Background:

When DeepSeek’s code sparked heated discussion at the Stanford AI Forum, in a co-working space in Silicon Valley, Chinese AI companies going overseas were experiencing another kind of reality:

The Colorado court had just imposed a huge fine on a Chinese company for illegally asking about salary history.

The resume submission rate from MIT’s Department of Computer Science and Artificial Intelligence graduates to Chinese companies was less than one-seventh of that to Google.

An AI unicorn faced hiring difficulties and employee departures due to a Glassdoor rating of 2.8.

There is already consensus in the industry about the competition in AI: talent comes first, data second, and computing power third. Talent has become the core resource in the global showdown of AI enterprises. With the structural upgrade of AI research, China has risen to become the largest exporter of AI talent, but the United States, which owns 60% of the world’s top AI institutions and 42% of leading AI researchers, still holds a clear advantage in talent quality and research capacity. Going overseas to the U.S. means not only business challenges brought about by differences in the commercial environment, but also a battle for top talent. Behind the 37% failure rate of Chinese enterprises in North America lies the deadly grip of a fatal formula:

Talent war failure rate = Cultural discount coefficient × Compliance risk index ÷ Organizational evolution speed

This article reveals three fatal misconceptions in building localized teams in the U.S., and summarizes solutions from more than 100 real cases served, to illuminate your new voyage of going overseas in 2025.

Trust Crisis Caused by Lack of Employer Branding

"I'm sorry, I don’t work with Chinese companies." When Zhang Min, HR Director of a smart manufacturing enterprise, received this reply for the 23rd time on LinkedIn, she realized the seriousness of the problem. This is not an isolated case — according to a Glassdoor survey, 62% of American job seekers would actively avoid Chinese enterprises that “lack local recognition.” The reasons are nothing more than the following three points:

Cultural cognition gap: The U.S. workplace widely holds the stereotype that “Chinese companies = 996 culture export.”
Compliance risk concerns: 68% of respondents worry about the data security compliance of Chinese companies (data source: Pew Research Center).
Career development doubts: A lack of visible success stories and promotion paths.

According to Fortune magazine, local U.S. employees of a well-known Chinese high-tech manufacturing enterprise expressed that the company was too rigid, and its shift system and obedience culture made it difficult for them to adapt. The U.S. branch of this enterprise had a total of 91 comments, with a recognition rate of only 27%, meaning only one-third of people would recommend working there. Commenters said the company’s rigid culture would alienate U.S. employees and job seekers, making it more difficult to recruit enough staff in the U.S.

Similarly, another Chinese internet technology giant applied its HR management principles — which worked smoothly in China — to its Palo Alto office in California, but faced resistance and rejection from employees. Glassdoor collected 213 feedback questionnaires on the company’s employer rating, including many high scores of 4–5. However, if only U.S. employee evaluations were retained, the average score immediately dropped to 3.2. Complaints about lack of individual autonomy were very common, and employees even alleged that the company used “illegal means to motivate employees.”

Solutions:

Global self-positioning: In the process of globalization, precise and appropriate self-positioning and a clever brand strategy layout are extremely critical. Companies can adopt a “dual-brand strategy,” that is, while retaining the parent brand, register an independently operated local brand (such as the differentiated operation of Douyin and TikTok).
Build workplace reputation: Encourage current employees to share positive and authentic work experiences on career social platforms with wide influence such as Glassdoor and LinkedIn. A Chinese AI company, through this measure, raised its employer rating from 2.8 to 4.1, laying a solid foundation for talent recruitment and development.
Campus penetration: Every fall, tech giants such as Google and Apple gather at Stanford, MIT, Caltech, and other prestigious schools to start their “talent-grabbing campaigns.” To win high-potential graduates, actively participate in top universities’ career fairs, showcasing corporate strength and prospects to attract outstanding talent.

Sailglobal Expert Advice:

When building employer branding overseas, companies are advised to adopt a progressive model of “diagnosis – implantation – growth.” In the early stage, focus on cultural decoding and compliance infrastructure; in the middle stage, build a content communication system; in the long term, cultivate the mindset of employee brand ambassadors.

