As we move into 2026, China remains a difficult market for many overseas brands, and this trend looks set to continue in the new year.
On one hand, overseas and especially Western brands are coming face-to-face with a decline of their global brand capital. What once was an easy sell (global brands = savvy and trustworthy) is much harder as Chinese consumers become more discerning and demanding.
On the other hand, more Chinese competitors are entering the market, not simply offering high-quality products at an affordable price. They are also much closer to Chinese consumer mindsets and trends, and can pivot faster, and more effectively in some cases, than overseas competitors.
It’s also worth noting that in response to these pressures, many overseas firms that largely made the switch from expatriate placements to local managers and leaders have not always seen this type of direct hiring localization strategy bear fruit.
I do not subscribe to the arguments in certain overseas business circles that the Chinese market is simply “too hard“ and there’s no way to win. I believe there are indeed different approaches to success, but I feel that in 2026, the answer is global talent. By global talent, I mean people who can operate inside China’s pace and realities while still aligning with overseas HQ expectations.
Global talent (foreign or Chinese), as introduced in the short video below, focuses on talent, managers, and leaders who can live and operate in both Chinese and overseas business and social contexts. It doesn’t mean that you shouldn’t hire locals in China (you definitely should), but too many problems result from insisting on a China-only or HQ-only approach.
Personal Note: I am not a recruiter. These insights come from my many years of working in China, seeing how cultural misunderstadnings impact businesss outcomes and how the right hiring choices are vital to aligning overseas HQ expectations and China market realities.
The checklist below reflects global talent as a third hiring path for overseas HQs looking to hire talent and consultants in China in 2026 and beyond. Some items on the checklist focus more on what to consider before hiring foreign nationals, but many can also be applied to Chinese nationals, too.
After all, nationality isn’t a good hiring strategy. When recruiting key leaders and bridge-builders to connect with the China market, it shouldn’t matter where they’re from. Actual skills, experience, and cross-cultural capabilities are what really make the difference.
Talent That is Already In-Country
First and foremost, unless it can’t be avoided, it’s always best to hire someone who is already based in China, for several reasons.
The most practical reason is due to how long the visa and onboarding process can take. Add that to the longer HQ hiring process, closing out current roles, and relocation, and your local competitors could have easily launched a new product (or more) before you got your new leader on the ground in China.
This is something I’ve seen multiple times throughout my own career when acting as a hiring manager at Chinese tech firms. In an ideal scenario, I might consider bringing in a strong foreign candidate, even one with a background working in China. However, I usually declined overseas hires due to how long it would take and the potential negative impact on ongoing projects.
Another related factor is that someone based in and working in China is much more likely to be in tune with Chinese business culture and society. Aside from language fluency and cultural knowledge, China changes so quickly that being away for a few years can easily put one at a disadvantage.
Talent That Speaks Chinese (Mandarin)
Language is a key requirement I often raise for global talent that will bridge the gap between China and global HQs. While it’s natural to assume that local Chinese talent should be able to communicate in English or the HQ language, it’s just as important for foreign hires and consultants in China to possess solid skills in Chinese.
Think of a game of telephone, where the message gets more garbled and more distorted the more middlemen it goes through. And in China, it’s not just about communication meaning drift, it’s also about how stakeholders protect their own interests.
Local suppliers and partners speak indirectly, or even say yes when no is perceived as inconvenient. Translators and interpreters soften their meaning to avoid perceived insults and protect harmony. Local employees might protect their own interests or only tell their boss or the HQ what they think they want to hear. This muddies the water and prevents the overseas HQ from forming a clear picture and making informed decisions.
This is not about assigning blame, but rather helping overseas HQs and leaders understand the practical realities of language and translation in the China market. By ensuring your bridge between the HQ and China not only speaks Chinese fluently but is also willing to give you the plain truth/translation, you can avoid many more troubles down the road.
Talent That Has Worked Inside Chinese Companies
One of the most overlooked advantages for foreign companies in China is hiring talent (especially foreign talent) that has worked inside Chinese companies.
Foreign companies might initially think it strange to hear that they might want to work with someone who has worked inside Chinese companies. After all, they aren’t Chinese. Shouldn’t they hire someone with experience in foreign companies in China? But this isn’t about familiarity or ideology, it’s about ensuring your key hires understand China’s operating logic.
For foreign businesses in China, most, if not all, of the key competitors will be Chinese. It’s useful to have someone with insight on how competitors operate, which areas can be improved, and who can communicate this clearly to the overseas HQ.
