Oktoberfest China - AHKs

Business Focus
Sino - German Business
October - November 2008 | 12
The German Chamber of Commerce in China
Just How International is Shanghai?
Shanghai has been home to residents from a wide variety of cultures
and ethnic backgrounds over the last 170 years. In fact, looking at the
cityscape, you could say many areas were built by expatriates. Over
the years, relatively accurate records have been kept on the numbers
and nationalities that have called Shanghai ‘home’ - right down to the
last Albanian. Yet, at no point in the last 100 years has this number
been as difficult to pinpoint as today.
If one thing is certain, it’s that Germans have played an important part
within China’s expatriate community, particularly in Shanghai. In fact,
it’s widely acknowledged that Germans and Americans outnumber all
non-Asian expats. This is no surprise, when you consider that Germany
is China’s largest economic and trade partner in Europe, or that many of
the largest German investors in Asia are based in Shanghai.
Immigration Over the Years
1865 - Out of total 2,235 international residents, 175 were German
1915 - The foreign settlement and concession area housed 20,924 foreigners
– predominantly British merchants, missionaries and physicians.
The number of Germans had increased to 1,425.
1925 - Census revealed there were nearly 30,000 foreign residents, consisting
3.5% of the population. While the Japanese made up the largest
group, the German population was rapidly increasing.
1930 - The German expatriate community outnumbered the French, at
1,430 residents throughout the International Settlement, external roads
and French Concession.
1934 - Shanghai was the world’s 6th largest city, with a foreign population
of 70,000. Most were Japanese or Russian, but Germans still outnumbered
the French.
1942 - Shanghai’s pre-1949 foreign population peaked at 150,931.
Snapshot of a City’s Growth
In the early census days, a complete breakdown of the nationalities
was available. However, today the situation is no longer clear, with a
number of different authorities responsible for keeping records. These
include the Shanghai Municipal Labor Bureau, the Public Security
Bureau as well as the various foreign Consulates. While in the 1930s
foreigners required neither visas nor passports to enter Shanghai,
today’s complicated requirements span a wide range of visas and residence
permits.
Resident Status
The F visa also known as a business visa is the case which causes the
most confusion. Some ‘F’ visas holders visit China strictly to conduct
business for a short period of time. They stay in hotels and don’t stray
much beyond the Bund, Pudong and Yuyuan Gardens. Others remain
here a little longer, and extend their stay a few times until they count
essentially as residents, but how many of these cases are there? How
have recent visa changes affected this group? The answer is uncertain.
According to the Shanghai Municipal Statistics Bureau, by late 2006,
Shanghai’s total population (not including itinerant or migrant residents)
had grown to 18m. According to the Municipal Labor and
Security Bureau, legally registered international residents numbered
Fig. 1
Japan 30% 29,326
America 13% 15,877
South Korea 12% 17,020
Singapore 6% 6,336
Germany 5% 5,636
France 4% 5,437
Canada 4% 4,572
Australia 3% 3,927
Malaysia 3% 4,097
UK 3% 3,725
Other 17% 23,923
119,876, constituting around 0.7%
of the total population, and more
than 50% of China’s total international
population.
In mid 2006, the Shanghai Municipal
Labor and Social Security
Bureau announced there were
51,000 foreigners working in
Shanghai. (Fig.1)
As these statistics reveal, ‘Western’
expatriates constituted a mere 32%
of the international community in
Shanghai. Regional expats from Japan, Korea, Singapore and Malaysia
made up 52%. There were also a further 20,000 permit holders from
Hong Kong, Taiwan and Macau listed as permanent residents.
If you include those working in China without a work permit (usually
living here on an F visa), estimates of the total number vary greatly
and rise to as high as 600,000 but this is an impossible number to
validate. Since 2004, annual increases have been between 25-35%.
Apparently, the long-term goal of the Shanghai Municipal Government
is to establish an international community that constitutes 5% of the
city’s total population. The question, nervously being asked by expatriates
and other foreign residents, is will the gates be shut once that
goal is reached? Recently, a tightening of F visa regulations has been
one indicator.
Germany in Shanghai
1872 - C. Melchers & Co. enters Shanghai
1885 - German Consulate General built
1886 - First German business delegation in Shanghai
1914 - German School of Engineering built at the Tongji University
1929 - German Cultural Center established in Shanghai consisting of
the German Community Center, the Kaiser Wilhelm School and the new
German Protestant Church
1972 - Germany established official diplomatic ties with the People’s
Republic of China
1984 - German Business Association is founded with 13 members
1986 - Hamburg and Shanghai become sister cities
2000 - Trade volume between Shanghai and Germany totals USD3.6 bn
2001 - China attracted direct investment from 1,600 German companies,
650 of which had set up their joint ventures or representative offices in
Shanghai.
Second Generation Expats
The majority of Shanghai’s international population consist of the
employees of multinational corporations and their families. Over the
last 3 years, the number of expatriate children has risen by more than
30%, an increasing number of which were born in Shanghai and know
no other home than China.
As the number of children increases, so do the education resources
and schools that cater to them. The German School Shanghai was