I have mixed feelings on this. I have seen both sides of the coin, from both an employers and employees perspective.

The system has needed updating for some time but as usual in China its either a little or a lot, the powers at be have chosen the latter and it has really changed things quite drastically this year in terms of the application process.

Without doubt it has made things more difficult for China to attract new talent but as Martin said it has made it easier for FT's who are already in China to negotiate, particularly when it comes to renewals. It is certainly a lot less trouble to renew an FEC and RP than obtain a brand new one especially if the FT is already on our books. Chinese are generally not so good at thinking out of the box but they are smart enough to do simple calculations that maybe an annual salary rise of 500rmb per month equates to less than the overall cost of recruitment, hiring and everything else and are far more likely to agree to it than before.

I mentioned my feelings quite openly on another thread a few months ago that some things I read here and on other places annoy me intensely as nothing is set in stone. Not all employees are out to rip you off and do genuinely try to follow the rules and honour contracts but the biggest headache I have had to deal with is 'no shows'. Even having obtained the Invitation Letter and sent it to the intended FT in another country, we still have to sit with fingers crossed hoping they haven't changed their mind. I have had this happen and one didn't even bother to tell us.

This is one positive benefit of this new system it has virtually eliminated duplicate applications and we are able to detect if this is occurring. I can confirm what cable said about the new identifier system, all foreigners now have one and it does follow you through any subsequent employment in China. If anyone is in any doubt ask their FAO, I don't see why they would deny the fact. We can do much more online now, again positive in that it has reduced the numerous visits to our local PSB.

Back to your original question, my opinion is yes it certainly has especially in the more isolated and less desirable provinces.