From July 1, work units in Beijing, including universities, will stop subsidizing rents of senior employees.

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They face rows of programmers, recent graduates from near-by Beijing and Tsinghua technical universities, plus an executive team who are not really incentivized to work further, since they split the purchase money with local investors.

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About 100 of the 600 graduates annually go to study abroad in countries including Australia, Singapore, Japan, France, Britain and the United States, and the rest usually go to top universities, often in Beijing.

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Beijing has also been sponsoring programs at Chinese universities to encourage young Africans to come to the country to study.

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Foreign firms should establish long-term interaction with leading Chinese faculty at Chinese universities, from top-rated Beijing University to Tsinghua to Fudan (in Shanghai) to other colleges in Tianjin, Dalian, Nanjing, Wuhan, Xiamen and Guangdong.

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Since 2006 the leading PhD-producers have been Qinghua University and Beijing University, surpassing all U.S. universities.

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