Summary of Key Points
This article explains a paradox: although the number of newly established foreign-funded enterprises in the first five months of this year increased by 5% year-on-year (with over 25,000 new additions), ordinary people feel that job opportunities with foreign companies are becoming fewer. The reason lies in a disconnect between statistical figures and real experiences—many of the newly established firms are merely "shell companies" or result from structural adjustments, and the actual amount of capital invested is declining. Additionally, the entry barriers for high-tech foreign-funded positions, which are growing rapidly, are too high. At the same time, traditional foreign investors are withdrawing, taking away a large number of mid- to low-level jobs, ultimately reducing the employment-generating capacity of foreign investment.
Detailed Analysis
1. The "inflated" number of newly established foreign-funded enterprises: Many are just rebranded entities without actual job creation
The so-called "newly established foreign-funded enterprises" in statistics do not all represent genuine new businesses looking to operate and hire employees. For example:
- A multinational company may set up a procurement center in Shanghai (simply registering its existing procurement functions);
- A foreign private equity firm may register an investment entity in Beijing (for compliance purposes without an actual operational team);
- The sales division of a headquarters may be spun off into a separate subsidiary (with the same people doing the same tasks as before).
These cases are all counted as "newly established enterprises" in statistics, but there is no additional investment or job creation. It's like giving old businesses a new name; the numbers look good, but they contribute nothing to employment.
2. A decrease in real capital investment: Fewer major projects mean fewer jobs
A key indicator of the "value" of foreign investment is the actual amount of capital used. In the first five months of this year, this figure decreased by 10.6% year-on-year, and it has been declining for several years.
In the past, when foreign investors came to China, they built large factories and opened major retail stores, creating hundreds of jobs per project (for assembly line workers, sales staff, administrators, etc.). Nowadays, new foreign investments are mostly "lightweight" entities such as trading companies, holding platforms, or regional coordination centers, which often operate solely online. These companies are easy to set up and shut down quickly, requiring very few employees, and they cannot make up for the job losses caused by traditional large-scale projects.
3. Rapid growth of high-tech foreign investment, but it's out of reach for most people
The article mentions that "high-tech industries" have seen a 20.3% increase in foreign investment, and research and development services have grown by 108.4%. However, these positions are beyond the reach of most ordinary people:
- High-tech foreign firms hire engineers with master's degrees, process experts with ten years of experience, and architects who understand automation;
- Traditional foreign investors still hire assembly line workers, front desk staff, sales representatives, and administrative assistants—these are the types of jobs that most people can do.
High-tech positions are only available to a few individuals with specialized skills, while most people don't even have the opportunity to apply for them.
4. Traditional foreign investors are withdrawing, taking away many mid- to low-level jobs
Statistics only count newly established companies, not those that have left China. In recent years, many traditional foreign investors (such as fast-moving consumer goods factories and retail stores) have been exiting the country, taking away thousands of mid- to low-level jobs that ordinary people rely on for their livelihoods.
The new 20,000-plus enterprises are either "shell companies" or "lightweight" entities, which cannot fill the gap left by the departure of traditional foreign investors. The net result is fewer job opportunities, making it harder for people to find work.
5. What should ordinary people do?
The article offers practical advice:
- Don't rely on an overall improvement in the situation for foreign investment (you can't control macro trends);
- Research which foreign firms are increasing their investments (e.g., in high-tech fields) and understand what skills they are looking for;
- Identify your gaps and quickly improve your skills (e.g., learn programming or obtain relevant certifications).
Statistics may show positive overall trends, but jobs are a personal matter. Instead of complaining about fewer opportunities, focus on making yourself eligible for those available positions.
Final Thoughts
This article does not make grand statements; it reflects the real feelings of ordinary people: the statistics look good, but the number of job opportunities has not increased. The core issue is that the "quality" of foreign investment has changed—from heavy-asset, high-job-creating investments to light-asset, high-barrier ones. To adapt to this change, ordinary people need to proactively upgrade their skills to keep up with the times.