MBA candidates at the Guanghua School of Management Varmuyah-Amoulah Sirleaf (left) and Ariel Daniel brush up on their calligraphy. Photo: Li Hao/GT

As more foreign graduates eye opportunities in China's growing economy, many face a tough dilemma over whether a Masters in Business Administration (MBA) or Chinese-language degree offers the best launch pad for their careers in the country.

Multinational companies are more likely to hire MBA graduates, but few skills are more desirable to many employers in China than fluency in the native language.

An MBA and degree in Chinese vary significantly in terms of cost and value to recruiters, who must also consider the influx of returning overseas-educated Chinese graduates competing for the same lucrative jobs as their foreign rivals.

Taking care of business

Ariel Daniel was at a career crossroads before she decided to pursue an MBA in 2012. The 31-year-old American began her MBA at Hitotsubashi University in Tokyo, Japan, and enrolled at the Guanghua School of Management (GSM) affiliated with Peking University in 2013 as part of a double-degree partnership between the two universities. After she graduates in summer this year, she hopes to find work at a multinational company in a first-tier Chinese city.

"I've been asked many times why I chose [to study an MBA in] China. I could have easily gone to a US business school, but I didn't want that. China is the biggest emerging market and where much of what is new in business is happening," said Daniel. 

Taught in English and ranked the top Chinese mainland MBA program in 2014 by the Financial Times, the GSM's course has students from all over the world. The majority are from the Middle East and Asia (36 percent), followed by the Chinese mainland (34 percent) and the Americas (10 percent).

Daniel can now speak basic Chinese after learning the language for three months on the sidelines of her MBA. Despite conceding that her lack of fluency could be a disadvantage in some employers' eyes, Daniel said her priority is to master her MBA course work. 

"I believe Chinese is very important, but for now English is the language of business," said Daniel, who has also studied Japanese, French and German. "I want to work for a company in Asia involved in international business, and I'm sure there is a place for me even without being proficient in Chinese yet. For this reason, I've focused more on getting a wide variety of business-related skills and less on language."

MBAs made in China

Costs for full-time MBA programs in Beijing start at around 178,000 yuan ($29,354), a fraction of the $80,000 in tuition fees asked by most top business schools in Europe and the US. But a lower cost doesn't necessarily mean lower prestige, with China home to five of the top 100 business schools worldwide based on 2013 Global MBA Rankings.

Martin Zhu, director of the career management center at the Cheung Kong Graduate School of Business (CKGSB), said enrollments of foreign MBA students at the business school climbed 9 percent from 2011 to 2013. Based in Beijing, the CKGSB's MBA program spans 14 months for full-time students and is taught in English.

"We are seeing a growing number of international students come to China to pursue MBAs. Even though many of these students don't speak Chinese, studying here exposes them to Chinese culture and society. They have a competitive edge and can benefit as many Chinese enterprises go global and China continues to see an inflow of foreign direct investment," Zhu said.

The cost of an MBA at the CKGSB - ranked by the Chinese edition of Forbes magazine as having China's most valuable MBA program in 2010 - is at the higher end of the scale in China, with the tuition fees for 2014 398,000 yuan.

"More than 40 percent of our permanent professors have experience at top international business schools and deep insight into China," said Zhu, adding that candidates face a strict selection process based on their "motivation, personality and post-MBA career development plan."

MBA candidates from the Cheung Kong Graduate School of Business celebrate their graduation. Photo: Courtesy of the Cheung Kong Graduate School of Business

 

Bridging the linguistic divide

However, taking the MBA route isn't for every foreigner with business aspirations in China. David Goodman-Smith, 32, first came to China in 2005 as an exchange student. Graduating in 2003 with a bachelor's degree in Chinese history from Santa Clara University in California, Smith returned to China in 2005 and opened a bar in Yingkou, Liaoning Province.

"I was determined to learn the language, and realized the only way to do it properly was to commit to it and study full time for an extended period," said Smith, a dual citizen of the US and UK.

