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Straits Times
03-05-2025
- Business
- Straits Times
China appliances maker Gree draws flak for labelling foreign graduates as potential spies
Chairwoman of Gree Electric Dong Mingzhu arrives for the opening session of the National People's Congress in Beijing on March 5. PHOTO: AFP – A prominent Chinese business leader and lawmaker has stirred controversy by saying that her company will not groom foreign-educated talent for fear of spies in their midst. The comments and ensuing uproar point to the mixed attitudes confronting some Chinese who have returned home after spending time abroad , amid rising geopolitical tensions and growing attention to national security. Ms Dong Mingzhu, the chairperson of appliance maker Gree Electric, told a meeting of shareholders on April 22 that the company would 'absolutely not use any overseas returnees' when cultivating talent. 'There are spies among overseas returnees, and I don't know who is and who isn't,' she added to laughter and applause. 'Without the ability to distinguish spies, I can only be conservative and choose to train our own talent from local universities,' she said in closed-door remarks that were captured on video and quickly went viral on social media. The sweeping statement by Ms Dong, an outspoken 70-year-old who has been a member of China's Parliament for more than two decades, is not representative of the approach that most companies in China are likely to take, analysts say. 'The majority of businesses and non-sensitive departments are unlikely to discriminate against overseas returnees,' labour economist Liu Erduo of Renmin University in Beijing told The Straits Times. But even so, these individuals known in China as haigui, who were once prized for their credentials, have seen their cachet fall amid mounting nationalism and sharpening geopolitical tensions , observers note . Some employers are now also said to be more hesitant about recruiting people who have studied abroad : a view echoed by 25-year-old Gwen, who declined to give her full name for fear of retaliation. After graduating from a top Australian university with a master's in business administration last October, she put in at least 200 job applications with Chinese state-owned companies but hardly heard back from any. 'I most likely got dropped at the resume selection stage because of my overseas master's degree,' she said. 'My sense is that the state-owned companies worry that the longer time you spend overseas, the more 'westernised' your thinking would be, and the harder it is for them to manage you.' The recent remarks by Ms Dong, some say, do not help the situation. 'It's tough enough for people like me who studied overseas to find good jobs,' said Cindy, 26, who has a masters in international economics from a US university. 'Ms Dong's comments just made it tougher.' She has also declined to give her full name for fear of any reprisal. Associate Professor Alfred Wu of the Lee Kuan Yew School of Public Policy notes that Ms Dong's remarks reflect a broader caution within China towards foreign countries – one that has been exacerbated by an ongoing national security drive. He cited how the Ministry of State Security, which for years maintained a minimal public presence, has been increasingly active on social media and is 'publishing quite extensively' closed espionage cases through a popular WeChat account set up in July 2023. 'This approach increases public awareness of national security and fosters greater caution in interactions with foreign individuals,' he added. The ministry has periodically warned Chinese studying abroad about foreign spies, putting out real-life examples as a cautionary tale. In a video uploaded to its WeChat channel in April 2025, for instance, the ministry outlined one case of an overseas returnee who was recruited by a foreign intelligence agency while studying abroad. Upon graduation, the student returned to China, got a job at a government-affiliated research institute at the foreign entity's instruction, and later passed along classified information and state secrets. He has since been convicted of espionage and sentenced to life in prison. Cases like this have been held up by some online commentators in defence of Ms Dong's stance. The businesswoman has not clarified her remarks, but had previously highlighted her company's exclusive use of local graduates. In 2023, for example, she was reported by local media to have said that her company's 13,000 research and development personnel did not contain a single overseas returnee, and was formed entirely of local graduates. Back then, she did not cite espionage concerns, instead championing the cause that Chinese schools were capable of developing talent. The Zhuhai, Guangdong province-based Gree Electric, best known for its air conditioners, until 2019 had as its largest shareholder a local state-owned company. It is now privately-run . 