February 2017

Welcome Back,

We recently did some research on China's new Foreign Worker Permit - a major change to their Visa application system - to stay informed on how this will affect our client companies, expats in China, and the global manufacturing industry in general. There are already articles out there to guide you through the visa application process, so what we offer here are some points on the biggest changes to the application process and what this means for anyone doing business in China. But first, have a look at our featured candidates and positions.

Featured Candidates

Outstanding, China based Controller

This Chinese national is currently in a Finance Director role based in Shanghai and responsible for managing all finance, cost accounting, reporting, and compliance for a manufacturing site, regional business ($200 Million USD). She reports back to a Corporate Controller in the USA and has 7 direct reports including 4 plant controllers across China. Previously, she was a Regional controller which included managing controllers in Philippines, Thailand, China, Taiwan, and Malaysia. Email information@tieronesearch.com for more information.

USA based Director of Human Resources

This candidate has an impressive record of success in managing the growth and development of a North American team across the USA, Mexico, and Canada. He has set the strategy and policies to align with the business goals of this 2.5 Billion Dollar manufacturing business. Over the past 14 years, he has implemented processes/systems to optimize leadership development and succession, talent acquisition, compensation and rewards, labor relations, payroll, technical training, and more. His experience largely lies within the automotive industry, but he is ready to transfer his skills to other industries and can relocate anywhere in North America for the right opportunity. Email information@tieronesearch.com for more information.

Featured Positions

Detroit Area, Sales Manager, Global Automotive Systems Supplier

Our client company is widely recognized as the worldwide leader in its product area. We are looking for an up-and-coming leader that has a proven record of success in managing relationships at GM and/or Ford. In this role you will manage a small team to ensure success of already awarded business as well as manage the advanced sales activity and relationships at the aforementioned OEM’s. The expected base salary is on par with other organizations, but the extras are what makes this attractive (market leading, forward thinking company, lucrative stock purchase program, company car, and more.) Email apply@tieronesearch.com for more information.

Manager of Export Control (Southeast USA)

The client is a global leading supplier to the automotive, industrial and aerospace industries. The successful applicant will act as a strategic advisor on all US export matters (including EAR, ITAR and OFAC compliance) across all of their operating groups. The successful applicant will develop, access and set corporate policy, as well as provide guidance and oversight to development of export policy. Our client is looking for a candidate with 8-10 years of export compliance experience including experience reviewing and interpreting EAR, ITAR and OFAC, experience classifying exports under EAR and ITAR regulations and drafting and rolling out export manuals, policies and processes. Looking for an overall subject matter expert in the areas of US export compliance. Please contact apply@tieronesearch.com or call 519.258.1844 ex. 103 to apply or for more information.

How Your Skills Will be Classified by China's New Foreign Work Permit

Over the past year, information about China’s new work permit has slowly been revealed. The new Foreign Work Permit (FWP), is the product of combining China's “Alien Employment Permit” and “Foreign Expert Certificate”. The new permit expects to resolve issues such as the uncertainty of which permit to apply to, a slow application process, and inconsistencies across regions (since it will now be federally managed).

With this new permit, China also expects to more firmly control the types of workers coming to China, by encouraging workers with high-demand skills in preferred industries, and by limiting the number of lower skilled workers. A point system has been developed to determine which category you fall into.

The permit has been operating at the pilot stage in select China cities since October of 2016. The permit will be in full effect across the nation starting April 1, 2017. Up until recently the actual point system that will be used to classify foreign workers remained undisclosed. This month, more details about how foreign workers will be graded and categorized have been released.

The Classification System

The Foreign Work Permit is a three-tiered classification system. Below are the three levels a foreign worker can be classified into and the criteria for each:

Class A – High-end Talent
* Talents who are in the “high level, competitive, advanced and short supply”
* Or a professional with an international achievement or award
* Or innovative and entrepreneurial talent
* Or personal comprehensive quality greater than or equal to 85 points.

Class B – Professionals
* Bachelor’s degree or higher and two years of full-time related work experience
* Or a Master’s degree or above from a Chinese University & outstanding merit
* Or a Master’s degree or above with any world top 100 universities
* Or personal comprehensive quality between 61-84 points.

Class C – Ordinary Workers
* Foreigner or intern who came to China based on government agreement
* Or a foreign maid who will come and serve a Class A candidate
* Or foreigners who engage in special work that is short and temporary
* Or a seasonal job on the border of China that is approved by Chinese gov't.

The point system below is what is used to classify a foreign worker into Class A, B or C:

What the New System Means

This point system gives plenty of insight into the ideal qualities that are prioritized by the Chinese government when it comes to the foreign workforce. One of the most interesting factors taken into consideration is age. Preference is given to workers who are not too young but also not too seasoned, with the most points being awarded to those aged 26-45. According to the 2016 Nationality Report from Expat Insider, the average age of American Expats in China is 50.2 years.

While it may seem alarming at first, this point system still allows for some wiggle room. For instance, even if a worker faces a disadvantage in the age category, he or she would most likely gain higher points in the related work experience category and the salary category - thus somewhat balancing out.

Another interesting factor of the point system (and a little less controversial) is the influence on where foreign workers are working. Extra points are given to those who will be working in less populated areas of China (Western China, Southeast China, Middle area China) where there would be a lower concentration of skills. This means it might be difficult for professionals in less favored industries (anything outside of the technical/technology sectors) to go to more developed areas such as Beijing or Shanghai.

In addition to the new classification/point system, one last interesting note is that the Foreign Work Permit will contain a "lifetime code" for the storage of personal information about each applicant. This will create a permanent record of the foreign worker's professional history - potentially including a past problem with an employer or leaving employment early. Not much is yet known about this code, or how much influence it will hold over a person's eligibility to work in China, however it is clear that trust is of high importance with these new permits.

Those currently working in China do not need to apply for the new permit until their current one expires. While this new system will be an inconvenience or a stress for some, it seems that it will not be all-together impossible to work with - maybe just work on your Mandarin fluency!

Sources and Further Reading

New China Work Permit - Secrets Revealed

Obtaining China's New Unified Foreign Work Permit

China Business Review - China Implements New Unified Work Permit Pilot Scheme

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