Second-Tier Talent Race

Four of China’s first-tier cities – Beijing, Shanghai, Guangzhou and Shenzhen – have been top destinations for both highly-educated graduates and manual workers due to abundant job opportunities and competitive pay. In recent years, however, second-tier cities are squaring off to draw talent by issuing preferential policies, including housing subsidies, registration of hukou (residency permits, China’s internal visa) and the provision of start-up funds. The race to lure talent among cities reflects the fierce competition and cities which have joined the talent race are those ranked higher on the GDP growth list. At a time when GDP growth is increasingly fueled by innovation rather than by financial investment, high-end talent will play a crucial role for a city’s innovation-driven development.