Tag Archives: Doing Business in China

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

01/07/2026 Sean Upton-McLaughlin Leave a comment

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

CULTURE BASICS

What ‘Face’ Means in Chinese Business Culture

10/10/2013 Sean Upton-McLaughlin 51 Comments

Most Westerners who are planning to travel to China for business have almost certainly heard of the concept of “Face,” or Miàn Zi (面子). China’s more hierarchical society certainly places a great deal more emphasis on Face daily life, business, and politics.

However, it can be difficult for Westerners new to China to understand specific rules for Face in China, as well as the different contexts in which it should be used.

For example, what actions will cause someone to gain or lose Face? In what situations should Face be given? And how will Face affect your business and life in China?

In the following article, several of the basic points surrounding Face will be explained, which all Westerners need to be familiar with to succeed in China.

What is Face?

In China and much of Asia, Face represents a person’s reputation and feelings of prestige within multiple spheres, including the workplace, the family, personal friends, and society at large. The concept of Face can be understood more easily by breaking it down into three separate components: the individual view, the community view, and actions.

The Individual View:

This pertains to the amount of prestige individuals feel based on their accomplishments and the amount of respect they feel they are due based on their position and status, such as in a company or at home.

For example, in the modern Chinese economy, there are many opportunities to buy status symbols, which help a person gain prestige. And in China’s hierarchy-focused society, the respect a person is due (or felt due) is determined first by status relative to another person’s, not necessarily by personal achievements.

The Community View:

This pertains to the amount of respect individuals feel necessary to give to someone else based upon that person’s position or status, such as in business, the family unit, or within a group of friends.

For example, status in a Chinese family is divided by very distinct roles, with separate terms of address used for older and younger cousins, aunts, and uncles. Giving the same amount of respect to older and younger aunts or uncles could be viewed as a breach of etiquette.

Actions:

This pertains to the various activities that can cause an individual to gain or lose Face. Based upon one’s position relative to someone else, several different actions can be employed to either cause a loss or gain of Face.

In some cases, these actions might occur unintentionally or instead be used as a tactic to achieve a specific result. For example, giving someone Face (e.g., more than they might deserve) can be used to build relationships and influence decisions. Causing someone to lose Face could be used to reinforce one’s own authority and status, or pressure someone toward a desired action, such as quitting their job or fulfilling a promise.

Face and Business in China

Face can be very visible in the Chinese business environment and play an important role in inter- and intra-company communication, business negotiations, and the development and maintenance of relationships. In China, company hierarchy is much more important than in many Western countries.

Not only are leaders and managers placed on a higher pedestal, but the distinction between different levels of management is much clearer and more important. Chinese leaders and managers usually expect respect from their subordinates and, in some cases, expect to be obeyed without question, no matter the rationality or fairness behind a request.

Not obeying “the will” of a Chinese leader or manager does not give them the perceived necessary prestige they (and others) feel is deserved. Indeed, survival in a Chinese company depends on knowing one’s place, and Face plays a very important role in facilitating that function.

When Chinese businesspeople build relationships with one another, Face is very important. On one hand, relationships in China are built and maintained by giving Face and increasing the prestige of one’s friends and contacts.

With two business people of the same relative position or status, Face is often given and received equally and is the cement that holds a relationship together.

“To me, your “face” is your position and standing in the eyes of others, and it also has to do with the degree of respect you receive. Face can also be saved up over time and used to accomplish things later on. If you drove a fashionable or luxurious car to attend a friend’s party, then the majority of your friends would feel that you had face. Also, if you can achieve something through your personal contacts that others cannot through normal channels, you would also be thought to have face. You can gain face if you are praised by your boss, or if you accomplish a difficult task at work. However, if you greet others warmly at social events, but are met only with indifference, then you would lose face. Questioning someone’s ideas or opinion in a public setting would cause that person to lose face.”

– James Tan, Sales Manager

On the other hand, when a client relationship is established in China, the client more often than not receives more Face in the early stages of a relationship from the “seller.” Face must be given to the client to make them believe that the seller is worthy of their money and time. Sometimes giving Face to a contact entails simply words and compliments, though sometimes gifts are required and invitations to dinners, entertainment, or other social events.

