Why Thousands Of Chinese Tech Execs Are Returning From US To Their Homeland

A combination of hostile US actions towards Chinese computer and engineering scientists - including arrests for purported espionage, threats to revoke student visas and changes to the H1B visa program, as well as growing competitive tensions with China have made the US a less welcoming location for Chinese tech talent. 

At the same time, the Chinese government has been wooing Chinese scientists with money, labs and other forms of support. The result is that China is attracting thousands of skilled Chinese tech experts who a few years ago envisioned spending their careers and lives in the US. JL

Selina Cheng reports in Rest of World:

According to a Stanford University study, 19,955 Chinese-origin engineering and computer scientists who built their careers in the U.S. left the country, with many returning to China. President Trump’s threats to revoke Chinese visas and tamper with the H-1B visa program have dampened Chinese professionals’ enthusiasm for building careers in the US. Anti-espionage and intellectual property theft prosecutions, as well as federal arrests of Chinese scientists in the U.S., have also deepened mistrust. Beijing has lured Chinese-origin software engineers, tech entrepreneurs, and researchers to build their careers at home. The Chinese government has dished out generous relocation subsidies. Universities in China have promised scientists their own labs, guaranteeing funding, while tech companies have empowered executives.

According to a Stanford University study, nearly 19,955 Chinese-origin scientists who built their careers in the U.S. left the country between 2010 and 2021, with many returning to China. Departures among engineering and computer science professionals spiked in 2021.

China's long standing efforts to back talent are starting to pay off at a time when its tech and science rivalry with the U.S. has intensified.

 

U.S. President Donald Trump’s threats to revoke Chinese student visas, tamper with the H-1B visa program, and sanction TikTok have dampened Chinese professionals’ enthusiasm for building careers in the country. Past events, such as anti-espionage and intellectual property theft prosecutions, as well as federal raids and arrests against Chinese scientists in the U.S., have also deepened mistrust.

Beijing, meanwhile, has been luring Chinese-origin software engineers, tech entrepreneurs, and researchers to build their careers at home. The Chinese government has dished out generous relocation subsidy programs. Academic institutions in China have promised scientists their own labs, guaranteeing funding and support, while tech companies have empowered executives to draw on blank canvases.

“The political tensions have made the working and living environment, particularly those in North America and some in Europe, not as comfortable, not as safe and ideal as it used to be,” said Lili Yang, assistant professor at the University of Hong Kong who studied the reverse migration of Chinese researchers.

Rest of World spoke with Chinese returnees from Silicon Valley to hear what pushed them to reshape their career paths. The quotes have been edited for length and clarity.

Chief operating officer of Volvo China

Zhu Ling, Shanghai

China had just joined the World Trade Organization when I went to the U.S. in 2004 for my postgraduate studies. I felt the U.S. was more advanced in cars and I wanted to intern at one of the Detroit “Big Three” automakers after graduation. But then came the 2008 financial crisis, and they all basically went bankrupt. I returned to China for visits, and everything felt different each time I came. China was developing at an incredible speed. So I didn’t think too much and came back in 2011.

China’s car industry wasn’t actually that good then, but I sensed it would definitely become the largest car market in the world. The speed meant there was a shortage of people to get things done. So, for those of us who returned from the U.S. with some foundational knowledge, they were very willing to let us lead a segment and take charge of a business area.

I’ve personally worked on nine to 10 car models in the Geely group [Volvo’s parent]. It’s unrealistic and impossible in Europe or America to participate in or lead so many complete projects within a decade or so. I believe returning to China was the most correct decision in my life.

Founder of metal parts exporter CWB Industrial

He Yang, Shanghai

I was an engineer at Meta, but after a year or two, I felt there wasn’t much more to learn or to grow. Before I resigned, during the Web3 boom in early 2022, I researched several potential ventures I could start in the US, but I had job-seeking pressure as an H-1B visa holder. I decided to start a business back in China using my family connections. 

