Guanxi is a personal connection between two people strategically persuading and utilizing one another to perform a favor or service. <br /> <br />Guanxi is usually not used to describe relationships within an immediate family. <br />
Housing</li></li></ul><li>Pay Scales in China<br />
Average pay in China $2400 annually<br />Pay in particular jobs for comparison<br />Teachers make 1500-2000 RMB <br />Professor make 3000 RMB ($439) monthly<br />Doctor makes average $10,000 annually<br />Changes since their recession 1997<br />Difference in pay between Tiers<br />120 Million migrant workers making 500 RMB ($73) monthly in a city<br />Keep in mind cost to live is much cheaper than here<br />
The system in China<br />Retirement age is 50 for women and 60 for men<br />Aging population and one child rule affecting the solvency of China’s plan<br />How paid to retirees<br />Migrant workers cashing in<br />
Rising cost of Housing in Cities<br />Mortgages<br />Government controls of cost in market driven housing<br />
Future of Employment and Business Implications<br />
The new generation of leadership in China<br /><ul><li> Everyday many Chinese students are graduating from the universities to become and accept the challenges of a new generation of Leadership in Business and Management in China.
Chinese Blue-collar workers are no longer willing to labor for low wages in manufacturing.
Chinese workers have lost the fear of going hungry, so they have become more selective about employment.
At the white-collar level, most multinationals need to rethink their human resource strategies. </li></li></ul><li><ul><li>The overwhelming reason younger white-collar workers leave their jobs is not because their salaries are too low but because they see no career opportunities there.
The participation of women at the workplace arena has increased substantially.
Companies need to have local leaders who are paid as much as foreigners
They need training programs, overseas rotations and clear paths for advancement.
Young workers are demoralized knowing that expatriates get excellent pay packages at places where there are no mainland Chinese executives.</li></li></ul><li>China huge economic leverage<br /><ul><li>China's rapid economic expansion outpaces growth in the United States, 8.9 percent in the past quarter versus 3.5 percent in the U.S.
China is the dominant regional player in northeast Asia area.
China’s economic expansion has led to a demand for raw materials from countries around the world.
Rapid expansion of China's presence in countries such as Guinea, Myanmar, Sudan and Venezuela. Despite the controversy of some human rights groups that have said that China is taking direction to some repressive regimes to secure its access to important raw materials.</li></li></ul><li><ul><li>Since barriers and differences are evaporating. We are living in a global world now where barriers are meaningless and the world, in a business sense it is flat.
Regardless what kind of business you are in, you will be affected by what is happening in China.
China consumes both human and natural resources at an amazing rate.
All businesses today better start preparing for this competitive dragon that will change the balance of power in the world.</li></li></ul><li>“Study and work hard, because someone in China wants your job.“<br /> Gregory P. Smith<br />
Thank you for your attention<br />Questions?<br />
References<br />Cai, A. (2006, July 21). China's Pension system faces major reform. Asia Times .<br />China Average Salary Income. (n.d.). Retrieved Nov 14, 2009, from www.worldsalaries.org: http://www.worldsalaries.org/china.shtml<br />Fu, M. (2009, Nov). (R. Motilall, Interviewer)<br />Leung, T. (2009, Oct / Nov). Project Manager. (M. J. Sandretsky, Interviewer)<br />Naim, T. (2006, Summer). Time to Share. The Recorder , p. Special Report.<br />Salary - Teach China. (n.d.). Retrieved Nov 2009, from Abroad China: http://www.abroadchina.org/salary.asp<br />Systematic government theft of migrant workers' retirement pensions. (n.d.). Retrieved Nov 14, 2009, from China Labor News Translations: http://www.clntranslations.org/article/31/systematic-government-theft-of-migrant-workers-retirement-pensions<br />Tax System in China. (n.d.). Retrieved Nov 2009, from Wikipedia: http://en.wikipedia.org/wiki/Tax_system_in_China<br />Zhang, J. (2009, Oct). Tour Guide. (M. J. Sandretsky, Interviewer)<br />Arbitration Needed. (2009, July 30). Economist .<br />Dickinson, S. M. (2008, November 8). Power to the People. China International Business .<br />Wang, J. (2009, October). Licensed Tour Guide. (J. Thom, Interviewer)<br /> <br />