Introduction

As globalization shifts from an "efficiency-first" paradigm to a "security-first" mindset, Chinese enterprises going global are experiencing a historic turning point: tariff barriers are reshaping the trade landscape, technological decoupling is forcing supply chain restructuring, and geopolitical tensions are giving rise to asymmetric competition. In this smoke-free battlefield, Chinese companies face not only market and profit challenges but also the iterative demands of regulatory understanding, the reconstruction of cultural DNA, and the ultimate test of organizational resilience.

In the SailGlobal Outbound Study Club livestream, practical experts from different companies were invited:

Long Jie: Head of HR at TCL Vietnam, with 13 years of HR management experience; pioneer in TCL’s first overseas self-built factory from 0 to 1; main initiator of the “Vietnam HR Alliance.”

Liu Xuefei: Overseas expert from a renowned telecommunications company, with 16+ years of international experience across 20+ countries and regions; participated in the establishment and mature operation of HR systems for three listed companies going global.

Lin Yu: Co-founder of Success Human Resources Group and Head of Vietnam Region, with 12 years in the HR industry and 6 years in overseas HR services.

Huang Yuanming: CHO of SailGlobal, with 22 years of HR management experience, nearly 10 years overseas; former Huawei Overseas HRD and SF International CHO; best-selling HR author with 11 published works.

These four experts conducted an in-depth discussion, drawing on twenty years of outbound experience to break down three key topics.

Topic 1: How does the current complex international landscape affect the choice of target countries for different industries, and what adjustments are needed?

Long Jie: Manufacturing companies must leverage “relative competitiveness” to navigate cycles

Long-term perspective: Vietnam was TCL’s first overseas market. By adhering to a consistent, long-term approach validated over 26 years, the company demonstrates the value of long-termism.

Reconstructing competitive logic: Amid the uncertainties of great power competition, focus on refined management and breakthroughs in core technologies to enhance relative competitiveness.

Practical insights from Vietnam: Through co-creation and sharing within the “Vietnam HR Alliance,” TCL optimized labor costs effectively.

Liu Xuefei: Beware the pitfalls of “pseudo-isolation” in multinational supply chains

Mexico cautionary tale: Some Chinese enterprises tried to bypass challenges via local proxy shareholding in Mexico, only to have their assets legally appropriated through local lawsuits.

Market diversification: Reduce dependency on the U.S. market. In 2023, Chinese enterprises’ investments in the Middle East and Latin America increased by 37% year-on-year.

Technological breakthrough is key: Low-end manufacturing alone cannot withstand trade wars; future strategies must emphasize continuous innovation and technology iteration to avoid patent barriers.

Huang Yuanming: Address uncertainty with certainty

Supply chain diversification: Strategically allocate operations across China, Europe, North America, Latin America, and Southeast Asia. For example, a pharmaceutical company that preemptively entered the European market secured many orders during the pandemic while competitors could not operate there.

Long-term perspective as a guiding principle: Regardless of fluctuations in trade relations or tariff policies, maintain a long-term strategic stance with clear principles.

Path to brand elevation: Shift from “Made in China” to global exports of “technology + services,” enhancing brand and product value, and establishing unique advantages in vertical niche markets.

Topic 2: What local challenges do Chinese enterprises face when going global, and what “pitfall avoidance” suggestions exist?

Liu Xuefei: Four Steps to Build a Globalized Organization

Phase	Key Actions
Comprehensive International Organization Design	Establish an overseas business unit or factory specifically for international operations
Talent Deployment	Allocate talent in stages; select “cultural bridge” expatriates to lead and build the local management team
System Adaptation	Customize local versions of compensation, performance, and compliance manuals
Local Integration	Develop local managers; select local talent who understand Chinese culture

Long Jie: Globalization is essentially a process of “localization.”

Standardization first: Before domestic management systems are fully established, be cautious about going abroad; even after systems are perfected, there may still be local adaptation issues. At a minimum, it is necessary to cultivate PDCA awareness among local employees.

A capable and battle-ready core team: Initially led by Chinese managers, strengthen systematic localization training, and formulate localized systems.

Cannot be accomplished overnight: The development of local capabilities requires practical accumulation; companies must dare to take “calculated risks” in quickly identifying and employing talent.

Huang Yuanming: Avoid being “dimensionally reduced” through the dandelion strategy and three forms of integration.

Integrate into the local business environment: Example of a Middle Eastern fresh food delivery failure — completely copying domestic standards, neglecting local labor procurement habits, living habits, and transportation efficiency.

Integrate into local labor culture: For instance, in Brazil, office space standards are strict to the centimeter — if a space is designated for a certain number of people, no more desks can be added.

Integrate into the local community: Truly regard yourself as part of the community, bringing value locally; like a dandelion, take root wherever you land, improving the local ecosystem’s environment and welfare level.

Topic 3: Cross-cultural communication and management — how to adapt to local culture and market, ensuring effective communication to promote collaboration and synergy?

Long Jie: Three core keywords for management in Vietnam:

Honesty: Sincerely face local employees, government, and social relationships, and manage the enterprise with simplicity and integrity.

Respect: Accept local employees’ learning pace, social habits, and cultural barriers.

Compromise: Compared with domestic standards, certain compromises are needed regarding employees’ choices when work load conflicts with family emergencies or other work matters; an AB-role backup mechanism should be established.

Liu Xuefei: Principles of human-centric management

Consistency in human nature: Local cultures may differ, but human nature is consistent; treat local employees sincerely, use the local language as much as possible to fully understand local perspectives, creating positive feedback.

Cognitive misalignment: Chinese managers view performance as a tool linked to compensation, whereas Western employees see it as a path for capability improvement, which may cause anxiety among Western employees.

Huang Yuanming: Communication mechanism design

Emotional link through language integration: Strengthen integration with the local language, improve English proficiency, and appropriately enhance local language skills — this is an excellent way to demonstrate attitude and build emotional connections.

Respect religious customs: Respect local customs and taboos to better understand local culture.

Communication mechanism design: Pay attention to the choice of cross-cultural communication methods and tools; solicit local supervisors’ opinions when making decisions, and choose methods more effective for local personnel.

Conclusion:

The story of Chinese enterprises going abroad always revolves around two keywords: respect for rules and respect for human nature. When trade barriers and technology restrictions become the new normal, the true way to break through may lie in a slogan in a Vietnamese workshop — “become like air”: both integrated into the local ecosystem and indispensable.

Dancing with the Storm! Overseas Experts Unite to Advise—How Chinese Companies Survive in the Eye of Global Change!