Young people leaving north-east China prompts fall in growth
Economic growth in north-east China slowed sharply in the first half of 2015. The north-east is regarded as the last stronghold of the former planned economy. There are growing concerns over the economic revival of the region as many are leaving for better opportunities elsewhere.
Statistics from the Sixth National Population Census show that on average, more than 2 million people have emigrated from northeast China every year. Here in Shenyang, we visited the country’s largest IT service provider to see how it is coping with the lack of young talent.
"Because young talents will go where there are opportunities, the same scenario applies to capital flow... Our company has always thrived by attracting talents and encouraged young employees to be a part of the company's future. People will stay when they have a sense of belonging," said Liu Jiren, chairman of Neusoft, Shenyang, Liaoning Province.
In general, population growth is often a key indicator of the state of the economy, whereas declining population often signals weak economic conditions. Fresh graduate Haoyan speaks his mind on the economic slowdown.
"I think the reason why many people my age chose to leave the northeast after graduation is that they tend to believe the jobs elsewhere often offer higher salary and faster promotion, but in my opinion, opportunities can be found anywhere if one is willing to seize them," said Qi Haoyan, undergraduate in Shenyang, Liaoning Province.
The legacy of the planned economy remains strong in the three northeastern provinces despite the spread of private enterprise in recent years. Expert thinks this could have pushed people to leave the region seeking employment elsewhere.
"The number of foreign companies and joint-ventures in the region account for only a small portion of the economy. Large SOEs don't seem to learn from these companies about modern human resource management and performance appraisal methods, which are crucial to retaining talent," said Zhang Sining, senior research fellow, Liaoning Academy of Social Sciences.
While the correlation between population outflow and regional economic growth is still a debate, one thing is clear: the change in the growth model and industrial restructuring will help to put the Northeast back to a path of steady growth.
