China Salaries Increase 6 To 7 Percent In Past
Year
A salary survey of more than 43 professions in China
commissioned by Beijing Youth Daily and China Business
News showed that salaries in China had increased an average
of 6.7 to 7.3 percent over the past year.
The salary survey showed that the profession which had
the highest salary adjustment was management of China's
leading Internet portals. Some of these individual's salaries
made a great leap forward, making more than 800,000 yuan
(roughly US$100,000) annually, an amount previously unheard
of in Chinese companies. These companies have benefited
from revenues from SMS (short message services) and online
gaming, and the Nasdaq share price of the three leaders,
Sina, Sohu and Netease, have gone up several thousand
percent over the past year. The survey showed that the
average age of management was 35.
However, the companies also show the greatest salary
disparities, with some operational personnel making salaries
of US$300 a month, and not enjoying stock options.
Hi-tech has also attracted a large number of professionals
in China, especially in Beijing's Zhongguancun district
near Tsinghua University. The survey showed that for these
professionals, 74 percent of their income came from salary.
This indicates that the profession is stabilizing, and
that most are not counting on their companies' going public
for income. Salary adjustments for management are fast
and stable, and they have placed special emphasis on keeping
their personnel. So far, China does not have a domestic
stock exchange for small hi-tech companies to raise capital,
and most companies go public either in Hong Kong or the
US. Since 2000, the market for new companies going public
has cooled considerably worldwide, forcing Chinese companies
to focus on revenue generation.
Seven percent of companies in China had not raised their
salaries in the past year, while those that did, raised
their salaries an average of 6.7 to 7.3 percent. In Taiwan,
companies that adjusted their salaries raised it an average
of 3.2 - 4.1 percent, while businesses in Hong Kong, showed
the least in salary adjustment, with adjustments of 1.3
- 1.5 percent.
In Taiwan, the medical profession enjoys a high, stable
salary, but this is not the case in China. Doctors in
China generally made 30 percent less than those employed
in hi-tech. This is because Chinese companies currently
place emphasis on sales professionals, and pay less for
the medical profession.
The medical profession in China is still largely in state
hands, but the government wants to privatize large portions
of healthcare. However, privatization of healthcare is
not currently a high priority.
In Taiwan, while there is a government health plan, many
doctors also have their own private practices and income.
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