On March 12, the 24th session of the Asia-Pacific Human Resources Service “Elite Class,” organized by the Asia-Pacific Talent Service Research Institute, officially kicked off in Qingdao. The three-day event attracted 125 participants from 66 organizations across 19 provinces nationwide. SailGlobal, a one-stop HR service platform for Chinese enterprises going global, was invited to attend, delivering a high-level session on overseas expansion strategies to the attendees.

At the event, SailGlobal’s CHO and Head of Consulting & Training, Huang Yuanming, provided an in-depth analysis of the background, trends, and challenges facing Chinese enterprises going global.

Overseas expansion has become a hot topic for Chinese companies in recent years. Motivated by reasons such as market expansion, industrial upgrading, technology and production capacity enhancement, higher profits, cost reduction, trade restriction avoidance, tariff benefits, and access to talent and technology, Chinese enterprises have surged abroad. In 2023, China’s outbound foreign direct investment (FDI) reached USD 177.29 billion, ranking third globally. By the end of 2023, 31,000 domestic investors had established 48,000 overseas FDI enterprises across 189 countries and regions.

SailGlobal has systematically analyzed the outbound trends of Chinese enterprises. Data show that companies across all sectors are going global, with particularly active expansion in cross-border e-commerce, advanced manufacturing, and new energy industries. The robust investment growth has led to a rapid increase in overseas employees. By the end of 2023, Chinese enterprises employed 4.289 million staff abroad, of which 2.57 million were local hires, accounting for 60%. The surge in overseas investment has intensified Chinese enterprises’ demand for global talent.

Behind this strong demand lies not only recruitment needs but also challenges in attracting local talent, ensuring compliance, navigating cultural differences, and managing teams effectively. Managing personnel overseas has become a pressing challenge for all expanding enterprises and presents a structural “blue ocean” opportunity for Chinese HR firms. SailGlobal emphasizes: “Going global is the inevitable path for Chinese HR companies to become world-class institutions.”

Under the new international landscape, competitive and cooperative dynamics have become increasingly prominent. With the rise of developing countries, competition among major powers has intensified, prompting deep adjustments in global industries and supply chains.

SailGlobal has conducted a systematic analysis of economic policies worldwide. Developed countries are promoting “reshoring, nearshoring, and friendshoring” strategies, compelling multinational companies to explore “China +1” supply chain solutions. Meanwhile, various economies have launched policies to attract industrial transfers, prompting Chinese enterprises to accelerate their overseas market expansion.

Based on its in-depth study of Chinese companies going global, SailGlobal observes that overseas expansion in recent years has fundamentally changed compared with previous waves. Geographically, expansion has shifted from primarily Europe and the U.S. to emerging markets such as Southeast Asia, the Middle East, Latin America, and Africa. Industry focus has broadened from a few manufacturing sectors to include new energy, automotive, infrastructure, and cross-border e-commerce. Talent recruitment has evolved from focusing solely on technical professionals to encompassing cross-cultural management capabilities. The motivations for going global have also diversified—from forward-looking strategic planning to pressures from domestic competition, corporate growth needs, and supportive policies.

Different enterprises face similar challenges when going global. SailGlobal highlights several core issues that most Chinese companies encounter during overseas expansion:

1. Recruitment Challenges:

Lack of understanding of local talent pools, distribution, salary levels, and effective recruitment channels.
Difficulty defining accurate talent profiles, reaching candidates effectively, and posting attractive job openings.

2. Overseas Compliance and Employment Issues:

Insufficient in-house HR management capabilities abroad.
Limited familiarity with local labor laws and compliance requirements.
Inability to directly handle day-to-day HR operations overseas, including payroll, social security, taxes, and employee relations.

3. Cross-Border Payment Issues:

Cross-border payments from China involve complex procedures and strict controls.
Managing payments across multiple countries increases time and effort.

4. Visa and Work Authorization:

Companies may lack an overseas entity or have an entity without proper qualifications to process work visas for expatriates.
Lack of expertise in visa regulations and processes prevents legally compliant employee deployment.

These challenges indicate that the overseas HR industry must provide more than a single service—it requires a one-stop solution. Changing demands are driving the overseas HR sector to evolve continuously in order to succeed in the global market.

SailGlobal’s Experience and Regional Insights:

In mature markets like Europe and the U.S., Chinese enterprises increasingly seek brand upgrades and localized operations, especially in tech and new energy sectors, creating demand for professional HR support. Local giants dominate the talent market, but Chinese HR firms have differentiated advantages in flexible employment, EOR (Employer of Record), and cross-cultural management.
In emerging markets such as Southeast Asia, the Middle East, and Africa, abundant labor and strong demand in manufacturing and services resemble China 20 years ago. Competition is growing, but local talent pools are still developing, leaving opportunities for HR service providers.

Three-Step Approach for HR Firms Going Global (as suggested by SailGlobal):

Understand the overseas landscape: Evaluate business environments, competitive dynamics, laws and regulations, and risks in target countries.
Maintain strategic focus: Commit to a long-term global strategy, persevere through challenges, and prioritize solutions over difficulties.
Build collaborative ecosystems: Learn from successfully globalized companies and international peers to strengthen capabilities.

Case Study: China-Vietnam Joint Talent Development Program

Vietnam’s workforce is young (70% of working-age population), with low labor costs and cultural proximity to China. SailGlobal quickly built white-collar and blue-collar teams locally.
To address the shortage of skilled technical talent, SailGlobal implemented training programs to cultivate high-quality technical teams, helping manufacturing clients fill local technical gaps.

This case demonstrates how SailGlobal combines insights into clients’ pain points, its own expertise, and advanced technology to provide a “platform + service + solution” model. Such approaches are worth replicating across the overseas HR industry.

SailGlobal: Going Global Is the Inevitable Path for Chinese HR Firms to Become World-Class Institutions