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Latest Update: Friday31/7/2009July, 2009, 10:17 PM Doha Time Foreign executives head east for jobs in China By Kirby Chien/Beijing He calls himself a Silicon Valley refugee who has worked for giants IBM and Siemens as well as software startups. Now Ronald Raffensperger, a marketing director at fast-growing Huawei Technologies, numbers among the increasing numbers of foreign expatriates China is counting on to steer its push overseas. China wants state and private companies to expand globally and skilled expatriates like Raffensperger are increasingly finding key roles in that campaign. "Chinese high-tech companies are just beginning to understand the need for marketing, brand-building and globalisation," said Raffensperger, who has worked at Huawei, the world's No 3 wireless telecoms gear maker, for two years after 30 years in Silicon Valley. "I bring that global experience to Huawei," he said. That expertise is becoming more valuable as foreign direct investment into China fell 17.9% in the first half and the country's acquisitions overseas face stiff political headwinds as spotlighted by Chinalco's failed tie-up with Rio Tinto. China's dynamism has long attracted overseas ethnic Chinese executives but rising unemployment in developed countries is drawing non-Chinese foreigners into the country's industries, from automobiles to financial services. "Foreign expat executives have fewer options today," said Michael Norman, a vice-president for Sibson Consulting, a human resources firm based in North America. "But for those with unique skills or knowledge there are growing opportunities working for Chinese companies," he said. China's economy grew a stronger-than-expected 7.9% in the second quarter, one reason Sibson - which is looking for local partners - sees high demand from Chinese firms for executives with specific technical or marketing skills. China International Intellectech (Shanghai) Corporation, an executive search and consultancy, said that last year, it recommended over 1,000 foreign executives -mostly ethnic Chinese - for positions in multinationals doing business in the mainland. So far this year, CIIC has recommended about the same number of expatriate executives to clients. The list of Chinese companies taking advantage of recruiting foreign executives is growing as they expand globally. The Haier group, China's largest appliance maker - including Qingdao Haier and Haier Electronics - bought a 20% stake in New Zealand's Fisher & Paykel Appliances in May, just months after hiring American Philip Carmichael as its Asia Pacific chief. Tencent Holdings hired US game producer Steve Gray as research and development consultant to develop and distribute Take-Two Interactive Software's popular NBA 2K basketball video game in China. Private firms, especially those in the fast-paced electronics industry, have been the most aggressive in recruiting foreign talent, but state-owned giants such as Aviation Industry Corporation of China (AVIC) are also beginning to appreciate the benefits. "The global financial crisis comes just as we are opening to the world, offering a great opportunity to attract international expertise," said AVIC chairman Zhang Hongbiao, whose company aims to one day challenge the global dominance of Boeing and Airbus. AVIC earlier this year announced plans to recruit 13 executives from around the world in key areas such as research, asset management, business development and marketing. The aviation giant, like many Chinese firms, has the ambition - and the backing of Beijing - to be a global champion, but when it comes to execution, the lack of international experience is a glaring hole in many domestic executives' resumes. Lenovo Group, China's top personal computer maker, appointed a former Dell executive, William Amelio, as its chief executive to help integrate IBM's PC business after buying the unit in 2005 for $1.25bn. "We decided to bring in a foreigner to learn and study from," said Liu Chuanzhi, the company's founder and chairman. Liu said putting current chief executive Yang Yuanqing - the heir apparent who eventually took over from Amelio earlier this year - in as CEO at the time would have been disastrous. "He would almost certainly have failed," said Liu. But going east is not without its problems. China's highly efficient manufacturing base seems to be a natural fit for executives with specialised skills honed in global markets, but the cultural gulf can be formidable. Recruitment companies and firms such as Sibson reckon the tenure for the majority of foreign executives at Chinese firms is less than a year, including ethnic Chinese expats. "As an American, I first came here and said, 'Where are my people? What is my budget? Give me a general direction and I'll go for it,'" said Huawei's Raffensperger, a US citizen. It doesn't work that way. You have to spend a lot of time listening, asking questions and understanding how decisions are made," he said. - Reuters
