China To Be Key Place For Business Expansion

expat network

China To Be Key Place For Business Expansion

China is set to become the key destination for international business expansion in the next five years, according to research.

The research by AXA, conducted among 250 firms in eight countries and 372 globally-mobile workers reveals that while western economies dominate the list of countries that employers say they most commonly send staff to work in today, the balance of power between nations is changing.

Today, the USA and China, followed by Germany, the UK and France are the most popular destinations for firms to send staff to work on long-term contracts.

However, looking ahead to the next five years, China is set to become the key destination for new international expansion with the USA at number two, and France, Russia and Japan in joint third place and Germany in fourth place. The UK is in joint seventh place for new international expansion with South Korea.

More than a third of HR and global mobility managers questioned said they are looking to recruit more local teams in-country as well.

Tom Wilkinson, CEO of AXA’s global healthcare team said: “Internationally-mobile workers are critical for organisations looking to trade globally, and in today’s economy that means many businesses.

“However, the countries that organisations prioritise as a focus for investment and for sending people to work in naturally shifts to take account of changing global economic and political opportunities and China is a big focus for the businesses we surveyed.

“One thing remains constant and that is the importance of human talent in helping firms establish and build operations globally. Looking after their staff and ensuring that they get appropriate support and benefits packages to allow them to work internationally is key – yet our study reveals that some employers need to work harder on this is if they are to deliver for their staff.”

The survey revealed that one-in-ten staff on international assignment say they receive no help at all from their employer, rising to almost a quarter of those employed by UK firms and 32% of those employed by organisations based in Switzerland.

Almost half of staff on international assignments said they get help with visa and immigration requirements, more than a third receive help in finding a new home and 35% get contractual/ HR support from their company.

Just 27% of staff on international assignment said they received language or cultural training before being sent to work internationally and only around a fifth said their employer provided a global mobility representative to help them.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.