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China Internet Executives Get a Seat at the Table in Beijing (THE WSJ CHINA REAL TIME REPORT BLOG)



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China Internet Executives Get a Seat at the Table in Beijing (THE WSJ CHINA REAL TIME REPORT BLOG)


March 4, 2013

http://blogs.wsj.com/chinarealtime/2013/03/04/china-internet-executives-get-a-seat-at-the-table-in-beijing/?mod=WSJBlog


Between questions of censorship, laws that require complicated listings in U.S. markets, and fierce and often public confrontations between companies, China’s Internet industry has always had an uncomfortable relationship with the government.
So it’s no small thing that this year, for the first time, the government took special steps to ensure more representatives from the industry could join China’s rubber-stamp parliament, the National People’s Congress, and its advisory body, the Chinese People’s Political Consultative Conference.
According to two people who were part of the consultation process to choose delegates, the change primarily reflects the government’s recognition that leaders of the relatively new industry can be counted among China’s most important business leaders. In August, the United Front Work Department, the branch of the party in charge of bringing in useful people who are not party members to cooperate with the party, held a meeting attended by representatives from about 20 of China’s most important Internet companies, according to a person who attended. At the meeting, the representatives were asked about issues facing the industry, what leaders they thought should be nominated and also what other people should be consulted, according to the person.
Six months later, the result has been an unprecedented number of Internet pioneers in both the NPC and CPPCC. In the relatively more important NPC is Tencent Holdings Ltd. Chief Executive Pony Ma and entrepreneur Lei Jun, while Baidu Inc. BIDU -2.48% Chief Executive Robin Li, Shanda Games Ltd. GAME -0.66% Chief Executive Chen Tianqiao, and Sina Corp. SINA -2.37% board member Zhang Yichen are among the others who are members of the CPPCC.
Although the two bodies have little real power – celebrities such as Jackie Chan and Yao Ming also grace this year’s congresses as delegates – the person who attended the meeting said the new appointees would help the industry raise more key issues to officials at the highest levels of government.
“It’s a specialty of China, if you don’t have an official title, it will be difficult to make your voice heard by those above you,” the person said. For example, Mr. Lei issued recommendations on Monday to streamline the process for starting a company in China, an issue that entrepreneurs have long hoped the government would give more attention.
Though delegates can only recommend policies and often have minimal immediate impact on policy, over time the perspectives can guide policy changes, analysts say.
Ahead of the meeting, Baidu’s Mr. Li made calls to lift restrictions on U.S.-listed companies making acquisitions within China, local media said. Baidu is a U.S.-listed company and has been linked to a possible investment in a number of smaller Chinese Internet companies.
And just as the government has been taking Internet company leaders more seriously, so too have Internet companies been focusing more time on their own government relations, according to industry insiders. It’s an indication of how important good communication channels are in an unpredictably regulated industry.
Though analysts point out that rubbing shoulders with China’s political leaders is unlikely to help soften the government’s stance on censorship, for major companies like Baidu and Tencent, it nonetheless can help with the government’s regulation of other facets of the Internet industry.
For instance, in recent years when disputes have broken out between companies, in particular two conflicts between Qihoo 360 Technology Co. and first Tencent and then Baidu, it’s the government that often has the last word.
Also looming are new laws the government is trying to pass to increase oversight of smartphone software, including operating systems and applications. Although smartphone makers are the most worried about the proposed law, which would require new testing and registration processes each time software on a smartphone is updated, the law also refers to standards that could force companies to help the government identify users and track their application use.
That would be bad news for both Tencent and Baidu as the companies are striving to increase their presence in the smartphone market and also potentially expand abroad. Although it’s unlikely to have a major impact, a bit of quiet opposition from China’s newly inaugurated political leaders of the Internet industry might lead to some tweaks in policies like the smartphone law in the future.
– Paul Mozur. Follow him on Twitter @paulmozur


China’s Youth Tell Employers: I Quit (THE WSJ CHINA REAL TIME REPORT BLOG)


March 4, 2013

http://blogs.wsj.com/chinarealtime/2013/03/04/chinas-youth-to-employers-i-quit/?mod=WSJBlog


For increasing numbers of young Chinese professionals, the first day back at work after the Lunar New Year holiday is the day they quit.
The number of new online job applicants and resumes on Zhaopin.com, a leading recruitment website, increased 36% year-on-year in the first week after the lunar New Year holiday, the company revealed recently. New job ads doubled.
The period after the Lunar New Year holiday, also known as Spring Festival, often sees Chinese workers on the move. With their annual bonus in their pocket, and the trip home to see family behind them, many young workers are looking for a change. But this year, the number looking for new opportunities was especially high.
“We have seen increasing job-hopping after Spring Festival for the past few years, but I was still taken aback by this year’s huge increase,” said Benjamin Chen, public relations director for Zhaopin.
Nasdaq-listed recruitment site 51job notes a similar trend. The number of job opportunities posted in the week after New Year reached 2.26 million, up 21.5% year-on-year, the company said in a recent report. The increase was caused partly by an increase in the number of companies advertising jobs online, and partly by workers quitting their jobs at the end of the holiday, according to the report.
A survey of service sector firms by the National Bureau of Statistics likewise shows many looking to hire new workers.
Daniel Zhu, a 27-year-old Beijing native working in his hometown for a state-owned electronics firm, is one of the young workers looking for a better deal. “Salary is a big concern for me and I need a job that pays more,” said Mr. Zhu, who makes about 4,000 yuan a month ($642). “Plus my department can’t provide good career development for me.”
“Some of my friends are also thinking about changing jobs now because they work for private companies that demand too much overtime work,” Mr. Zhu said.
An online survey by Zhaopin.com, which received more than 8,000 responses nation-wide, provided further details on why China’s young white-collar workers are so keen to move on.
Low salaries were the biggest concern for 62% of the respondents. Among respondents aged 23 to 25, 88% said they were dissatisfied with their current wage.
Overtime and a wide mismatch between low salaries and high housing costs were also grumbles. Two-thirds of respondents said they had to work at home after office hours, and 10% said they do roughly 30 hours of overtime a week. A full 95% of respondents said they felt they were under heavy pressure because of mortgages or rent.
Health and office pressure were also mentioned as reasons for job-hopping, with 92% of employees saying their health had suffered from overwork. More than half of respondents said they had been chewed out by their boss in the previous week, and 62% of that group said they considered changing jobs because of the criticism.
The survey also found that what is seen as a “good job” has changed. For the generation born in the 1970s, high salary and status is the key. For the generation born after 1980, work-life balance and respect in the office are also important.
Zhao Bin, a 28-year-old woman who earns 6,000 yuan a month working at a public relations company in Shanghai, said she waited until the Lunar New Year change her job. “My salary is OK for me. What made me want to change job is that PR work was just too stressful. I worked like crazy. So I want to find something comfortable, like being an English teacher in training schools.”
“Work life balance is a relatively new thing in China” said Max Price, a partner at Antal China, an international recruitment firm. “Salaries have increased over the last 5 years steadily and as salary increases slow down, the other attraction factors become more relevant.”
– Lilian Lin




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