'The envy and admiration previously felt towards overseas returnees have declined,' said Dr Liu , a researcher at the Chinese Institute for Employment Research at Renmin University. Some employers, such as state-owned companies, have also become more wary of hiring overseas returnees in recent years, he added. Citing risk aversion as one possible factor in employers' decisions, Dr Liu said that for those which dealt with sensitive issues, 'the less trouble the better... why invite trouble (hiring foreign graduates) if the job can also be done by (local graduates)?' Another consideration, he added, could be virtue-signalling, or demonstrating to the authorities that these companies are supportive of national security and therefore trustworthy, even as they might offend a more liberal-minded audience . Ms Dong's remarks, which come as more Chinese scientists leave the US for China amid increasing rivalry between the great powers, have been criticised by mainstream media outlets. This, as China races to make new breakthroughs in science and technology amid sharper competition with the US. A commentary published by the Communist Party-owned Beijing News said that there was no need to 'stir up antagonism and stick labels on overseas returnees even if employers have their own considerations for not recruiting them'. Highlighting that there was now more 'high-end overseas talent' returning to China, the piece said that such remarks - a 'departure from common sense' - were 'especially offensive' and an 'affront' to overseas returnees. Education expert Xiong Bingqi, director of the 21st Century Education Research Institute in Beijing, said that China still needs more top talent from overseas. STEM courses in the US and Europe, for instance, have some advantages over what is available in China, he added. 'The US is already making it difficult for Chinese students to study STEM fields as it wants to maintain its advantage in technology and talent,' he noted. 'If overseas returnees get labelled as spies in China (and are thereby shunned), would this not be exactly what the US wants?' he asked rhetorically. Joyce ZK Lim is The Straits Times' China correspondent, based in Shenzhen. Additional reporting by Yew Lun Tian Join ST's Telegram channel and get the latest breaking news delivered to you.
South China Morning Post
02-05-2025
- Business
- South China Morning Post
China softens stance on US tariff talks, spy claims condemned: SCMP daily highlights
Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing China is assessing whether to start trade negotiations with the United States following representations from Washington, the Ministry of Commerce said on Friday, signalling a possible easing of the tit-for-tit tariff war between the world's two largest economies. Europe must navigate between the two powers, knowing that cutting an economic deal with one could make it impossible to do so with the other. Dong Mingzhu, chairwoman of Gree Group appliance firm in China, stirred controversy last month after saying Chinese educated overseas might be spies. Photo: Handout A group of Chinese entrepreneurs educated abroad publicly condemned a leading businesswoman's remarks that overseas-trained workers could be spies.
Malay Mail
02-05-2025
- Business
- Malay Mail
Chinese entrepreneurs abroad hit back after Gree chair flags returnees as potential spies
BEIJING, May 2 — A group of Chinese entrepreneurs educated overseas has publicly criticised controversial remarks made by Dong Mingzhu, chairman of Gree Group, after she suggested that returnees from abroad could be spies. Dong, often referred to as China's 'home appliance queen', reportedly told a closed-door shareholder meeting last week that her company would 'never use a haigui pai', or those who have studied or worked abroad, because of the potential risk they pose. 'There could be spies among them,' she warned, according to a leaked account of the meeting that has since sparked public outcry. In a sharply worded open letter published on Monday, the Society of Younger Generation Entrepreneurs Returned from Overseas of Shanxi Province — also known as the Shanxi Returnees' Chamber of Commerce — demanded that Dong apologise and be held 'accountable for her inappropriate remarks'. 'Ms Dong imposed the ungrounded 'spy' speculation on the entire group [of returnees], which not only lacks data support, but also exposes enthusiastic overseas students to prejudice,' the group said. 'We urge Ms Dong Mingzhu to correct her wrong perceptions and [maintain] an open and inclusive environment for talent development,' it added. The society also referenced a 2013 speech by Chinese President Xi Jinping, who described overseas-trained Chinese professionals as 'precious assets' and credited them with helping drive the country's technological progress. 'We, as enthusiastic patriotic returnees, will spare no effort to support the developments of our motherland as well as Chinese enterprises, and prove the absurdity of her remarks with our concrete actions,' the letter concluded. Gree Group has yet to respond to a request for comment. The controversy has reignited debate within China over the role and trustworthiness of returnee talent, known as haigui, amid rising geopolitical tensions with the West. The Chinese government has long promoted overseas study, with more than eight million students heading abroad since 1978, mostly to the US, UK and Singapore. Around six million of them have since returned, according to official figures. However, scrutiny around cross-border affiliations has intensified in recent years. In early 2023, China's Ministry of State Security issued a warning to students heading overseas to guard against recruitment by foreign intelligence services, citing 'real cases' of espionage targeting Chinese nationals. At the same time, Chinese students and scientists working in the US have faced their own accusations of spying, particularly in the context of rising US-China tensions and efforts by American lawmakers to curb academic and technological exchange with China.
