Introduction

In April 2025, EqualOcean released the EqualOcean Overseas Country Quarterly Report – United States (Q1 2025), focusing on the opportunities and challenges of the U.S. market in the globalization process of Chinese enterprises.

As a benchmark enterprise in the field of HR services for Chinese companies going global, SailGlobal’s overseas experts were invited to participate in the report’s research and content development. Drawing on their ten years of experience in global human resources management, they contributed cutting-edge insights and practical strategies to the report.

1. Key Insights from SailGlobal

The U.S. Labor Market: A Tale of Two Extremes

Intense Competition for Skilled Talent: Demand is surging in technology, healthcare, and other sectors, but local supply is insufficient. Companies need precise recruitment and skills training to overcome these challenges.

Weakness in Low-End Service Industries: Retail and hospitality are hit by rising costs, shifting labor demand toward flexible employment models.

Cultural Gaps Between Chinese and U.S. Workplaces

Differences in Management Style: U.S. employees value personal contribution and work boundaries, while Chinese enterprises often have a more hierarchical structure and emphasize indirect communication and interpersonal relationships.

Compliance Boundaries Are Non-Negotiable: U.S. labor laws are strict; oversights in overtime pay, data privacy, and other details can trigger class-action lawsuits, requiring professional teams for guidance.

Opportunities and Challenges Under Trump-Era Policies

Beneficial Industries: Traditional energy, AI, aerospace, and other sectors benefit from policy support, providing opportunities for overseas enterprises to strategically expand.

Risky Industries: Import-reliant manufacturing and Chinese-funded technology companies face tariff barriers and regulatory scrutiny, necessitating risk mitigation through “bridge companies.”

2. Practical Experience: Dual Barriers of Technology + Service

Differentiated Positioning

Industry-Customized Solutions: For technology companies with high-end talent demands, design a “rapid recruitment + cross-cultural training” service package; for manufacturing, provide “shared HR + precise payroll” solutions, adaptable to production cycle fluctuations.

AI-Driven Compliance System

Tracks tax law changes across all 50 U.S. states in real time, automatically adjusting payroll calculation rules to avoid tax disputes. For example, a client leveraged the system to comply with California privacy laws, saving 30% on compliance costs.

Winning the Talent War

Localized Talent Pools: Partner with community colleges to secure skilled talent, reducing reliance on H-1B visas.

Incentive Design: Combine equity rewards with tax regulations to launch “medium-to-long-term benefits + flexible cash-out” plans, improving talent retention.

3. “Golden Rules” for Chinese Enterprises Going Global

Dynamic Compliance: Build a policy-tracking team to monitor trade agreements and labor law updates.

Cultural Adaptation: Employ HR consultants with dual China-U.S. backgrounds to establish a localized management framework.

Flexible Employment: Adopt a “core full-time + project-based outsourcing” model, using EOR to reduce operational risks.

4. Recruitment Strategies for Chinese Enterprises in the U.S.

Strategy 1: Full Relocation

Applicable Scenarios:

Core Technology & Sensitive Business: For highly sensitive technologies like semiconductors or AI algorithms, short-term reliance on domestic teams ensures security and continuity.

Service-Oriented Businesses with Low Cultural Barriers: For example, cross-border e-commerce operations can directly replicate domestic models.

Hybrid Team Scenarios:

“Tech + Market” Driven Industries: E.g., new energy vehicle companies—technical staff based in the U.S. paired with local sales and compliance teams.

Rapid Localization Needs: E.g., TikTok builds a local content review and operations team in the U.S. to reduce policy risks.

Hybrid teams balance costs and cultural adaptation, leverage local talent to fill market knowledge gaps, and reduce large-scale visa dependence.

Strategy 2: Build Localized Teams

Hiring HR consultants familiar with both Chinese and U.S. cultures helps enterprises quickly integrate into the U.S. market. These consultants understand Chinese management philosophies and local labor laws, workplace culture, and talent markets. Collaboration with HR service providers can further enhance HR management capabilities.

Strategy 3: Improve Systematic Frameworks

Establish dual-track promotion systems with clear career paths. Promotion rules should be simple, transparent, and not nationality-dependent. Systemic innovation fosters cultural integration, promotes local talent development, breaks local employee promotion ceilings, and builds a three-layer protection network: “system guarantees – emotional connection – value co-creation.”

Strategy 4: Flexible Employment

Adopt a “core full-time + project-based outsourcing” model. Core roles are filled with full-time staff to ensure team stability and professionalism, while short-term or non-core tasks (e.g., marketing campaigns, temporary data entry) are outsourced to specialized service providers.

Strategy 5: Compliance First

Ensure contracts comply with U.S. federal and state labor laws, including but not limited to working hours, compensation, leave policies, and non-compete clauses. Contracts must meet local minimum wage and overtime requirements to ensure fairness, reduce economic losses, and minimize labor disputes.

Strategy 6: Talent Attraction

Strengthen promotion of Chinese enterprises’ global vision and technological capabilities. Participate in international tech exhibitions and share successful global project cases to attract U.S. local talent.

Collaborate with U.S. industry associations, which aggregate a large pool of professionals, to gain direct talent referrals and industry-specific recruitment information.

Strategy 7: Leverage University Channels

Conduct campus engagement locally. Each fall, tech giants like Google and Apple converge on top universities such as Stanford, MIT, and Caltech for talent recruitment.

Actively participate in career fairs at prestigious schools to showcase corporate strength and prospects, attracting top graduates.

Sponsoring local sports events can also enhance brand recognition and reputation in the region.

5. “Organization First” for U.S. Expansion

As a developed country, the U.S. generally has high wage levels, ranking 6th globally, especially in cities like New York and San Francisco, whereas some Midwestern and Southern states have relatively lower wages.

High-wage industries in the U.S. typically require higher education and skills than in China. Therefore, regional strategy optimization should prioritize establishing operations in lower-cost states, such as Texas and Arizona, to reduce blue-collar labor costs.

Conclusion

Chinese enterprises expanding into the U.S. must comply with local labor laws, avoid forced overtime, adjust incentive mechanisms, and adopt performance-driven management.

This approach ensures efficient operations while respecting U.S. employees’ emphasis on work-life balance.

Accessing the EqualOcean In-Depth Report

The full EqualOcean U.S. Market Report covers policy trends, industry cases, and data insights. It is now available for free on the EqualOcean website: https://www.iyiou.com

Professional Empowerment, Insight into the Future — SailGlobal Co-Creates the EqualOcean U.S. Market Report