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A city of more than 26 million people, it comes as no surprise that Shanghai is something of a diverse business environment.
As the country shifts its focus from heavy industries such as manufacturing to the service sector, growth in China is expected to continue, albeit at more moderate levels than the past two decades.
Shanghai has largely spearheaded China’s impact on global economics, with a formidable financial sector that includes the Shanghai Stock Exchange. Service industries such as retail and real estate also play an important role in the city’s economy.
The importance of trade and manufacturing in Shanghai should not be underestimated, however. The city’s bustling harbour is still one of the largest cargo ports in the world, while heavy industries such as steelmaking, shipbuilding and car manufacturing play an integral role in the city’s economy.
In line with national developments, significant investment has gone into Shanghai’s high-tech industries such as electronics and biomedicine.
Job market in Shanghai
Shanghai has a reputation for being one of the best places for expats to find a job in China. At the same time, competition for positions has increased dramatically. Companies are increasingly looking to workers from China and elsewhere in Asia to fill positions at lower wages than Western expats.
One result of this is that salaries and relocation packages are perhaps not as lucrative as they used to be. In this environment, contract negotiation becomes especially important for expatriates, while knowledge of Mandarin and local experience are good ways to get ahead of the competition.
More expats are taking lower-paying jobs in Shanghai, trading immediate income for the longer-term benefits of experience. Still, depending on their jobs, expatriates have reason to expect a higher salary than in their home countries.
Finding a job in Shanghai
Many foreigners working in Shanghai move their via an intra-company transfer. These employees will be working for the same company as in their home country, which can help with overcoming culture shock and also having connections already in the city.
Expats who are actively looking for employment in Shanghai can start their job search online, where they are bound to find a wealth of resources. Online job portals and platforms such as Glassdoor and LinkedIn are great for networking and finding available jobs. Job seekers who go through a recruitment agency will also benefit and find listings that suit their skills and areas of expertise.
When looking for employment in China, be sure to research the necessary processes for getting a work permit.
Work culture in Shanghai
While there are business opportunities for expats wanting to move to Shanghai, working in the city is not without its challenges, and there are cultural differences to navigate.
The Chinese business community is fairly insular and business people prefer to work with people they know, meaning that a lot of effort will have to go into building relationships. Business meetings and negotiations are also often long, formal and drawn-out processes.
China only has seven national holidays each year and, while there are vacation days, the working hours and workload tend to be more demanding than many expats are used to. The average workweek in Shanghai is frequently between 40 and 60 hours each week.