’s three-step development strategy which it opted for a way back in 1980 aimed to quadruple its gross national product by the end of the 20th century.

Successful execution of this policy has not just put China at par with the global economies but has left the country with surplus resources and products to share with the world.

In its quest for development, China is attracting talent and businesses from the world.

Success to why China is growing so fast can be explained by what a young entrepreneur, Nils Pihl has to say about the country’s support system for foreign nationals.

“Beijing offered us cheap housing and food, a network of experienced mentors that were happy to take the time to help, steady access to some of the world’s greatest engineering talent at a sixth of the cost of a junior engineer in Silicon Valley and access to a vast market of clients.”

Nils Pihl, originally from Sweden, tried his luck in the Silicon Valley and the New York and then finally moved to Beijing to set up a tech startup.

There are enough examples of such young minds from developed and developing nations who are ready to make China their home.

A policy like this is helping the country encourage the exchange of ideas among its youth.

Chinese youngsters, despite the language barrier, are getting exposed to global trends and are building products for international markets.

• Improved the quality of life of the citizens

Fourthly, China is not just focusing on rapid development but it’s also keen on improving the quality of life of the citizens and countering issues such as wealth gap and pollution.

In a recent speech, President Xi Jinping directed the global giants operating in China to work on employee welfare and ensure better living standards for them.

Over the years, global players such as Intel, Ford, and others have banked on the advantage of being a good corporate citizen and have shared knowledge with local citizens via research centers and startup engagement.

“Multinationals and local companies will need to cope with this agenda of more balanced growth and the focus on the quality of life,” said Weiwen Han, Greater China managing partner for Bain & Co. in Shanghai. He further added, “When they look at China as an opportunity, they cannot seek growth as the primary target.”

Taking a cue from the president’s move, Starbucks Corp., the global coffee brand that has more than 2,800 outlets in China has committed to provide health insurance that covers not just them and their spouse but also their parents.

Other than this, the massive outrage against rising pollution has opened an opportunity for electric carmakers such as Tesla and Anhui Zotye Automobile Co. to push for business expansion.

Even traditional auto manufacturers such as Ford are now talking about venturing into the hybrid cars space.

• Relaxed the rules for Foreign Direct Investment and global partnerships

Lastly, China with its vast population and high rate of smartphone and social media penetration gives enough data for analysis for the companies.

Technology leaders are banking on Big Data generated to feed algorithms and identify trends. These trends will go a long way in defining customer personalization for the brands.

Also, the Chinese government has now relaxed the rules for Foreign Direct Investment and global partnerships, making it an attractive venue for business.  (Also read – Hiring and recruitment challenges in Japan)

China is laying strong emphasis on compassionate capitalism and is changing the rules of business globally. They are ensuring that they attract enough talent from the globe and at the same time build new opportunities for their own.

PS: For more such insights on tech recruitment, we invite you to join our LinkedIn group – “Yours Truly HR”

Arpit Mishra Author 49 Blogs