A friend of mine who works for a large consulting firm is busy moving, downgrading to be exact. Her housing allowance was cut from RMB30,000 to RMB10,000. If moving is tedious, imagine how horrific it is to move to a worse place. I have heard a lot about how expats have been hit hard by the current recession, that many are gone and the rest have to take significant cuts in salary and benefits. It seems the days of champagne brunch and art gallery visits are over. Will the charmed existence of the expat be a tale like those of Shanghai in the 1930′s? There is no official figure of the expat causalities yet. But I suspect talking to operators of some favorite expat hangouts in town will give a good indication.

On the other hand, there has been rising interest in Chinese with overseas education and work experience. The Shanghai government and a number of state owned enterprises have gone on headhunting trips to New York and London. They especially liked Chinese with overseas experiences who theoretically would have the best of both worlds and bridge the gaps in language, skill and exposure. In addition, many of them command a more competitive salary or are willing to take less. For corporates, it seems to make sense to look for talent in this group, especially for mid-level management positions. But at the same time, many companies are putting freeze on new hires or being extremely cautious about it. So it doesn’t look too promising for anyone.

Who will support the wine bars sprouting all over the city now?