International firms in China have always been able to secure stable resources for growth in their competition with national enterprises. Foreign companies for years have been able to run circles around Chinese companies, flaunting better skills, human resources, and capital. But now, Chinese-grown companies are now able to offer top talent from around the world competitive career opportunities.
A joint report by Bain and Company and Linkedin China on Thursday noted “As local companies grow in size and prominence, they are increasingly able to compete against global competitors to win the next generation of Chinese leaders,”. This is common sense, as any country’s wealth grows they will be able to recruit better talent and secure better resources. But the important thing to note is not that it can happen, that it finally is happening. What will this new reality mean for the future of enterprises in China and free trade in the nation and the world?
Currently, regional roles held by Chinese nationals in multinational companies are at around 3/5ths or 60%. Compare this to the past and you will find a shocking difference, with only 10 percent in the past. Speculators now say homegrown talent will take over management and leadership positions which were previously held by foreigners.
This narrowing in the gap between recruitment and talent search between multinational companies comes at no surprise with current market situations. The world’s second-largest economy has long been a growth hotspot for businesses of all industries, but many businesses have recently hit their snags in situations like market access barriers, reformation agenda, and competition from domestic producers.
in a June 2016 survey, it was noted that 41% of European companies were re-evaluating Chinese operations and planning to cut costs. In the US, the situation was no different, big companies like Uber, Yum Brands, Coca-Cola, and international Paper unloaded their China mainland businesses.
Until recently, multinational companies in China were considered the best place to build a career in China. This reality is backed by the fact of a large number of leadership development opportunities, access to global best practices, and of course attractive compensation were offered. Now, Chinese companies are offering the same compensation tacked onto a better opportunity to drive change. Chinese companies are destined to be the major movers in their own country, where multinationals are limited to following a specific direction predetermined by the government.
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