China's big fish graduates seek smaller ponds

While preferential policies and salary breaks attract the intelligent and the ambitious, top cities are struggling to curb excessive population growth.

Beijing is completely enclosed by its two neighbors, Hebei province and Tianjin municipality. A coordinated development plan for the region means that industrial and human resources are moving out of the cramped and crowded capital and into the comparatively stress-free hinterland. The city has also been ordered to reduce the quota of new permanent residence permits, which naturally leads to fewer job opportunities.

The expansion of high-speed rail has greatly reduced journey times throughout the country, also contributing to the loss of admirers of first-tier cities.

"Previously we talked about 'fleeing' Beijing, Shanghai and Guangzhou. Now, it is more like a natural flow based on more uniform urban development," said Xiong Hanzhong, founder of the Beijing youth stress management center. He describes the trend as a "normal and rational" development.

East west, home's best

Hu Yi (alias), graduate of the China University of Mining & Technology, never wanted to land a job in the capital. She works as a geological surveyor in Kunming, a southwestern city she describes as having a good climate and promising development prospects.

Seeing her classmates getting offers from the capital, she was not the least bit jealous. "I know what I want. I want a better quality of life, not just a job."

If you want to start your own business, a smaller city may offer a lot more. Chen Jing, 28, returned to his hometown. Kaixian is a small county in Chongqing municipality with a population of just over a million, 300 km away from the seething megacity. There Chen founded an organic food company Ancient Agricultural Development. He sells honey and nuts via the Internet. His business is booming.

When he graduated in 2010, he visited many cities before choosing a site for his company. With cheap labor and natural food resources plentiful, he opted to return to his roots.

"The rent here is just one third of that in Beijing, and you know how important it is for a startup to save money," he said.

Sociologist Zhou believes the flow of graduates into smaller cities and towns will not just relieve the population burden of the metropolises, but balance the distribution of human resources and bring growth to less-developed areas.

"These graduates will grow into a strong middle class, which will not only be good for the social and economic structure of smaller cities, but will be good for the whole nation," he said.

Subterranean homesick blues

While some are beginning a new life in less-renowned cities, many graduates still come to the big cities and insist on staying.