China Expat Exodus as School Term Completion Brings End of Contracts

The number of senior level expatriates appears to be heading for a drop in numbers when the Chinese school terms ends, sending an estimated 30 percent of expatriate families back to their home country.

According to an informal survey of international families, nearly one-third will be leaving China with their children following the completion of the year's final term in China's international schools.

With the school term having either just ended or about to end for thousands of expatriate children in China's expensive international schools, where education fees for just one child can run into tens of thousands of dollars per year, a higher than normal number of families appear to be permanently relocating back to their home countries.

While some of this will be normal end-of-contract periods for their parents, many appear to be leaving after relatively short periods. Senior level expatriate packages usually provide for children's education, as well as housing allowance, car and driver, and adjustments for hardship postings due to cultural concerns. This means an expatriate manager with three children and his wife to support can easily notch up a complete package of close to a million dollars for the family if all move to the PRC. In the wake of a global downturn, some companies are retrenching expatriate staff and the end of the annual school term provides them with a suitable date to kick in repatriation.

This article was written for China-Briefing.com which is published by the China business guide publisher, Asia Briefing. Asia Briefing also publishes the India business news website, India-Briefing.com.

The publishing house was established by Chris Devonshire-Ellis, who also established the China tax and accounting practice, Dezan Shira & Associates.