China’s role in global business strategies highlighted

China will remain important to the long-term strategies of multinational companies, given its unmatched market scale, evolving consumer demand and increasingly strong innovation ecosystem, according to a senior executive.

Kati Najipoor-Smith, head of the Global Automotive Practice at Heidrick & Struggles, sees China not only as an important market, but also as an increasingly important source of innovation and leadership talent for global companies.

"If you are a global company, you cannot afford not to be here," she said in an exclusive interview with China Daily.

China's vast market and fast-changing consumer preferences continue to create long-term opportunities for multinational companies, said Najipoor-Smith, who also serves as regional co-managing partner of the CEO and Board of Directors Practice in Europe and Africa of Heidrick & Struggles.

Businesses in China are not only responding to existing demand, but also creating demand by offering products and services consumers may not have known they needed, she said.

Over the past decade, China has developed a strong innovation ecosystem, supported not only by advances in individual technologies but also by a broader environment that encourages innovation, she added.

That shift is also changing how multinational companies view Chinese leadership talent. More Chinese executives are likely to take senior roles in global companies, particularly in technology-related areas, as they bring long-term strategic thinking, international exposure and strong execution capability, according to Najipoor-Smith.

The growing role of Chinese talent comes as companies worldwide face a more complex operating environment. Over the past five years, businesses have had to navigate overlapping challenges, from geopolitical uncertainty to rapid technological advances.

Najipoor-Smith described the current environment as one of "poly-crisis", in which companies are no longer facing one crisis at a time. This has pushed leaders to become more proactive in identifying risks, building scenarios and preparing for uncertainty.

She cited findings from Heidrick & Struggles' 2026 CEO & Board Confidence Monitor, a global survey of CEOs and board members, which shows rising confidence in leadership teams' ability to deliver strategy despite continued volatility.

"Leaders and companies have developed a different muscle to be much more resilient," she said.

Against this backdrop, succession planning and leadership continuity have become more important for companies. A smooth and long-term succession process at the CEO and board levels is important for business continuity and corporate success, Najipoor-Smith noted.

Another shift is what she called "connected leadership." With artificial intelligence and other technologies advancing rapidly, the need for cooperation and alliances is becoming stronger, not weaker.

In Najipoor-Smith's view, the world has become too complex for any single company or leader to deal with alone. CEOs increasingly need to connect with people and organizations outside their own companies and "orchestrate the ecosystem".

Chinese companies and leaders, she said, often show strengths in long-term planning, digital-first thinking, experimentation and execution.

Compared with many companies in Europe and North America, which tend to give greater weight to macroeconomic risks and short-term capital market pressures, Chinese companies are often more focused on technological opportunities and quicker to adjust when conditions change, Najipoor-Smith said.

As more Chinese companies expand overseas, however, governance will become increasingly important.

While Chinese companies have strong advantages in innovation, ambition and execution, becoming sustainable global leaders will require further development in governance practices, leadership planning and cultural adaptability, Najipoor-Smith said.

Good governance starts with building an effective board that can oversee strategy, assess risks and help companies look ahead, she said.

For Chinese companies going global, she said the challenge is to keep their Chinese roots and corporate strengths while developing a more global culture.

This includes understanding different markets, embracing diversity and attracting the best talent locally and internationally, she added.