Now the managing director of China Study Abroad, a company that arranges study, teaching and internship placements in China, Smith said fluency in Chinese "opens more doors" for foreigners eyeing business careers in China. 

"Studying two to four hours a week back home is never going to be enough to learn anything useful. It is great for basic Chinese, but being in China immersed in its culture and language is by far the most effective way of learning," he said.

Hajar Yusof, 26, studied a one-year Chinese-language course at Beijing Language and Culture University before joining a tech startup in Kuala Lumpur, Malaysia. She described her studies as a "truly immersive experience" that gave her an advantage in her home country, where proficiency in Chinese is favored by many employers.

"I was actually quite hesitant at the start, but was pleasantly surprised when I arrived [in China]. Students in my course were from diverse backgrounds. It opened my eyes to see so many foreigners fluent in Chinese," said Yusof, who graduated in 2010. 

Shellshocked by returning graduates

Irrespective of whether foreign graduates have an MBA, Chinese-language degree or even both, their main competitors are Chinese graduates returning after their studies abroad. Known by the slang term haigui (sea turtle), returning Chinese graduates are highly sought after by State-owned and multinational enterprises. Aside from being overseas-educated native Chinese speakers, they offer a long-term commitment to China that few foreigners can match.  

In 2013, 85 percent of Chinese graduates from overseas universities returned to China, up 17 percent on the previous year, according to the Ministry of Education.

Kim Jeung-hyun's dream of immediately landing a marketing job at a Beijing-based multinational company didn't quite work out after she graduated with a bachelor's degree in Chinese from Beijing Foreign Studies University (BFSU) in February. Citing intense competition from Chinese job seekers, Kim has temporarily put her career in China on hold.

"My father told me learning Chinese would help me get a lucrative job, but competition in the Chinese job market is very fierce. Many of my classmates have gone back to their home countries to find work," said 24-year-old Kim, who earlier this week returned to her hometown of Busan, South Korea. She plans to work for a few years to gain experience before revisiting her China career ambitions.

Director Zhu from the CKGSB said foreign MBA graduates striving to gain a foothold in China sometimes adjust their sights to their home or neighboring countries.

"As the US and European economies gradually recover, there is an increasing demand for [MBA graduates] in the Asia-Pacific region, which has seen strong economic growth and abundant opportunities," he said. "We are now seeing more Chinese with international backgrounds filling CEO and other senior-executive positions once held by expats."

Foreign students study Chinese at Beijing Foreign Studies University. Photo: Li Hao/GT

Meeting employers' expectations

As the founder and CEO of Chinese-language education startup Serika, He Ping insisted that business smarts and polished Putonghua among foreigners can go hand in hand and "aren't mutually exclusive."

"If you consider your skills in a pyramid, Chinese would be near the bottom and an MBA would be higher up. If you want to find your feet in China, you have to learn Chinese. If you can speak Chinese, you can leave a deeper impression on your colleagues and superiors. Being able to partake in day-to-day talks and office jokes can cement your relationships," said He, 29.

"There are a lot of foreigners with MBAs now in China, so it doesn't necessarily make you stand out from the competition. If a senior executive can't speak Chinese when leading their team on a project, however, they can't contribute much no matter how rich their experience."

When Adam Steinberg graduated from university in 2000 and started working in China, proficiency in Chinese was enough for an expat to get a decent job at a major foreign company with a presence in China. But multinational companies in the country now expect foreigners to speak Chinese, said Steinberg, head of financial communications at the Beijing office of multinational public relations firm Weber Shandwick.

Steinberg, who graduated with an MBA from the CKGSB in 2011 and speaks fluent Chinese, said as a recruiter he values a candidate's dedication to learning Chinese more than their actual proficiency. 

"More than language expertise itself, I value a candidate's learning ability and ongoing passion for learning," said Steinberg, 36.

"Of course, it's possible to work in China as a foreigner without studying Chinese, especially if candidates have advanced skills. But I highly recommend and appreciate a candidate's passion for learning Chinese."

Zhu Xi contributed to this story