Advise Chinese MNCs on staffing policies in the developed countries based on Huawei’s recent experiences

Assignment Brief

Read the following articles and discuss how you will advise Chinese MNCs on staffing policies in the developed countries based on Huawei’s recent experiences?

Sample Answer

Advising Chinese MNCs on Staffing Policies in Developed Countries – Lessons from Huawei

Introduction

As Chinese multinational corporations (MNCs) expand into developed markets, choosing the right staffing policies is critical to their success. Huawei, one of China`s most prominent global firms, has faced various staffing challenges and successes in developed countries such as the USA, UK, and across Europe. This report discusses key insights from Huawei’s experiences and provides recommendations for other Chinese MNCs on how to adopt effective staffing strategies in developed markets.

Understanding Staffing Policies

MNCs generally choose from four main staffing strategies:

1. Ethnocentric Approach – Staff from the home country manage foreign subsidiaries.

2. Polycentric Approach – Local nationals manage local subsidiaries.

3. Geocentric Approach – Best talent is hired regardless of nationality.

4. Regiocentric Approach – Staff are hired within specific regions.

Huawei has experimented with several of these models, shifting from ethnocentric towards geocentric in some regions as it matured internationally.

Huawei’s Staffing Experience in Developed Markets

Early Ethnocentric Model

Huawei initially relied heavily on sending Chinese employees (expatriates) to developed countries to manage operations. This approach helped ensure control, maintain corporate culture, and support technology transfer. However, it also caused issues such as:

• Cultural clashes with local staff.

• Public suspicion and government scrutiny (e.g. in the US).

• Higher expatriation costs and limited local talent development.

Shift to Localisation

Huawei later recognised the importance of local talent. It adopted more polycentric and geocentric approaches in Europe and the UK:

• Local managers were hired to lead regional branches.

• Collaboration with local universities to train and recruit talent.

• Better integration into local labour laws and societal norms.

For example, in the UK, Huawei partnered with over 35 universities and employed thousands of local professionals. This improved its brand image and operational efficiency.

Key Lessons from Huawei for Chinese MNCs

Adapt Staffing to Local Context

Huawei learned that one-size-fits-all does not work. In Europe, a polycentric model built trust. In developing markets, the ethnocentric model ensured control. MNCs should assess cultural, legal, and operational needs before choosing a staffing policy.

Develop a Global Talent Strategy

Huawei’s shift to geocentric staffing showed that hiring the best talent globally improves innovation and competitiveness. Chinese MNCs should:

• Promote diversity in leadership.

• Create global talent pipelines.

• Offer training programmes to align talent with company culture.

Address Cultural and Legal Differences

In developed countries, employment laws are strict. Huawei faced backlash in some countries due to differences in work culture, labour rights, and HR practices. Chinese MNCs should:

• Respect local labour standards.

• Invest in cross-cultural training.

• Avoid over-reliance on Chinese managers abroad.

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