Compliance Traps in Salary Negotiation

In 2023, a Chinese e-commerce company in Colorado was fined tens of thousands of dollars for asking about a candidate’s salary history during an interview. This is by no means accidental — currently, 13 U.S. states, including California and New York, have implemented the Pay Transparency Law, and violators face fines of up to 2% of annual revenue. Chinese-style recruitment does not fit in the U.S.; without understanding these rules, companies run a high risk of triggering compliance penalties.

Key Rules:

Prohibition of asking about salary history (explicitly stipulated in 8 states including Rhode Island)
Mandatory disclosure of salary ranges (applicable to enterprises with more than 15 employees)
Equal pay requirements (including the entire compensation package such as stock options)

On one hand, it is necessary to avoid compliance pitfalls in salary discussions; on the other, it is important to design attractive compensation systems. Particularly in the AI field, salaries are much higher than in the general computer industry. Since 2021, AI practitioner salaries have grown by 15%–18%.

Practical Strategies:

Benchmarking by position (taking California software engineers as an example):
Authoritative report: The U.S. Bureau of Labor Statistics (BLS) shows that in 2024, the median annual salary for software engineers in California was $148,000.
Recruitment platforms: Glassdoor shows that engineer positions at big companies like Amazon and Google pay $180,000–$220,000 annually.
Industry surveys: Startups, in order to grab talent, usually offer 10%–15% higher salaries than big companies.
Differentiated pricing strategy:
Core positions (such as CTO, VP of Sales): Position at the top 25% of the market. For example, when recruiting new energy engineers in Texas, if the market average is $120,000, then offer $140,000 + options.
General positions (such as accounting, customer service): Position at the market median, but add flexible benefits (such as remote work rights).
Special skill positions (such as AI algorithms): Directly benchmark Silicon Valley giants; when necessary, use “signing bonuses” (e.g., a one-time payment of $30,000).
Practical toolkit:
Compensation database usage:
comprehensive.io (covers real-time data from 700+ tech companies)
levels.fyi (can query compensation at leading Silicon Valley firms, accurate down to Apple L5 engineer pay structure)
U.S. Bureau of Labor Statistics O*NET database (official job salary benchmarks)
Establish dynamic adjustment mechanisms: Adjust salary coefficients dynamically based on region, position, and talent competition. A Chinese drone company reduced its California team’s turnover rate from 41% to 15% by setting “regional salary coefficients.”
High-pay philosophy + incentive binding: For example, OpenAI retains top talent through a combination of “short-term flexible incentives” + “long-term interest binding”; Google designs a package of “signing bonuses + restricted stock + performance bonuses”; Meta builds a comprehensive total rewards system, including high salary, stock options, performance bonuses, health insurance, flexible work, and paid leave.

Sailglobal Expert Advice:

Compensation design and management are key links in attracting and retaining talent. Before going overseas, conduct local salary research, labor policy and social welfare consultation, and enterprise cost analysis. U.S. laws and salary levels vary by region and are constantly changing, so cooperation with professional agencies is recommended to ensure information is timely and effective.

The Invisible Career “Ceiling”

Hiring does not mean retention. The Silicon Valley team of a Chinese tech company lost all eight of its local middle managers within 18 months.

In most parts of the U.S., the employment system follows the “at-will” principle of free mutual consent. Simply put, employment can be terminated at any time. In 2023, California passed a law banning nearly all non-compete agreements and authorizing employees to sue employers who impose or attempt to impose non-compete agreements. Retaining top talent has become a key challenge for overseas enterprises.

Poor promotion opportunities and limited growth are the main reasons local U.S. employees leave Chinese enterprises. Tracking research by the U.S. HR intelligence platform Revelio Labs shows: compared with U.S. employees employed by domestic companies, U.S. employees working for foreign companies are promoted fewer times and later. In foreign enterprises in the U.S., local employees need on average 2.7 years longer than headquarters expatriates to be promoted to director level.

