The movement of people often serves as a key indicator of an industry’s trajectory. In the ongoing wave of globalization, one role stands out: the overseas country manager. These individuals are the frontline leaders when Chinese companies expand internationally, and their experiences provide a unique lens through which to understand the challenges and opportunities of global expansion.
36Kr has followed this phenomenon closely, connecting with country managers from various companies. Despite its seemingly glamorous reputation, the role is among the most volatile in the market.
For instance, a country manager for a Chinese company in Mexico recently shared insights with 36Kr. Less than a week later, the company announced the manager’s resignation as part of a strategic adjustment. Similarly, another professional active in Latin America reported that two Chinese companies in Mexico replaced their country managers within the past year. In fast-paced industries like e-commerce, the pressure to deliver results often forces replacements within 8–9 months.
The evolving role of country managers
In the early stages of globalization by Chinese companies, country managers were typically selected from within. They were either recommended from various internal departments, recruited as senior executives domestically, or deployed directly as fresh graduates. For instance, in the early 2000s, Huawei initiated its overseas expansion by appointing top-performing employees from different departments. Rarely were local senior executives elevated directly to the highest overseas positions.
Regardless of their background, the responsibilities of these managers were remarkably similar: establishing a market presence, assembling a local team, and building regional networks entirely from scratch.
On the surface, the role carried a prestigious title and generous compensation, designed to incentivize long-term international assignments. Interviews conducted by 36Kr revealed that many Chinese companies offer expatriation allowances ranging from 20–50% of the base salary. Additionally, some companies provide hardship allowances for challenging regions, cover global tax discrepancies, and include extra benefits such as enhanced insurance packages.
However, the reality of the overseas country manager role is often far from ideal.
Yafei (pseudonym), who joined a Chinese lithium battery equipment manufacturer three years ago as an overseas operations director, experienced this firsthand. After establishing a comprehensive business framework, she chose to resign and launch a consultancy specializing in global business expansion. Reflecting on her experience, Yafei described the immense pressure she faced: over the past six months, she received numerous “SOS” messages from executives urgently seeking suitable overseas managers.
Despite the demand, the success rate for placements has been dismal. On one hand, candidates who meet all the necessary criteria are rare. On the other, company leaders often set unrealistic expectations for their overseas operations. “Even when I recommended excellent candidates, very few agreements were reached after discussions,” Yafei said. Industry conversations revealed that the average tenure for overseas business leaders is under two years, with three-year tenures being exceptionally rare.
This instability stems from both organizational shortcomings and individual limitations. A former Huawei employee, now a consultant for state-owned and private enterprises, told 36Kr, “Many companies lack a long-term talent strategy for globalization. When businesses urgently need development, they hastily assemble teams, significantly increasing the likelihood of failure.”
“Few companies realize that their brand is virtually unknown overseas and lacks competitive advantages or appeal as an employer. Starting from scratch requires building a new team, establishing organizational culture, and sometimes even creating new product lines. This demands the patience and time akin to nurturing a startup,” Yafei added. “If this fundamental understanding isn’t addressed, even hiring the right person won’t yield results—let alone retain them.”
Huawei, through years of experience in overseas market expansion, has developed a comprehensive competency model for country managers. This model defines the ideal traits of successful leaders as:
- A strategic planner and executor who aligns with corporate goals.
- A developer of high-performing, cross-cultural teams capable of navigating diverse environments.
- A coordinator of resources and builder of infrastructure to support sustainable operations.
- A manager accountable for overall business results, driving both growth and stability.
- A cultivator of harmonious and productive business environments that foster collaboration and long-term success.
Evidently, finding someone who embodies all these qualities is no easy task.
A headhunter explained that in the early stages of business development, country managers bear primary responsibility for delivering results. While headquarters can offer some support, these managers must address most challenges independently once stationed abroad. This requires exceptionally high levels of competence. “Many companies prefer to appoint individuals with sales backgrounds as country managers,” the headhunter said. “If they fail to meet expectations within about two years, headquarters typically starts looking for replacements.”
While replacing managers when market development falters may seem logical, the reality is often harsher: even those who successfully establish a foothold in a new market can find themselves in precarious positions.