South China Morning Post
02-05-2025
- Business
- South China Morning Post
Chinese entrepreneurs educated overseas hit back at ‘appliance queen' over spy allegations
A group of Chinese entrepreneurs educated abroad publicly condemned a leading businesswoman's remarks that overseas-trained workers could be spies. Advertisement The comments by Dong Mingzhu, chairwoman of Gree Group and China's 'home appliance queen', have fuelled debate over global versus local talent in China amid ongoing tension with the United States. Dong told a closed-door shareholder meeting last week that her company would 'never use a haigui pai', or people who had been educated or worked overseas, because there could be spies among them. 09:42 Trump promises to bring US manufacturing back from China, but will his tariffs work? Trump promises to bring US manufacturing back from China, but will his tariffs work? Her comments were leaked to the public and sparked controversy across the country. In the latest response, the Society of Younger Generation Entrepreneurs Returned from Overseas of Shanxi Province – also known as the Shanxi Returnees' Chamber of Commerce – published an open letter on Monday demanding Dong 'be held accountable for her inappropriate remarks and apologise to the overseas students and the whole society'. It also said that if her company had discriminatory recruitment policies, they should be rectified. Advertisement 'Ms Dong imposed the ungrounded 'spy' speculation on the entire group [of returnees], which not only lacks data support, but also exposes enthusiastic overseas students to prejudice,' the statement said. 'We urge Ms Dong Mingzhu to correct her wrong perceptions and [maintain] an open and inclusive environment for talent development.'
AllAfrica
30-04-2025
- Business
- AllAfrica
Gree Electric boss chided for calling overseas grads spy suspects
A comment by Dong Mingzhu, chairwoman of the state-owned Gree Electric Appliances, recently sparked Internet controversy in China. She labeled those who studied abroad as 'spy' suspects. Dong, 70, said at the company's shareholders meeting on April 22 that she would only hire talents who graduated from local universities, as spies could be among those who came back from the West. She said it's difficult to check who is and is not a spy. Dong stressed that Gree is a global leader in manufacturing refrigerant compressors with many patents and that she is the incumbent chairperson of the International Organization for Standardization (ISO) 's committee for testing and rating refrigerant compressors. State media criticized Dong for stereotyping and discriminating against the returnees and overseas Chinese students. The Shanghai-based Xinmin Evening News said Gree should blame itself for failing to attract and retain talents with international experience. The Beijing News said Dong's 'spy' speculation lacks common sense and hurts Gree's corporate image. The Beijing Business Today said Dong's decision to reject all returnees was wrong and dangerous. Hu Xijin, former editor-in-chief of the Global Times, said Dong should apologize to the public, especially to the returnees. 'How to run Gree is the right of Dong Mingzhu and the company's management team, but altogether rejecting a group of people is against the Labor Law,' Hu said. 'Such a comment at the shareholders' meeting has a negative impact on society and is inconsistent with the country's opening-up policy.' He said Dong's comment had exceeded the scope of the company's independent operation and led to negative public opinion. 'Now, a large community of 'returnees' is feeling rejected and hurt. I believe that Dong did not intend this. A responsible company and its leaders should express regret to the harmed group,' he said. Hu said that as the external environment has become more complicated this year than in the past, it's good that Chinese people increase their national security awareness. However, he said rejecting all returnees is an overreaction, not China's policy. Zhou Dawei, a distinguished fellow at the Legal Research Institute at the Chinese Academy of Social Sciences (CASS), who studied in the United States, said 'returnees' could file a legal case against Dong and Gree. 'Dong labeled millions of overseas returnees in mainland China as 'spy' suspects. The word 'spy' itself is a severe criminal charge,' Zhou said. 