It fits the profile released by the Ministry of Education. An estimate made by the ministry indicates over 50,000 students returned to China in 2008 – double the number of 25,000 four years previous. China began to send students abroad again in 1978 and has registered 300,000 returnees so far, but the number that made their way home in 2008 alone accounts for nearly one-seventh of that total.

We can only guess at the numbers for 2009. The 11th Guangzhou Technology Fair for Overseas Chinese Students was held at the end of 2008, attracting 1,800 Chinese students from 30 countries. The number of participants was up by 10 percent or so compared to the 2007 one that presaged the 2008 stampede.

Participants polled confessed that the staff cuts in foreign institutions turned them back to China. Their original expectations for high salaries haven't survived the experience.

A British-based PhD and macromolecular material specialist introduces herself to a recruiter from a China Petrochemical Corporation affiliate.

"Students used to prefer staying abroad because of the good life offered by foreign companies, but in these uncertain times no one can expect stability. So more and more Chinese students are coming home," comments Michael Zhang, who himself returned from England in 2005 and currently enjoys the fruits of his timely decision as an employee of an American multinational semiconductor corporation.

Mutual Adaptation

"Although Chinese enterprises and even state-owned companies have shown a tremendous appetite for overseas talent, multinationals remain the first choice for returnees," Larry shares his analysis based on years of experience with Wang&Li Asia Resources.

"The multinational can better appreciate and understand how to optimize the returnee's background with respect to their role in the enterprise," Larry clarified. By contrast, the traditional managing and operating model of most state-owned enterprises disadvantages both the manager and the returnee by imposing circumstances where it is difficult for them to adapt to each other in the short term.

"Although China's professional standards and business practices continue to internationalize, the difference between mindsets presents a real challenge for those with limited or no working experience on the mainland," says Larry. "It will take time to change the organizational culture that dominates most Chinese institutions and enterprises," he adds.

HR professionals confirm the nature of the challenge. An assessment of Chinese talent conducted by Beijing Dongfang Huibo Human Resources Consulting Service Co., Ltd. shows that nearly half of Chinese enterprises polled feel satisfied with their newly acquired returnees, and over 40 percent of state-owned enterprises or state holding companies report a relatively good impression of their home-comers. What's telling is that employers in the fields of real estate, architecture, consulting, law, and accounting – in other words, those that demand high familiarity with the domestic environment – have a low opinion of the value of returnees.