Tag Archives: China Operations

BUSINESS IN CHINA

Trust Isn’t Universal: Where China-Global Companies Get It Wrong

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Trust is one of the most important aspects of China-Global business. It doesn’t matter whether you’re selling, operating, or partnering in a new market: success often depends on ensuring that the customer, team, or partner has a reason to trust you over the next best option. And it’s very easy to get wrong.

One of the challenges I often see in China-Global business is that companies, executives, and teams on both sides aren’t optimizing their actions to build trust in their new market. Instead, they’re often just following actions that have traditionally built trust in their home market.

In these cases, no one at the HQ questions the type of trust they need to build, or even whether they think of “trust” as a core problem. They simply focus on actions they assume to be correct and wonder why partners, customers, and employees continue to leave.

Building Trust Isn’t Universal

The key point to remember is that trust, and the reasons people and businesses extend it, are not universal. The actions that build trust vary based on the market, consumer, business, and need. More importantly, businesses change and evolve, as do their customers. Even if a business hits upon a winning solution for a given market, there’s no guarantee that it will continue to deliver results several years into the future.

Here are several examples of ways that companies with good intentions get trust-building wrong in new markets:

Global Brands Struggling in China: Many overseas brands have been struggling in China in recent years. Not because China is hard, but because they have failed to adapt to a market that no longer reveres overseas brands without question, and failed to account for the rise of local competitors who move faster than them and have better insights into local consumers.

This has resulted in overseas brands moving too slowly and offering categories that Chinese consumers were not interested in, or that did not provide value comparable to what Chinese competitors already offered. In short, they were expecting their global brand and foreign roots to build trust, even though in many industries it no longer matters in the ways that it used to.

Chinese OEMs Expanding Overseas: Chinese OEMs are very good at making high-quality products and tailoring them to exact buyer needs. I’ve been in the room in meetings with overseas buyers and have witnessed their focus and attention to detail.

The problem comes when many of these OEMs decide to expand overseas under their own brand name, and still act like trust needs to be built in the same ways it was before. This helps explain why so many Chinese OEMs continue to focus on product specs and have had trouble connecting and building trust with consumers.

China-Global Partnerships: I previously gave a presentation at a Chamber of Commerce event on cross-border business failures between Chinese and Latin American companies. One core issue that kept surfacing was how quickly the Chinese side expected projects to progress and how quickly they expected profits to start coming in.

When results didn’t come quickly, the Chinese side often pulled out, and the local partners and governments had never taken trust and expectations into account before signing the deal.

China-Global Leaders: You Need an Engine

If these failure points for building trust are so obvious, why don’t more companies take them into account when the cost of not doing so is the loss of revenue, market share, partnerships, and core employees?

The answer is that companies are complex systems, with built-in processes, culture, and incentives, all of which resist change when attacked from a singular direction. Companies need a combined “Engine” to build trust in new markets, even when it runs against conventional corporate operational patterns.

Here are my suggestions, based on fifteen years bridging the trust, collaboration, and operations gap between Chinese and overseas companies:

Diagnosis: The first step is a clear diagnosis, conducted either by internal or external experts, with the experience and ability to look beyond what’s considered normal or “right” internally, to focus on what the target customer, partner, or employee requires to build trust, as well as the existing internal actions and incentives that run counter to it.

Specialized HQ Teams: Organizations often change very slowly, which is why it can be effective to create specialized teams whose job it is to build trust in new markets and with customers and partners in those markets, the way new markets need.

Teams with incentives directly tied to the needs of customers and partners in overseas markets are often the only ones willing to make needed changes. And teams need to be based, in full or in part, at the HQ, because that’s where power rests, and that’s where change needs to begin.

Better aligned processes and incentives: Lastly, it is also necessary, in the longer run, to adjust HQ-wide processes to better provide support to overseas teams, partners, and employees. While specialized teams can provide effective short-term momentum and problem resolution, what they are able to achieve still depends on HQ resources and processes.