Foreign HQs have no issues operating like a foreign business, but they could very well have potential issues operating like a Chinese one in the domestic China market. Talent with past experience in Chinese competitors can bring many benefits and advantages to foreign firms in China, assuming they are willing and able to make the adjustment to working in a foreign organization and reporting to an overseas HQ.
Talent That Understands Chinese Business Culture
A deeper understanding of Chinese business culture is necessary to manage operations between local Chinese teams and overseas HQs. And they take years to learn and can’t simply be picked up on the job.
Things like making decisions with incomplete information, comfort with ambiguity and rapid pivots, and understanding when rules are flexible versus non-negotiable.
First of all, the speed the Chinese market operates is no joke. Chinese companies simply move faster, with planning cycles measured in days or weeks, not quarters. Companies change direction quickly without formal processes, and teams expect managers to decide, not deliberate. Overseas managers who are not familiar with this operating speed often default to overseas control mechanisms like approval gates, reporting layers, or alignment meetings. But this just slows teams down and erodes local trust.
Second, understanding how to manage local Chinese teams is vital. In many Chinese teams, authority comes from clarity and decisiveness, not from building a consensus. Teams expect direction, not facilitation. Chinese team members rarely give direct feedback, but their dissatisfaction will still lead to negative business results. Overseas managers who don’t understand these intricacies may see their Chinese team members’ work quality drop, or see them leave for Chinese competitors that offer better cultural alignment, as well as better compensation.
Lastly, understanding how to manage relationships with local suppliers and partners is vital. Global talent in China is needed that can help the overseas HQ to prioritize long-term cooperation over transactional contracts, accept frequent renegotiation as conditions change, and undertake relationship management outside of formal meetings.
Talent That Has Experience Outside Expat Centers (e.g., Shanghai)
On LinkedIn and in WeChat groups, I see constant updates from foreigners moving to Shanghai and looking for work there. From one viewpoint, Shanghai is a great opportunity for foreign talent. But the point I would like to raise here is that talent, especially foreign talent that has only worked in Shanghai and other top-tier cities, presents a real risk to foreign companies in the China market – it’s simply too safe.
In China, a common phrase is to “eat bitterness” (吃苦; chī kǔ), which refers to one’s ability to bear hardships. To succeed in China, and to help foreign companies succeed, talent and leaders need to be able to move fast, get things done, and deal with enormous pressures. And it’s a real possibility that the Shanghai and other first-tier city environments might not provide the necessary foundation.
Shanghai is the only city in China where English can come close to functioning as a real working language; the city is much more international, and there is much more legacy expat infrastructure. This means there is much less need or incentive for foreign talent to adapt to the realities that rule the rest of China.
For foreign companies struggling and/or looking to improve in the China market, foreign (or any) talent with Shanghai-only experience should be a red flag, especially if they can’t check off other important items on this list. The China market is difficult, and foreign companies in China need someone who can rise to the challenge.
Talent That Will Challenge Your Assumptions
Lastly, one thing that foreign HQs really need is someone who will not simply make them feel comfortable, will avoid conflicts, and simply focus on getting their paychecks during their tenure.
And to be honest, I’ve seen this happen with both foreign and Chinese talent and leaders. If foreign HQs want to understand why their businesses are not doing better in the Chinese market, they should focus on global talent and leaders who will call out issues and work to make improvements.
But at the same time, even the best talent and leaders will find it hard to drive change if overseas HQs do not provide the required support or pursue needed changes on their own end. After all, in China you need to move fast, and moving fast often requires the overseas HQ to move faster too.
Closing Thoughts
Overseas brands are now facing challenges in China that in some ways mirror those encountered by Chinese companies expanding overseas. Both are discovering that the same old approach to talent isn’t working.
First, both tried sending their own people to the new market or managing things from their HQ. Then, after a more local approach was tried, it was found in many cases to create too large a disconnect between HQ expectations and local execution.
This article aims to present a new path, framed in terms of mutual understanding, support, and alignment. The above checklist is in no way meant to substitute for professional and functional qualifications, nor personal fit for specific leadership roles.
That being said, in light of the complexities of connecting and aligning teams in China and overseas HQs, especially in an area of ever-increasing competitiveness from domestic Chinese companies, the old way is no longer working.
Companies that hope to survive and thrive in the increasingly competitive China market need a new approach to talent – not expat talent, not local talent, but global talent – to connect them to China.
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If you or your organization is navigating China execution or cross-border alignment challenges, I work with teams on an embedded and remote basis. Reach out directly: Sean@SageSightConsulting.com
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