'Her remarks directly constituted blatant identity discrimination. They are not only wrong but also illegal.' He said, as an influential public figure, Dong should beware of what she says. He said Gree's recruitment policy might have violated Articles 25 and 26 of China's Employment Promotion Law, which ensures the fair treatment of all workers. On Wednesday, the Shanxi Overseas Returnee Chamber of Commerce released a statement urging Dong to apologize and Gree Electric to effectively rectify the discriminatory clauses in its talent recruitment policy. 'Dong Mingzhu labeled the entire returnee group as 'spy' suspects. This move lacks data support and exposes prejudice against overseas students,' the chamber said, adding that Dong should eliminate prejudice and create an inclusive environment for all talents. 'Gree Electric failed to diversify into the smartphone and auto businesses. Now, Dong is spouting this kind of Boxer-style anti-intellectual populist nonsense, trying to cater to some populists,' a Guangdong-based netizen said. 'Her comment offended not only the returnees but also people with an international vision and a scientific spirit. These people are those who have real purchasing power.' From 1899 to 1901, the Society of Righteous and Harmonious Fists, known as 'Boxers,' won the support of Empress Dowager Cixi. An imperial decree was a de facto declaration of war on foreign powers. The xenophobic group's members believed that they were invincible due to certain supernatural powers. After Boxers killed dozens of foreign missionaries and countless Chinese Christians, eight nations led by Britain formed the Siege of the International Legations, which sent troops to rescue the trapped foreigners in Beijing and defeated Qing's troops. The Qing government collapsed in 1911. Some pundits pointed out that Gree had lost commercial secrets due to the wrongdoings of 'returnees.' In 2023, an engineer from Gree Research Institute with a master's degree from an overseas university leaked core compressor technology to a foreign company. The technology involved key areas such as energy efficiency improvement, noise control and material innovation, causing Gree to lose about US$1.2 billion in orders in the Southeast Asian market. Its customers turned to Japanese companies Daikin and Mitsubishi. In 2020, a returnee surnamed Wang, who worked for Gree's subsidiary Intelligent Equipment Company, was accused of stealing the technology of computer numerical control (CNC) machine tools and attempting to sell it overseas. He was later investigated and dealt with by the police. In 2023, a former employee of Gree's Thermodynamics R&D Center with an overseas scientific research background leaked the core parameters of a heat conduction system, causing Gree to lose 230 million yuan (US$31.6 million) in orders in the European market. An Anhui-based writer says China's national security authorities uncovered 123 espionage cases in 2024, 15% involving returnees. Based on these figures, the writer says Dong's complete rejection of returnees is justified. Many netizens also supported Dong's comments. They said many wealthy kids studied overseas but were not necessarily outstanding. Figures show that returnees still have value in China's job market. On April 11, China's Ministry of Education published a report saying that more than 800,000 overseas Chinese students returned to China last year, up 58% from the level in 2019. Last year, 12.22 million students graduated from local universities and high schools. About 43% of overseas students took computer science and engineering subjects. In February, a Chinese job-hunting website, published a survey report stating that the number of overseas students who returned to China in 2024 grew by 20%. However, the report did not provide the exact number. It said four in five returnees held master's degrees, and the top ten subjects were business management, finance, economics, marketing, law, accounting, human resources, international business, education and computer science. It said many returnees wanted to join Chinese internet giants, while many entered the process manufacturing, instrument manufacturing, exports and imports, new energy, and environmental protection industries. The average monthly salary of returnees has grown for the sixth year to 15,440 yuan in 2024, compared with 11,739 yuan in 2019. The average monthly salary of domestic university graduates is about 6,000 yuan, according to the Ministry of Education. Read: US canceling Chinese student visas without just cause