Chinese HQs that are unable to slow down when it’s needed will likely fail to build trust, and the same applies to overseas HQs whose slow processes and approvals can’t keep up with the needs of Chinese consumers and businesses.

Without an engine that aligns your entire HQ toward building trust for new customers, partnerships, and internal operations, it’s all too easy to end up following the wrong signals, which will undermine trust if they don’t destroy it completely, and leave openings for local competitors to leap ahead.

If you’re interested in thoughtful perspectives on China, cross-border work, and how culture, incentives, and organizations shape real outcomes, you’re welcome to subscribe to China Culture Corner and receive future posts by email.

I also share related ideas and longer-form video commentary on LinkedIn and YouTube, and post updates across the channels linked above.

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

BUSINESS IN CHINA, WORK IN CHINA

What ‘On the Ground in China’ Actually Means, and Why It Matters

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Many cross-border business professionals emphasize being “on the ground” in China, but what does this term mean, and how does it really help overseas companies in the China market?

After all, an overseas tourist or student in Shanghai is technically on the ground in China. So is an overseas professional who speaks the local language and has been working in the country for 30 years.

The key is understanding the degrees in between, and how different types of on-the-ground experience provide different benefits to overseas companies in the China market.

Based on my own 15 years of experience operating in China, I’ve mapped out five distinct levels of being ‘on the ground.’ In the following sections, I’ll break down what each level provides and where its limitations lie.

Level 1 – Viewing China from a Distance

When overseas HQs don’t visit China or have someone trusted on the ground, it can be hard to know what to believe.

While geopolitics and slanted news headlines can provide misinformation and lead to knee-jerk reactions, it is more common for differences in language, culture, and business practices to take a higher toll.

When dealing with China from a distance, overseas HQs can’t tell what information is being filtered, what consumers, partners, and clients really expect, and how best to align operations across markets.

It’s a risky proposition to be in, especially amid geopolitical uncertainty and the increasing competitiveness of local competitors.

Level 2 – Visiting Short Term

Short-term visits can be a marked improvement on having no presence in the China market, whether they be business trips, China innovation tours, or regular travel.

Not only do short visits allow overseas professionals to see China’s development up close and firsthand, but they also help false assumptions fall away.

The scale, pace, and context of China become more obvious, which is hard to grasp from overseas news headlines or social media alone. Even brief exposure is better than forming opinions entirely from a distance.

It’s also much easier to do business and build relationships with many Chinese professionals and companies face-to-face. Doors that might be closed over a Zoom call could open during a multi-week visit.

That being said, short visits don’t do all that much to further your understanding of China, or your ability to communicate effectively with Chinese professionals and companies.

It’s also common for Chinese professionals, both those who work for your China office as well as local companies, to not always be able to share the actual situation and challenges right away. A certain amount of trust and camaraderie needs to exist first.

So, short visits are certainly an improvement over handling everything online or via an agent you don’t really know. But they also can’t replace having a more solid and trusted presence in the market.

Level 3 – Living in China

Living in China long-term is a clear step up when it comes to understanding China, how Chinese people think, and the cadence and rhythm of daily life.

Daily routines replace novelty, and overseas professionals experience public spaces, services, friction, and convenience as part of normal life, rather than observing them from the outside.

This shift from observation to participation matters. When systems become part of your daily rhythm, you stop reacting to isolated moments and begin noticing patterns.

Certain behaviors stop feeling surprising. Others become more noticeable precisely because they repeat across situations, industries, and cities.

Professionals begin to internalize how decisions are made, how trust is built, and how expectations are signaled indirectly. They begin to sense when something is unsaid but understood. Context becomes intuitive rather than intellectual.

At the same time, this level still has limits. Even after years of living in China, if you are not working inside organizations, much of what is understood remains external.

You may understand consumer behavior, service expectations, and social norms, but not yet the internal pressures, tradeoffs, and incentives shaping business execution.

Even so, this stage reshapes perception in meaningful ways. It reduces overconfidence, challenges assumptions imported from overseas, and begins to narrow the gap between surface impressions and lived reality.

