Success in China: Local Autonomy & Integration

‘Several years ago, to qualify as a bidder on state-owned projects depended on how much state- or foreign ownership the bidder had. Now, China is moving to a sanction-free economy, and some industries are on a timetable to be free from foreign suppliers. For example, the top banks must have 100% Chinese-owned companies provide their IT infrastructure, including IP, chips, operating systems, hardware, software – everything.’

‘I am trusted to know what needs to be done here. I have a lot of flexibility. To be successful in China requires having strong local management. When I started, my mission was to make our firm “the most local of the internationals” and “the most international of the locals.”’

‘We used to have two teams – one for local clients and the other for MNCs. Now, multinational clients are so localised that we don’t need two teams. Domestic firms and MNCs have different expectations, but I prefer to have one team. Even if the skills required differ, splitting the company in two wasn’t healthy.’

It can be hard to let go. But that is precisely what successful MNCs in China have done. Operating autonomously from HQ has become commonplace for successful foreign firms in China, but how they approach localisation differs significantly. As MNCs balance global standards with local nuances, they confront the unique challenges of China’s market: from navigating its distinct tech platforms and regulations, to maintaining cost-competitiveness against fierce local players.