"Different from the first two, when many Chinese professionals went overseas, the upcoming exodus peak is characterized by lots of Chinese professionals transferring from domestic enterprises to foreign-funded ones in the country," Gao Tongsheng said.

The first two exodus peaks of Chinese professionals took place after 1978, when the country kicked off far-reaching reforms, and in 1992, when former Chinese leader Deng Xiaoping made landmark speeches about a move towards a market-orientated economy. These changes led to thousands of well-educated Chinese going abroad to study.

As far as Gao is concerned, the third peak may be China's biggest challenge yet.

"Over 90 percent of the high-level employees at foreign-funded enterprises in China went abroad 10 years ago," he said.

"But 10 years later, the percentage can be applied to high-level Chinese employers at those companies.

"It means domestic enterprises are fighting at close quarters with their foreign counterparts."

Official statistics show that by the end of June, more than half of the world's 500 most powerful enterprises had entered China and there were more than 20,000 foreign-funded projects.

Some major foreign companies have signaled the start of campaigns to headhunt Chinese professionals.

For example, Microsoft not only vowed publicly to attract 100 of the best Chinese scientists but changed its Beijing-based "Microsoft Research China" into "Microsoft Research Asia."

Gao is pessimistic about the future if domestic enterprises do not improve their human resource policies.

A survey carried out among new college graduates in Shenyang, the capital of Northeast China's Liaoning Province, shows worrying signs.

The result indicates that less than 14 percent of the students want to work for State-owned enterprises or institutions. Almost 35 percent have foreign-funded enterprises at the top of their lists.

As a deputy to the National People's Congress, Gao has submitted a motion urging prompt governmental action and involvement in the human resource policies of domestic enterprises.

"Besides attractive-enough salaries, domestic enterprises should see to providing better opportunities in training and promotion, which are based mainly on work performance," he said.

"If the nation cannot demand it, it can at least create related standards to promote such changes."

(China Daily September 25, 2002)