There are great pools of human resources of to be harnessed, but countries need to be smart in doing so, an expert says

The flow of talent in and out of China is likely to increase over the coming years, producing great economic dividends for the country but also throwing up many challenges for policymakers, experts say.

"China is in the early stages of progress (in attracting talent),"said Demetrios Papademetriou, president of the Migration Policy Institute, a think tank in Washington. "In progress, what matters is direction, and clearly this is moving in the right direction."

Papademetriou was in Beijing recently for the Roundtable on Global Talent Movement, at which trends in the flow of talent and measures to handle it were discussed.

Capital flows usually determine which way international talent flows, Papademetriou said.

As many US companies have expanded into China, including setting up operations in the country, overseas talent has flowed China's way, Papademetriou said.

That flow has been bolstered by talented Chinese working overseas who have decided to return home, encouraged by the country's growing economic prowess. In addition, given the economic problems much of the world is facing, China is seen as having a lot more potential than many other places, he said.

"Ultimately I think within five to 10 years, if China becomes a truly desirable destination, it becomes easier to start a company, to recruit talent, and visas become easier (to obtain). all of these will become part of creating conditions for people to succeed in China. When that happens, more Chinese will be returning."

Wang Huiyao, director-general of the Center for China and Globalization, said there is a huge imbalance between China and the US in attracting talented people from the other side, and he is calling for more government incentives in both countries to encourage mobility of talent.

In recent years, the number of Chinese migrating to the US or going there for study has increased rapidly. More than 200,000 Chinese were studying in the country last year, and about 80,000 Chinese migrated to the country, many of them those with technical skills and those with expertise in economics.

By contrast, fewer than 15,000 US citizens were studying in China in 2011, about 3,500 more than four years previously.

"An influx of international talent would create great innovation and entrepreneurship," Wang said.

"But in China, even in Beijing and Shanghai, foreigners account for less than half a percent of the population. Overseas students account for less than 0.4 percent of the student population, compared with the 5 to 10 percent that prevails worldwide."

Papademetriou said governments cannot play a big role in attracting talent, but can offer a better environment in which talent can grow, and then wait for that talent to make choices.

"It is not how we choose them, it is how they choose us."

When talent people look at pursuing their careers in foreign lands, they put a premium on at least four things, he said: clear, fair and transparent immigration procedures; reasonable paths for permanent residency and for those who want citizenship; recognition of foreign qualifications and credentials and license certification; and whether family members will have a chance to work or receive education.

The world's demand for talent will rise in coming years, Papademetriou said, so the biggest challenge is for countries such as China to increase their supplies of talent and stay ahead of other countries.