Localization Reform of Multinational Enterprises in China-based on Human Resource Management, Cross-cultural Management and Talent Localization Strategy

Against the backdrop of the intertwined processes of globalisation and localisation, the Chinese market entry rate of multinational enterprises has risen significantly, further highlighting the importance of the Chinese market on a global scale. By 2023, MNEs' investments in China will account for around 20 per cent of total global MNE investments. In recent years, more and more multinationals have chosen to set up regional headquarters or R&D centres in China. This phenomenon not only promotes China's sustained economic growth, but also makes the demand for MNEs' localisation reforms stronger. Focusing on the localisation reform of multinational enterprises, this study analyses the strategies and practices of human resource management, cross-cultural management and talent localisation. In cross-cultural management, it applies Kurt Lewin's Unfreeze-Change-Refreeze Model to explore how to effectively adjust the power structure to adapt to the local market. In today's market landscape, MNEs in China suffer from HQ dominance in these three areas: high talent mobility, culture clash, insufficient local talent development, and over-reliance on expatriate management. Through modeling and theoretical analysis, MNEs must focus on the balance between global and local, cultural adaptation and integration, and the improvement of the localization of key positions.