China’s Brain Drain Threatens Its Future

livemint.com:

Is China reopening to the world or turning inward again? Many would argue the latter, but in one important way, the country is still going global: Residents appear to be leaving at a faster clip than they have in years, including a significant number of the wealthy and well-educated the nation needs to keep modernizing and investing. Rising numbers of footloose Chinese in 2023 shouldn’t be a surprise. Getting out of the country is easier again now that pandemic controls have been dropped.

But the trend of rising emigration actually predates the pandemic—and coincides with the emergence of several other important economic trends since 2017, including higher youth unemployment, the state’s renewed grip on the financial sector and an apparently structural downtrend in Chinese growth. Rebounding emigration is also striking in the context of a declining overall birthrate, and suggests that Beijing must do far more to convince talent, both domestic and foreign, that China is a good place to put down roots if it wants to avoid a steeper growth slowdown in the years ahead. China, unlike the U.S., has always been a nation of emigrants—its diaspora is among the world’s largest and most influential.

But the scope of emigration has been highly variable over time. For most of the early 2000s around half a million residents, on net, were leaving every year according to United Nations data. But after 2008 that number fell sharply—probably in part due to China’s strong recovery from the global financial crisis while the U.S.