International MBAs in China and Hong Kong

China and Hong Kong are growing considerably in both popularity as an MBA destination, and in terms of employer demand for MBA graduates.

In fact, the QS Global 200 Business Schools Report 2012 shows no fewer than eight business schools from the region that are valued by international employers for producing highly employable MBA graduates.

MBA demand in China increasing

In the wake of the Western financial crises, many large Chinese companies consider local MBAs with international experience as the best of both worlds, but this is not to say that the opportunities emerging in China are off limits to international talent.

To many in China, the image of the US and the opportunities available there has taken a serious beating as a result of the US-led sub-prime crisis and the more recent downgrade of the country’s credit rating. But it is Europe that comes out worse to a large number of Chinese, who falsely see the continent as almost bust thanks to the ongoing sovereign debt crisis.

But it is not just the Chinese that have low growth expectations of the West and, partly because growth is forecasted to remain low, multinational corporations (MNCs) themselves are also beginning to increase their operations in China: “As the Western crisis deepens, MNCs are increasingly turning their attention to China as a source of growth,” says professor Lydia Price, academic director of the MBA program at the China Europe International Business School (CEIBS).

MNCs coming to China to expand their businesses, adds Price, means that the blanket demand for MBA holders in China will rise in the near future. MNCs are also more likely to require internationally-educated MBA holders that perhaps reflect the ethos or home country of the company, and will be less likely to be on the lookout for Chinese-only MBA holders. “[Foreign investment into China] is still strong, which brings a need for talent,” Price adds.

Hong Kong MBA demand from internationals rising

In Hong Kong, demand for MBA programs seems particularly popular among US and European applicants. Professor Steven DeKrey, senior associate dean and MBA program director at HKUST Business School, says that the past five years have seen huge rises in MBA program applications. “Over the five years between 2005 and 2010, the number of students from North America rose by 114%,” he says. In the same period, the number of Europeans studying at the school rose by 135%.

The financial crises in the West led to a significant shift of global wealth eastwards, DeKrey notes, and that talent and business is likely to follow that wealth. “China is the world’s second largest economy and 60% of Fortune 500 companies have operations in China. You can see that there are huge opportunities here,” he adds.

The debate is still ongoing, however, over which MBA holders have the best opportunities in China. Indeed there is a rising number of international companies growing their operations in China - as well as an increasing number of MBA students obtaining their degree in the country - but the number of Chinese with similar ambitions, access to high quality MBA programs and, crucially, native language skills, is growing too.

For international students hoping to work in China, perhaps the simplest way of overcoming the cultural gap, and of acquiring language skills is to earn an MBA in China. “We put great emphasis at CEIBS on teaching Mandarin to our international students, and also training the entire student body in cultural integration, cross cultural communication and China knowledge,” adds Price.

International expansion means increasing demand

However, the growth in China is a two-headed dragon. Not only are international companies moving in, and increasing demand for MBA holders within China’s borders but Chinese companies too are getting wealthier, and are aiming at international expansion.

These companies need highly-educated businesspeople that have the right to live and work in the company’s target country, and perhaps more importantly, they will be looking for MBA holders who have a knowledge of international management tactics.