Beijingers Scoff at WSJ Claim Foreign Entrepreneurs Are "Heading Home"

Beijing entrepreneurs have responded with skepticism to a recent Wall Street Journal (WSJ) article suggesting foreign businessmen were "heading home, disillusioned."

The article cited increased taxes, regulation, and political control as factors driving American entrepreneurs out of business. However, the graphic used seemed to contradict the hypothesis, showing numbers of "newly launched or registered companies by foreigners in China" rising, not falling.

"Opportunity is where you find it," said Jeffery Powell, co-owner of an international trade company, and Frost, a popular Beijing bar and restaurant. "I’m doing just fine right now. Although I do know a number of people that left this year, not because of hard times per se but more because they were being sent home or otherwise."

Powell acknowledges that some sectors face greater challenges than others.

"F&B [food and beverage] was especially hit hard over the last few years. Mostly however it is their own fault, with sketchy licensing and locations."

Among the evidence offered by the WSJ article was declining enrollment at Shanghai American School (SAS). However, Hamilton Gregg, educational consultant and beijingkids regular contributor, questioned whether this necessarily meant there were fewer foreign entrepreneurs in the country.

"International schools which depend on foreign passport holders have been hit recently. They are expensive for one, but there are fewer families coming to China. There are also more options for families to choose from. Many enroll their younger children in Chinese schools. But with the growth of bilingual schools and other options such as boarding schools in the US/UK, the dispersement of students may be impacting student numbers at schools like SAS."

Schooling costs certainly are an issue for families. One parent who asked to remain anonymous was concerned about what will happen when his son reaches school age.

"Yeah, when international schools are 20k a month, it can become a problem," he said. "Business is not my problem – school prices are."

But he remained enthusiastic about the opportunities in Beijing. "I would love to stay, sure," he told us.

Powell too was positive about the capital as a place to raise children. "I really truly feel my family is safer and better off here than in the Wild West we call the United States at the moment," he said. "And until people stop getting shot at schools, concerts, parades or shopping malls I’ll not even consider it leaving. The pollution in the air is my only concern. Otherwise, China seems pretty safe."

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This article originally appeared on our sister site beijingkids.

Photo: wsj.com