Country experience: China: compilation of mode 4 number of persons
16.31. China was developing the methodology to estimate the number of mode 4 persons for many years. The work was focused on two areas: overseas contracted projects and overseas labour service cooperation. The former refers to overseas construction projects carried out by Chinese firms and their foreign affiliates. It includes persons working on projects where the establishment of a branch or affiliate is not necessary (either for short-term projects or those that do meet the criteria for the establishment of a branch), i.e., referring to contractual services suppliers in the construction sector (most of the income refers to such projects). It also covers employees sent by the mother (construction) company to work in affiliates or branches abroad (intracorporate transferees). The overseas labour service cooperation refers to contractual service suppliers. They are employed by the China Labor Service Cooperation firms that offer services to overseas firms and organization (i.e. clients abroad) on the basis of on service contracts. Data on outflow and stock of mode 4 persons by type of contract is almost completely covered by the direct data collection of China. Self-employed contractual service suppliers are not covered, nor are intracorporate transferees in other sectors.
16.32. According to the Regulation of Overseas Contracted Projects and Regulation of Overseas Labour Service Cooperation of China, in order to be able to sign contracts, qualified enterprises should apply for approval for the right to trade services through the presence of natural persons. The relevant authority is not only responsible for applications of enterprises or services suppliers, but also participates in the collection and aggregation of data on outflow and stock of mode 4 persons in the category of contractual services. Two statistical programs have been jointly established by the Ministry of Commerce and the National Bureau of Statistics. According to those programmes, relevant enterprises are obligated to report required information, such as the type of service project, outflow and stock of persons, occupation or overseas work, length of stay, revenue and country of destination. Administrative sectors at all levels collect data and check it. The national authority is responsible for the aggregation and annual publication of the data in the China Statistical Yearbook and the Chinese Statistics of Trade in Services, as shown in table 16.1. Data are also broken down into eight sections of the Industrial Classification of the National Economy of China (agriculture, forestry, animal husbandry and fishing; manufacturing; construction; transport; computer services and software; accommodation and restaurants; scientific research, education, culture, sanitation and sports; and others.