“Would you take a 50% pay raise for a two-year offer in Southeast Asia?”
(The Approach to Expatriation by Chinese Companies Abroad. Source: Deloitte)
Similar posts are everywhere on platforms like Xiaohongshu, with titles such as “Anyone interested in working in the Philippines, legitimate industry,” “Should I take the expatriate job in Thailand?” “Expatriate opportunity in Malaysia, totally worth it,” and “The cost of being an expat in Indonesia.” Mr. Li, a 28-year-old product manager, is currently facing a similar decision: his company has offered him an expatriate opportunity in Hanoi, Vietnam, to oversee the localization and market expansion of a new product. While the attractive salary, overseas work experience, and rapid promotion prospects are appealing, concerns about being far from home, cultural shock, and the quality of life have kept him up at night.
Mr. Li’s dilemma is not unique. In the wave of globalization, an increasing number of Chinese companies are choosing to “go global” and explore overseas markets. This trend has led to a growing demand for expatriate talent. From the challenging explorations of pioneers like Huawei to current talent strategies in emerging markets such as Southeast Asia, and down to the personal considerations and decisions of individual employees, the topic of expatriation remains a critical issue for both companies going abroad and their employees.
Ms. Wang, who works in the Human Resources department of a multinational tech company based in Shenzhen, handles numerous expatriate-related matters daily. “Young people today have mixed feelings about expatriation,” she told EqualOcean. “Some are eager to give it a try, viewing it as a springboard for career development; others hesitate due to concerns about family and quality of life. But there’s no denying that expatriate experience is increasingly valued in the job market.”
Why Expatriation is an Essential Step for Companies Going Global
In 2010, Mr. Chen, fresh out of university, joined a leading Chinese telecommunications company. Just six months later, he was sent to Africa to begin his overseas career. "The company was in the midst of rapid international expansion and needed a large number of young employees to pioneer the markets abroad. We were known as the 'international vanguard,'" Mr. Chen recalled. "Conditions were tough back then, but we were all passionate, feeling that we were contributing to the company's global ambitions."
Mr. Chen's experience is emblematic of the early model for Chinese companies expanding overseas: sending large numbers of young employees abroad, regardless of the cost or risks involved. While this approach helped companies quickly gain a foothold in new markets, it also led to issues such as employee burnout, cultural clashes, and insufficient localization.
As Chinese companies have become more international, their expatriation strategies have also evolved. "Now, we focus more on balance," said Mr. Li, who oversees international operations at a well-known internet company, in an interview with EqualOcean. "On one hand, we need to export core technologies and management expertise; on the other hand, we are heavily investing in developing local talent. Expatriation is no longer just about 'sending people abroad'—it's about finding the right balance between localization and globalization."
In the early stages of a company's international expansion, expatriation is often an inevitable step. Core technologies and management practices need to be "exported," while the local talent pool may not yet be sufficient to support rapid business growth.
Mr. Zhang, a Chinese expatriate executive working in Vietnam, explained: "When entering a new market, we need to quickly replicate our successful domestic experiences. In this process, expatriate employees play a crucial role. They understand the company culture and business model while being able to adapt flexibly to the local market."
However, as business operations deepen, relying solely on expatriation becomes increasingly challenging due to high costs and difficulties in cultural integration. More and more companies are adopting a "core expatriation + extensive localization" strategy.
Mr. Xu, the founder of a chain of convenience stores with deep roots in Cambodia, shared his experience: "We primarily expatriate for key positions, such as senior management and supply chain management. At the same time, we recruit and develop a large number of local employees at the grassroots level. This way, we ensure our core competitiveness while better integrating into the local market."
Mr. Xu also highlighted a critical focus when employing talent in overseas markets: "In Cambodia, competition among Chinese companies is fierce. Those who can better localize will gain a competitive edge. But localization is not just about hiring local employees; it's about truly understanding and integrating into the local culture."
The Bittersweet Reality of Expat Life
Behind the high salaries and vast development opportunities, the joys and challenges of expatriate life vary for each individual.
Mr. Li has been working in Southeast Asia for five years, and he admits, "Expat life is far from as glamorous as one might imagine. After the initial excitement fades, what remains are loneliness and pressure."
Expatriates commonly face challenges such as cultural shock, language barriers, work-related stress, adapting to a new lifestyle, safety concerns, and homesickness. Reflecting on his early days in Southeast Asia, Mr. Li recalls, "The first few months were really tough. At work, I had to deal with completely different ways of thinking and a different work pace, while in my personal life, I had to adapt to everything from eating to getting around. Sometimes I felt incredibly lonely because there was no one around I could confide in."
However, many expatriates also find new opportunities and experiences while abroad. Ms. Wang, who was sent to the Philippines by a well-known e-commerce brand, shared her experience: "At first, I was really conflicted, mainly worried about the quality of life. But in reality, I gained far more than I expected. I found a good work-life balance, improved my personal skills, broadened my horizons, and enhanced my English proficiency. It was even a very joyful period of my life."
