The World Health Organisation said in March that air pollution contributed to seven million deaths worldwide in 2017, with 40 per cent of those coming from the region dominated by China under the WHO's classification system. Outdoor air pollution can cause lung cancer, a WHO agency said last year, ranking it as a carcinogen for the first time.
Panasonic of Japan is considering increasing a living allowance for overseas workers in China by an undisclosed amount based on environmental factors, including air pollution.
Some companies remain reluctant to add to the 5 percent to 10 percent premium they already pay foreign employees in China, preferring to compensate them for pollution through perks such as more time off, paid trips to get away or covering the cost of insulating homes, said Fred Schlomann, managing director at human resources firm AIRINC.
A third of European Union Chamber of Commerce companies in China said air pollution had added to human-resource costs as expats made demands such as better pay and health care, as well as air filters, according to Ioana Kraft, general manager of the chamber's Shanghai chapter.
Two-thirds of the companies identified air quality as the top challenge in attracting foreign talent. Some 48 per cent of respondents to a survey this year by the American Chamber of Commerce for Beijing and Northeastern China said they had difficulties recruiting or retaining senior executives in China because of pollution.
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