European or Chinese Executive?

Zwei erfolgreiche Geschäftspartner – ein asiatischer Mann und eine europäische Frau – stehen mit verschränkten Armen in einem modernen Büro

The strategic decision for your China business

Choosing the right leadership personality for your Chinese subsidiary is one of the most consequential strategic decisions you will make. The question “A talent from Europe or from China?” has no one-size-fits-all answer. The right decision depends solely on your specific company situation, your goals, and the respective phase of your China engagement.

A direct comparison of cultural skills is not very productive in this context. It’s more about understanding which profile offers the greatest strategic leverage in your specific situation to bridge the 8,000 kilometers of distance and implement your goals on-site.

Three questions for more strategic clarity

Situation: Your company is about to establish a subsidiary in China or is in the initial phase after market entry. The processes are new, structures need to be built, and the connection to the European headquarters is mission-critical.

Strategic recommendation: In this phase, maximum trust and a deep understanding of your internal corporate culture is the decisive factor. Rely on a proven leadership personality from your immediate environment.

  • Internal talents: A person who comes from your own company knows the products, processes, and company DNA. Communication and information flow to headquarters are optimally ensured here.
  • External trusted persons: External European executives can also be suitable if you already have a long-standing, trusting relationship with them. In this phase, a European executive is often the safer choice to secure your investment and implement your culture on-site.

Situation: Your company has maintained a sales or production subsidiary in China for many years. The team on-site is purely Chinese, business processes are established, and success strongly depends on local networks (Guanxi).

Strategic recommendation: Here, the ability to integrate and lead a local team is crucial. A lack of language and cultural understanding can quickly lead to an information deficit for the executive.

  • Chinese executives: A Chinese leadership personality with international experience is often the ideal choice here. They enjoy a trust advantage with the local team, speak the language perfectly, and navigate confidently in local networks.
  • The “bridge builder”: The absolute ideal candidate is a Chinese talent who has studied or worked in Europe. These personalities understand both worlds and can function as perfect cultural bridge builders between the Chinese subsidiary and the European headquarters.

Situation: Your factory or subsidiary is not located in metropolises like Shanghai or Beijing, but in an industrially characterized region that is less attractive for expats (e.g., Shenyang).

Strategic recommendation: Personal and family satisfaction is an often underestimated performance factor. An executive whose family does not feel comfortable at the location will not be able to perform at their full potential in the medium to long term.

  • Personality analysis: Regardless of nationality, you must clarify in the selection process whether the talent and their family are willing to live at this specific location for several years. This could be a European who consciously seeks seclusion, or a Chinese executive who is familiar with life in this region. Personal motivation is more important here than origin.

Tip: To verify the suitability and true motives of talents for such locations, a professional background check as part of the recruiting process can provide valuable, deeper insights.

The choice between a European or Chinese executive is not a question of “better” or “worse”. It is a strategic decision that requires a precise analysis of your current situation. Ask yourself the question: “What is the biggest challenge this executive must solve for us in the next three years – building trust, integrating a local team, or managing a difficult location?”

Answering this question is at the core of every successful Executive Search. And when the answer is unclear, the problem often lies one level deeper – in the overall strategy. This is precisely where our China Performance Check comes in, to provide you with clarity for this important decision. Let’s analyze your situation in a personal exchange.