Revelio Labs also found that in the senior positions of U.S. branches, the proportion of employees from the company’s home country is too high, and senior executives are more often transferred from overseas headquarters. This limits the promotion opportunities of local U.S. employees, thereby affecting their work enthusiasm and loyalty.

The top-down management style of Chinese enterprises is one of the most significant cultural differences compared with American companies. In the United States, companies tend to adopt a flat management model, encouraging employees to actively participate in the decision-making process, with frontline and middle-level employees having more opportunities to express their ideas and influence company decisions. In the survey, foreign companies scored significantly lower than U.S. local companies in the two categories of “Culture and Values” and “Senior Management.” For example, local frontline employees in the U.S. are accustomed to an open and direct communication atmosphere. When facing the relatively centralized and hierarchical management style of foreign companies, they may feel that their opinions are not valued, promotion opportunities are limited, which frustrates their work enthusiasm and reduces their sense of identity with the company. Meanwhile, senior managers of foreign companies, due to unfamiliarity with U.S. workplace culture and employee expectations, may trigger conflicts with frontline and middle-level employees during the decision-making and management process.

Establishing corporate culture and team trust in a new environment is by no means easy. sailglobal has a strong overseas talent expert team and consulting network, with extensive coverage in 150+ countries and regions and 10 years of overseas human resources service experience, and has derived a golden formula for cultural integration: (Delegation of decision-making power × Career path visibility) ÷ Cultural conflict = Team stability

Three-step implementation method:

Boldly appoint local and international executives: for example, the multinational e-commerce giant SHEIN once hired former Activision Blizzard Chief Compliance Officer Frances Townsend as a senior advisor. Xiaomi has successively hired former Google Global Vice President Hugo Barra and McKinsey executive Manu Kumar Jain. International executives play an important role in expanding the global vision of enterprises and promoting cross-cultural integration.
Build a dual-track promotion system: provide employees with a clear career advancement path. For example, an AI company’s team in the U.S. piloted a clear dual-track promotion system, where the top 20% of employees in annual performance rankings have the opportunity to participate in promotion. The promotion rules are simple and transparent, and are not affected by nationality. Professional track: engineers can be promoted to Fellow level (benchmarking Google L10), Management track: set clear milestone assessments (such as establishing a regional director position for every US$5 million GMV)
Implement a "shadow board of directors" plan: respect and trust local U.S. employees, invite local key staff to participate in strategic meetings, actively listen to and absorb their rational suggestions, and provide timely feedback on the basis and process of decision-making to enhance decision-making transparency. Even if there are some disagreements in communication, it is essential to insist on sitting down for sincere dialogue, as this is the best opportunity to understand each other’s positions and build trust.

sailglobal expert advice:

Promote cultural integration through institutional innovation, continuously advance talent localization, break the promotion ceiling for local employees, and build a three-layer protective net of “institutional guarantee–emotional connection–value co-existence.”

Conclusion

Going abroad is not a geographical relocation, but a reconstruction of organizational genes. Establishing a team in the U.S. is not only for more efficiently developing U.S. business, but also for connecting with international talent and building the enterprise’s global talent competitiveness.

sailglobal provides professional, compliant, and AI-driven global human resource management services, covering global human resource strategy consulting, overseas employment management, overseas one-stop payroll design, calculation, distribution, and other services, and has a comprehensive and compliant human resource management platform. It not only provides: a “bulletproof vest” for global compliance, a “wall breaker” for cultural integration, and an “accelerator” for organizational evolution, but is also committed to building a resonance ecosystem of “talent–organization–strategy.”

Through our services, clients gain not only an excellent North American team but also a self-evolving talent ecosystem.

Data sources:

The Global AI Talent Tracker 2.0 (MacroPolo-Paulson Institute)

2024 Enterprise Going Global Human Resource Service Guide (HRflag)

Employer Rating Report: U.S. Branches of Foreign Companies vs. U.S. Local Companies (Revelio Labs)

AI Talent Report (CEA, U.S. Council of Economic Advisers)

The AI competition is escalating, how to break down the survival rules of localized team building when going to the United States