Are there any difficulties in moving people from Chinas coastal cities into the hinterland?
A. “For the most part, companies need to recruit their managers locally. Lack of internal mobility is one of the issues that many multinationals face in China. There are multiple factors that are creating this problem. One of the factors is that China’s society and infrastructure, social security and all of the social supporting structures are not accommodating for people moving around from city to city. For example, the social security or pension payments that you make in one city are not transferable to another city. Social security is managed by the municipality or by the provinces. Another factor is that the local job market is very good, so people have minimal motivation to move. They can easily get another job across the street. I am often asked by clients “Why can’t you move people from Shanghai to Guangzhou? They are both tier one cities. Between these two cities there are cultural differences. It is relatively easier to move people to Beijing or Shanghai.” Q. Do you see any ch
