Fluency in English remains a prerequisite for any company or individual wanting to do business internationally. For decades, native speakers have sat back, confident in the knowledge that they would be understood wherever in the world they travelled or worked. While this is still mostly true, the growing importance of China means that employees who have some level of proficiency in Mandarin, as well as English, are increasingly sought after.

While China's education system places great emphasis on learning English, English speakers remain slow on the uptake to learn Mandarin. Thanks in part to a broader education, Western employees still have the upper hand in the employment market here, but as a younger generation of Chinese become better travelled and develop the skills demanded in international companies, their linguistic abilities could soon give them the edge over their Western counterparts in the global employment market.

The economic benefits of linguistic ability are obvious, says David Graddol, linguist and author of the book "English Next". He estimates that by 2010, the GDP accounted for by the Chinese language will be 22.8 percent. That is only just below the figure for English, which is 28.2 percent. It makes sense then that if European companies want to remain in the loop, they have to learn the language.

Foreigners in China

Students today are beginning to realize the importance of competence in foreign languages, particularly in Mandarin. "The attractiveness of Mandarin to learners across the world is growing, and language schools in many countries are expanding their provision to include it," says Graddol. Europe's higher education institutes are getting the message: 119 universities and higher education institutions now offer a course in Chinese or Asian studies, and half of Denmark's four major universities offer Chinese.

In European schools, learning about Chinese history, culture and customs is particularly important, says James Dyson of Dow Jones and Company, Beijing. "While I think learning Mandarin can wait until higher-education level, understanding China and its people should be prioritised in schools. At higher education level, Mandarin should be more widely available and encouraged. I think that if students have a better understanding of China from their school education, there will be greater interest in and demand for Mandarin courses at universities and higher-education colleges."

But the effort and time required to learn Mandarin is a big disadvantage for most Westerners.

For those who have taken the plunge and achieved a certain level of proficiency, however, the advantages are clear. "For business people, it's important to speak Mandarin if they want to get further into the Chinese market," explains Fiona Wang, a native Chinese journalist at China Daily. "Being able to speak the language and know the local culture can shorten the gaps between business partners and reduce the chance of misunderstanding. For those who move to China to work or live, language skills will help them get a better job and have an easier life in China."

But more than that, as Dyson says, the movement of Chinese companies into overseas markets means that the value of being able to speak Mandarin - not just in China, but anywhere in the world - will be a huge advantage in the job market.

China catching up

In China, students begin learning English from the age of twelve, at the latest, and study at least an hour of English every day. Further investment in education is also in place, and in the government's 11th Five Year Plan, enrolment in tertiary education will be increased by 10 percent, up to 23 percent of the population. "Having English skills plays an important role in job hunting in China," says Wang, "You will stand out clearly among the crowds. Whatever the job a person applies for, good English communication and writing skills always help."

Despite Chinese employees having a distinct communication advantage in the China job market, many foreign companies with offices in China have in the past preferred to employ expats, even though this often means paying considerably higher salaries. International businesses require employees with more than just linguistic ability. Prospects graduate advisory service lists initiative, self-awareness, motivation, leadership, problem solving and interpersonal skills as being invaluable assets that all employees should have. But it is in these areas that Chinese graduates currently fall short.

Former business English teacher John Butters says he thinks there is more pressure to conform in the Chinese education system and a greater focus is placed on learning facts rather than analysing them. "Suitably qualified and experienced Chinese professionals are hard to come by," says Butters. "But those who are can command salaries that are considerably higher than their less experienced counterparts."

According to Dyson, foreign companies choose expats to work in China because companies prioritize the need to have managers with a thorough understanding of their global business, culture and ethics. "You see the same practice in other countries, so this isn't unique to China." But having a China strategy is very important for any global company, and so it's understandable for them to want an experienced manager to oversee it. Dow Jones, for example puts a lot of emphasis on staff training, in China and abroad, Dyson explains. "At any point in time, we have Chinese staff training overseas, getting to understand the company, its business and the skills required for effective business news reporting and editing."

The growing attraction of Chinese employees is perhaps thanks to China's opening up policies. Approved destination status has made foreign travel possible and the government is actively encouraging students to go abroad to study. According to Xinhua News, 118,500 Chinese went to study abroad in 2005. Of those, 27,200 chose to return, attracted by the strong economy and preferential policies from the government. "In many sectors foreign companies are localizing," says Dyson. "Extremely capable Chinese staff are filling the positions once held by expats. The Chinese managers have the language skills, an understanding of their company's business and culture, and the local business environment. I think this trend will continue."

With a Western education, returning Chinese are clearly a group to watch out for. They are often highly skilled and highly motivated, but they have the added advantage of being well connected. With China as their home, patriotism perhaps makes them willing to invest more time and resources than their foreign counterparts.

Time to act

Many foreigners living and working in China, whether as recent graduates, employees or CEOs, have had it easy up until now. While the situation remains comfortable for Westerners already in place, none should be lulled into a false sense of security. A younger generation of Chinese are mobilising. For how much longer the power of English will remain a passport to a certain degree of success remains to be seen. If China continues its current rate of development, then there is no room for complacency regarding the value of learning languages and, in particular, Mandarin Chinese.

While the language of Shakespeare is not in danger of being relegated to the grave, it is in the process of diversification. And as globalisation continues apace, languages other than English will become increasingly important. "Generally speaking, I don't think Mandarin will ever challenge the status of English as a world language," says Wang. "But as China plays a more important role in the world, foreigners will more frequently be involved with issues that are relevant to China, so speaking or writing Chinese will be helpful."

"If Europeans fail to study Mandarin and the Chinese approach to business, it will put them at a disadvantage," warns Dyson. "Not least because a lot of information - readily available, but only in Chinese - won't be easy to access." The writing, it seems then, is on the wall. Unfortunately it happens to be in Chinese characters. Will you be able to read it?