Level 4 – Working in China

Working in China, specifically within an organization, adds another layer of learning, as well as complexity.

At this level, it makes less of a difference whether a professional works for a Chinese company or an overseas one. After all, most employees will be Chinese, speak Chinese as their native tongue, and have their behavior shaped by Chinese culture and society.

In a professional environment, overseas talent will have the opportunity to begin understanding internal and external incentives, tradeoffs, internal pressures, and constraints. All in a Chinese cultural context.

They can also begin to see how certain overseas methods and ideas do not always fully land in the China market, and why local practices can make more sense.

And they can observe how different speeds and expectations, as well as what’s left unsaid, can lead to increasingly unaligned efforts between overseas HQs and local offices.

At this stage, it becomes much harder to assume intent equals outcome, or that global best practices automatically translate to the China market.

This leads to what matters most — overseas professionals actively looking for the right balance between global needs and local realities.

Level 5 – Deep Inside Chinese Organizations

This last level, based on my own experience in China, is the most complex. It is also more difficult to obtain proficiency in.

When overseas professionals work within Chinese-owned and managed organizations, they find that things are much more opaque and that they often have less institutional support than they would in an overseas-run environment.

First of all, it is not uncommon for most employees to only speak Chinese, and for company documents, communication platforms, and systems to be completely in the Chinese language.

To be truly able to manage across teams and understand nuance, overseas professionals will find that Chinese language skills are a requirement.

Second, while overseas employees will likely still be treated warmly inside Chinese organizations, they often will not experience the same level of deference as they might working inside an overseas company in China, especially one from their home country.

This requires the capabilities to bargain and convince colleagues and managers to accept new ideas, in an environment where the overseas approach is not the status quo.

Third, they will have to deal with internal vs. external trust dynamics, siloed organizational structures, opaque decisions from leadership, and less freedom to share their own ideas.

This requires developing the capabilities to read the room in a Chinese context, respect Face, protect internal relationships, and understand what is not being said.

Despite the difficulties, professionals with these capabilities are genuinely rare and disproportionately valuable to overseas companies navigating the China market.

They can help overseas HQs to better understand the China market, their own operations, and challenges in the country, and how to better align and execute together.

What This Means for Overseas Leaders

The most important thing overseas HQs and executives should understand is that, despite China’s increasing internationalization, their Chinese staff and partners are still operating within a Chinese cultural and organizational context. That shapes everything.

When overseas HQ teams visit China operations, they rarely get a full picture of what’s actually happening. This isn’t because Chinese teams are being evasive. It’s structural.

The cultural instinct to protect relationships, avoid escalating problems prematurely, and present things smoothly to visiting leadership means that candid feedback rarely travels upward naturally, even in offices run by overseas professionals.

The same applies in reverse. When Chinese companies partner with overseas organizations, adapting to overseas operational expectations doesn’t happen automatically, regardless of how much both sides want the partnership to work.

This is where someone with deep on-the-ground experience, but who can also step back and communicate clearly to overseas leadership, becomes genuinely valuable. Not just someone embedded in China, but someone who understands both sides of the gap well enough to close it.

That gap is almost always wider than overseas HQs realize. And closing it starts with knowing it exists.

If you’re interested in thoughtful perspectives on China, cross-border work, and how culture, incentives, and organizations shape real outcomes, you’re welcome to subscribe to China Culture Corner and receive future posts by email.

I also share related ideas and longer-form video commentary on LinkedIn and YouTube, and post updates across the channels linked above.

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

BUSINESS IN CHINA, WORK IN CHINA

Hiring for China in 2026: A Reality-Based Checklist `

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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.

If you’re interested in thoughtful perspectives on China, cross-border work, and how culture, incentives, and organizations shape real outcomes, you’re welcome to subscribe to China Culture Corner and receive future posts by email.

I also share related ideas and longer-form video commentary on LinkedIn and YouTube, and post updates across the channels linked above.

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