Why Fewer Expats Are Leading Multinationals in China

A story recently shared on Chinese social media struck a chord with many professionals, gaining tens of thousands of views. 

The post described a foreign executive announcing his departure after ten years in Shanghai, marking the end of an era for many who came to China during its rapid rise.

In the comments, readers reflected on the changing times: "Fewer expats are staying long term."

"Foreign firms don't feel foreign anymore." "Companies are becoming more local, and that's progress."

These sentiments capture a quiet but visible transformation in China's business landscape, the gradual decline of foreign leadership in multinational offices that were once dominated by expatriates.

From Expat Dominance to Local Leadership

Over the past decade, global corporations in China have undergone a deep structural shift. Where international managers once filled most senior positions, Chinese professionals now increasingly lead.

For example, an American consumer goods company that employed six foreign vice presidents out of nine in 2014 now has only one. 

A major European automaker that once operated with a largely overseas leadership team is today managed almost entirely by local executives. 

Across industries including luxury, automotive, and technology, local first has become the new norm.

Recruiters say this trend is no mystery. 

"Headquarters used to value global experience," one headhunter explained. "Now they focus on people who truly understand the local market and can move fast, qualities Chinese managers naturally bring."

The Value of Local Insight

For many expatriates who arrived during China's boom years, the environment has changed dramatically. 

One longtime foreign manager noted, "We used to bring global expertise to China. Now, Chinese teams are teaching headquarters how to operate."

This shift reflects a generation of local professionals who blend international education, strong language skills, and deep knowledge of domestic consumers. Increasingly, they are not just executing global strategies, they are shaping them.

Strategy, Economics, and Adaptation

The move toward local leadership is both practical and strategic. 

Expatriate packages, including housing and schooling allowances, can cost several times more than hiring domestically. 

At the same time, local managers are often better equipped to handle regulatory shifts, cultural nuances, and fast changing market conditions.

As one HR director from a European firm put it, "A decade ago, we brought people in to build systems. 

Now, those systems are in place, and local leaders are expanding them further."

Business culture has evolved as well. 

Meetings once held in English are now conducted mainly in Mandarin. 

Decision making has become faster and more grounded in local realities. 

Many multinational subsidiaries in China now operate much like Chinese companies that happen to have foreign parent firms.

A New Balance Ahead

As more foreign executives move on and Chinese leaders take charge, the nature of global business in China continues to evolve. 

The country's market remains essential, but the people driving it are increasingly homegrown.

Still, this transition raises a question for international firms: as operations localize, will global perspectives fade? 

Can companies remain globally connected if their leadership becomes predominantly domestic?

One comment on the viral post summed it up best:
"Change is inevitable, but what matters is who keeps the bridges open."

Source: Baidu