To the Chinese, there is a natural order in society as well as business, and if one is unwilling or unable to show the proper amount of Face to those who feel they deserve it, then one will likely be judged to not have good character. This has the potential to wreck business deals and sour relationships, so with regard to the issue of Face, most Chinese businesspeople tread with care.

Examples of Gaining & Losing Face

Even after understanding the basic mechanics and uses of Face, it can be difficult to understand how the concept actually works in practice. Below, I have listed several specific examples of how giving and losing Face could play out in China.

Management: A Chinese company director is leading a team of researchers to complete a consulting project for a client. At the project’s end, the director’s subordinates successfully present their findings and reference and praise their superior’s role in managing and leading the project. The actions of the report being completed successfully, as well as being praised in front of the client, give Face to the director.

Family: A Chinese mother makes many efforts to give her child the opportunity for a good education, both through financial and emotional support. The result is that the child is accepted at a prestigious foreign university. Not only do the parents feel proud of their child’s achievements, but they also feel that they have gained Face through the child’s achievement.

Marriage: A young Chinese man is trying to find a woman to marry, but has met with no success. After reaching his early thirties, all of his close friends have already married, and some even have children. In light of his failure to marry when his family, friends, and society expect him to, he feels a significant internal loss of Face. In addition, the young man’s friends may look down on him due to his failure to marry, and hence give him less Face through their actions and words during social gatherings. These actions would then further compound the loss of Face.

Employment: A young Chinese woman is stuck in a stressful job with an abusive manager at a local Chinese company. Through no fault of her own, she is constantly blamed for her manager’s failings and shortsightedness. Through being berated daily in front of her coworkers, the young woman continuously feels she is losing Face. In the end, she feels she has lost so much Face that she cannot bear to face her coworkers and decides to quit her job.

Advice for Overseas Professionals

While Face sounds complicated – and it is – there’s no need to despair. First of all, foreigners are not always expected to adhere to the same exacting standards of respect and prestige as locals in China are.

The influx of Western culture into many of the larger Chinese coastal cities (and other more developed areas), along with greater numbers of local Chinese with experience dealing with Westerners, has led to more flexible interpretations of business and social etiquette.

Also, Chinese culture in and of itself has both liberal and conservative interpretations, even before China’s modernization. Just as there are highly conservative Chinese managers, executives, and leaders who demand respect be paid to them at all times, there are also Chinese who have a less formal attitude and focus on getting results over respect.

However, when the issue of Face cannot be avoided, several things should be kept in mind:

Whenever someone outranks you or is older than you, it’s probably a good time to show them more respect.
Don’t forget to give Face when you want something from someone in China (e.g., a business deal or a favor).
While giving face is always important, don’t forget to develop the relationship over the long-term.
Giving Face will always be appreciated, even from Chinese people who have a lot of experience interacting with Westerners. Face is deeply rooted in Chinese society and mindset, and its importance will not fade over time.

While it’s true that some Westerners protest that they won’t “play the game” while in China, it is important to remember that when you are in someone’s house, it’s only polite to play by their rules, or you may be asked to leave. While overseas professionals certainly might be given more leeway when it comes to the Chinese way of doing things

At the very least, small gestures of respect are easy and go a long way toward demonstrating that you understand the importance of Face (and are willing to make an effort to understand Chinese culture) and that you are committed to a long-term relationship with the Chinese. Something as simple as this can be a crucial factor that can land important business deals and lead to rewarding friendships that will last a lifetime.

Final Note for 2026

This article was originally written in 2013, and much time has passed since then, both in terms of my own career development and experience in China, as well as China’s development, both economically and socially.

While the above article can still act as a strong foundation to help overseas professionals and visitors understand the nuances of respect and relationships in China, it should also be noted that China is not a monolith. Cultural practices and social expectations can vary by province, industry, educational background, and personal style. Many Chinese professionals and managers are also more experienced with overseas management and working styles.

In using this article as a guide for a career in China, or merely a trip here, it is best to use this article as a base foundation, remembering to observe the behavior and preferences of those around you and adapt how you employ Face and respect, depending on the person and situation. Best of luck!