I registered my business in Shanghai at a startup incubation campus for overseas returnees. It is government-backed and provides office space, rent subsidies, financing opportunities, and operational support like tax assistance. I don’t think I’d receive this kind of comprehensive support in the U.S.

I now sell basic metal fastening sub-components to overseas clients. Car or machinery factories rely on our parts. If we don’t supply them by specific deadlines, their production lines will halt. Even though there are trade issues between the U.S. and China, I am not worried because we don’t need to focus solely on the U.S. market; new opportunities will emerge. I now have clients in many countries — from Mexico and the UAE to Singapore.

It’s unlikely that this industry will be replaced in the short term by somewhere else, like Southeast Asia. It’s highly integrated. There are several steps in each nut and bolt that we make, and each step is done by a different, highly specialized factory. In China, I can do all of these steps in a single city in a day or two. It’s a significant advantage. Other regions simply don’t have this speed and convenience.

Founder and CEO of augmented-reality glasses manufacturer XReal

Xu Chi, Shanghai

My story is one of tech globalization. I chose to return to China because many innovations in algorithms and software are from the U.S., but innovations in hardware and infrastructure have increasingly developed in China. If you look back over the past decade, it’s almost impossible to name small or medium-sized American companies that started from scratch and succeeded primarily with hardware. On the other hand, you find that Chinese companies are innovating and iterating new generations of technology at a faster pace. 

I returned in 2016, and there wasn’t as much confrontation or competition between the U.S. and China at the time. Three years later, my former employer Magic Leap sued us for intellectual property theft. That was dismissed by U.S. courts because it was groundless. I don’t think the lawsuit was related to U.S.-China relations. Magic Leap did the same to other American firms to delay competition coming from rivals. My former employer in the U.S. was very slow in hardware development and even Apple’s Vision Pro fell somewhat below industry expectations. Meta spent so much money and its products still feel lacking. 

We are Google’s second manufacturer for its Android AR glasses, after Samsung. Manufacturing talent is highly concentrated in China, and after years of producing for other brands like Apple, some core component makers in China’s supply chain are now driving innovation. 

Member of Unity China’s game engine team

Ariel Tan, Shanghai

I was laid off last year after 10 years in the U.S. I initially wanted to find my next job in the U.S., but I didn’t win the H-1B lottery. The visa issue was a huge problem, and many prospective employers turned me down at the final stage. I started thinking about returning to China. I didn’t expect so many Chinese recruiters would approach me but many of the gaming companies I liked in China extended offers. 

I’ve just been back for a month, but I think if I settle down here, I would very much be able to make my own game. This idea became much stronger after I returned to China. In the U.S., it is possible to achieve things like buying a house or a car from a salary, but here, in Shanghai, you can’t rely on the salary from a job alone. 

The biggest potential in starting a gaming business in China is that the probability of finding a collaborator here is very high, because there’s a huge base of talented people, and many of them are at the same skill level. The fundamental skills of programmers in China are solid. People in the U.S. are more of a mixed bag. It has excellent, possibly genius-level people, and then there are some people who are barely getting by. 

Head of software engineering at agentic AI firm Sleekflow

Ray Ma, Hong Kong

I know some people returned to China because they had problems like being laid off or with their H-1B visa expiring, but I was already a U.S. citizen. My motivation was to work on more AI-related stuff. In Silicon Valley, things change really fast. Either you make the change, or you’re out of the game. 

I was a director at LinkedIn, and the AI jobs in the U.S. would be a big detour for me. I probably would have to start in a very junior role. So, the best tactic for me is to work at a company that doesn’t just focus on AI but also has other businesses. At Sleekflow, I can have hands-on experience working on AI as a manager.

My wife and kids have stayed behind in the U.S. Sleekflow is trying to tap into the U.S., so if it works out there, that probably would be an even better set-up for me, because I can return to the U.S. and help with the company’s growth there.