(Expat life full of vibrant experiences. Photo credit: LittleRedBook user "I am Xiao Wang Ya")
Ms. Wang specifically mentioned some amusing experiences arising from cultural differences: "Colleagues in the Philippines generally emphasize work-life balance. They often prefer to follow instructions rather than proactively thinking about optimizations, so there's naturally no culture of overworking or 'burning out.' To better integrate into their culture, it's important to join in on after-work activities, which makes communication at work smoother. Filipino colleagues love to party, and when local managers want to get their team to work, they often need to treat everyone to pizza, coffee, or milk tea. Relationships come first, then work follows. Trying to impose management styles from back home only increases turnover and lowers overall team efficiency."
The impact of expatriate experiences on personal development is often profound. Mr. Zhao, now 35, spent three years working in Africa and has since returned to China, where he holds a senior management position at a multinational company. He sees his expatriate experience as a turning point in his career: "During those years in Africa, I learned how to operate in resource-scarce environments and how to collaborate with people from different cultural backgrounds. These experiences have equipped me to handle various challenges much more effectively now that I'm back home."
However, expatriation is not suitable for everyone. Some people choose to return home after working abroad for a period, or even leave the company altogether. "This is quite normal," said a headhunter. "Expatriation requires strong adaptability and resilience. Some people discover new opportunities abroad, while others realize they are better suited to working in a domestic environment. The key is to understand yourself during this process and find the career path that best suits you."
How Can Companies Effectively Manage Expatriation?
Given the numerous challenges that come with expatriation, companies need to establish a comprehensive support system.
First and foremost is thorough training. Beyond language instruction, training should also encompass cultural awareness, safety education, and business skills to help employees quickly adapt to their new environment. The HR director of a large tech company mentioned, "We provide a month-long, intensive training program for employees about to be expatriated. The program covers language, culture, safety, and psychological adjustment, among other aspects. We even invite current employees working abroad to share their experiences, giving newcomers a more direct understanding of what to expect."
Next is a well-structured compensation and benefits package. In addition to a base salary, companies should consider offering housing allowances, education subsidies for children, and home leave to ease employees' concerns. "Whether the compensation package is attractive directly influences an employee's willingness to accept an expatriate assignment," said an HR manager at a multinational company. "But more importantly, we need to create a comprehensive benefits system that makes employees feel cared for by the company. For example, we provide married employees with a certain number of round-trip tickets so they can reunite with their families."
Even more crucial is offering a clear career development path for expatriate employees. Expatriation should not be a "career dead end" but rather an opportunity for rapid growth. The head of international operations at a well-known internet company emphasized, "We regularly hold career development discussions with our expatriate employees to understand their aspirations and help them plan their future career paths. Some may want to continue developing in overseas markets, while others may wish to return home after gaining experience—we do our best to accommodate both."
Additionally, companies should establish a comprehensive risk warning and response mechanism, as recommended by EqualOcean. This involves preparing contingency plans for potential risks, such as political instability or natural disasters, to ensure employee safety.
Localization vs. Globalization: Finding the Balance
As companies expand their operations, striking the right balance between localization and globalization becomes a critical challenge for those venturing into international markets.
Relying too heavily on expatriates can lead to high costs and difficulties in cultural integration. However, excessive localization might cause a company to lose its core competencies, making it difficult to maintain the quality of products and services.
Mr. Liu, who has been involved in cross-border e-commerce in Southeast Asia for many years, shared his insights: "To succeed in e-commerce in Southeast Asia, the business must be localized, and so must the employees. We have to adapt to their way of life and customs. However, we also need to retain our core strengths. For example, in terms of technology and operations, Chinese talent often has superior experience and capabilities."
Mr. Liu also highlighted the challenges of managing local employees: "Every country has a different culture, and management styles need to be adjusted accordingly. For instance, in Thailand, employees generally have a 'laid-back' approach and work at a slower pace, but they maintain a positive attitude. In Malaysia, as a Muslim-majority country, we need to respect the religious practices of our employees, such as ensuring they have time for prayer. These are things we must adapt to and learn."
Lazada, Alibaba’s e-commerce platform in Southeast Asia, provides a great example. The company's senior management is mostly made up of Chinese expatriates, while the majority of the regular employees are locals. This model ensures that the company retains its core competencies while deeply integrating into the local market.
Mr. Xu, who has managed a large local workforce in Cambodia for many years, pointed out succinctly: "To achieve effective localization, it is crucial to ensure that local employees truly understand and embrace the company's culture. This takes time and patience. At the same time, we need to provide comprehensive training and advancement opportunities for local employees. Only by doing so can we reduce talent turnover and build a stable local team."
Mr. Xu employs an interesting method: "I often take expatriate team members to relax at a riverside bar after work. In this informal setting, we not only strengthen our relationships but also help them ease the anxieties of being in a foreign land. These informal exchanges are often more effective than formal meetings."
He also shared a typical scenario of cultural understanding between local staff and Chinese expatriates: "In front of one of our stores, a large tree was blocking the signboard. On the tree was a small, mysterious-looking house. The Chinese staff naturally suggested cutting down the tree to make the sign more visible, but they were immediately stopped by the local employees, who whispered that it was a shrine for 'spirits,' and that it should not be disturbed."
The stories of expatriates like you, me, and others continue...
In the future, truly successful multinational companies will be those with a global vision that can also adapt locally, becoming "globally localized" enterprises. How to find common ground amidst cultural differences, balance personal development with corporate interests, and achieve a harmonious blend of localization and globalization—these are challenges that Chinese companies venturing abroad and their expatriate employees must explore together.