One reason for this instability is the evolving requirements of companies at different stages of globalization. For example, Temu initially appointed country managers with expertise in market promotion and rapid growth. However, as the company’s focus shifted to compliance, stability, and refined management, these managers were replaced with professionals possessing legal and financial expertise.
Similarly, J&T Express employs two distinct categories of employees for its global operations. One group includes former executives from Oppo and Vivo (OV), forming the core of J&T’s overseas team. The other consists of personnel from Chinese express delivery companies, who bring deep knowledge of logistics. In emerging markets like the Middle East and Latin America, OV executives are often dispatched first to spearhead operations. Over time, personnel with logistics expertise are brought in to consolidate operations, gradually replacing the initial wave of managers.
From headquarters’ perspective, these adjustments are necessary to align leadership with the company’s evolving priorities. However, new appointees often require significant time to gain the experience needed to navigate their roles effectively. For headquarters, it is a calculated compromise—acknowledging the risks but seeing no better alternatives.
Another critical factor is the challenge of fostering trust and autonomy in remote markets. Just as companies like Google, IBM, and Microsoft faced trust issues when entering China, Chinese firms often encounter similar struggles abroad.
When Liu Zhen took over Uber China, her title was head of strategy—not CEO. The real decision-making power remained with Uber’s founder, Travis Kalanick, who spent nearly 80 days in China in 2015. Kalanick frequently called employees in China early in the morning, effectively serving as the region’s de facto CEO.
This historical example highlights a mindset still prevalent among many Chinese companies pursuing globalization: while specific approaches may vary, they often rely on top-down decision-making. This raises a critical issue—the success of overseas expansion depends largely on whether headquarters is willing to grant sufficient resources and autonomy, and whether founders can actively lead.
For instance, Wang Jie, co-founder of tea brand Ningji, personally conducted multiple field visits to North America in 2024 to prepare for the brand’s first overseas store, scheduled to open this year. Wang believes that founder-led initiatives are crucial during the early stages of international expansion, helping mitigate risks and enabling quick decision-making.
“International expansion is not an isolated effort. It’s a strategic initiative at the corporate level,” Wang said. “The founder’s ability to mobilize resources ensures greater efficiency in every aspect of entering and developing in foreign markets.”
For many overseas executives, frequently switching roles and companies has become a standard part of life.
36Kr identified several reasons for this phenomenon:
- High demand for talent: Overseas managerial expertise is in constant demand, ensuring a steady flow of job opportunities for experienced professionals.
- Transferable skills: Experience gained in similar regions and industries often translates across roles, allowing executives to leverage their accumulated knowledge repeatedly.
- Advanced business models: Many Chinese business models are considered innovative and competitive in global markets, giving professionals with relevant experience a significant advantage when transitioning to new positions.
Despite the demand, the relationship between company leaders and country managers is often fraught with challenges. Headquarters frequently underestimate the complexities of building local market recognition or creating an attractive employer brand, leaving country managers to bridge the gap. This misalignment between expectations and on-the-ground realities often leads to miscommunication and frustration.
On a structural level, trust remains a critical issue. In remote regions, a strong foundation of trust is vital for success. Yet many companies hesitate to delegate meaningful authority to their country managers, opting instead for tight, centralized control. As a result, managers often feel stifled, unable to make critical decisions independently.
Take J&T Express as an example. When entering unfamiliar regions, the company’s strategy of rotating personnel has led to inefficiencies and delays. New hires require significant time to adapt to their roles, disrupting operations and reflecting a broader struggle to balance flexibility with stability in global markets.
Historical precedents offer valuable insights into the challenges of globalization. Companies like Google and Microsoft faced significant hurdles when entering the Chinese market, largely due to their initial hesitation to delegate meaningful decision-making authority to local teams. This reluctance led to slow progress and missed opportunities. The takeaway here is clear: globalization requires not only a solid strategy but also a willingness to empower leaders on the ground.
Globalization remains a critical pathway to sustained growth. However, global success hinges on adaptability, patience, and a willingness to take a long-term view. Both businesses and the individuals leading their overseas expansions must embrace these principles to navigate the complexities of international markets effectively.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Ren Qian for 36Kr.