Navigating the Transition: Essential Guidelines for Expats Leaving China

Maze with exit signs. Rayson Tan - phot0
Expats leaving China have to follow procedures – and common sense.

Never Let Them See You Pack

Maybe you’re considering leaving China. Maybe you are discussing definite plans. Maybe you’re just wondering out loud.

Don’t. Say. Anything.

The moment an expat talks about leaving town, their status changes completely. Every expat has at least 3 teams of stakeholders:

  • 1. Family/Friends/Personal support
  • 2. Local professional network
  • 3. Wider professional network

The moment you talk about moving, all three networks will treat it as a definite decision—and will start treating you differently. If you end up going, then that’s not so bad as long as you can control the message and timing. But if you are NOT leaving and were just floating an idea or speculation, then it can ruin your reputation for no reason. You worked hard to develop a network and reputation in China, and you should do your best to protect it as you make your move.

Expats considering relocating have to be discreet.

Your decision to live in China was NOT a personal decision. Everyone you know—and most of the people they know—has weighed in with their opinion, both emotional and professional. You might not think that your address defines you, but many of the people around you do. And the minute you announce that you are leaving, your identity becomes less clear. If you don’t live in China, who are you?

The Don’ts & Do’s of Planning to Leave China

Don’t talk about leaving:

  1. You will appear less reliable. No matter how much you explain, some local contacts will consider this quitting. They’ll understand, but some people will judge that you are “not seeing the challenge through.” Don’t fight it, and don’t take it too seriously. This will pass.
  2. Your international network will put you on hold. This one depends on your plans and the nature of your business. It always helps if you have a solid new plan.
  3. You will encourage aggressive behavior—especially within your own network. Right now, your suppliers and counterparties think that you are a steady repeat customer, and they have to work to keep your business. That changes the minute they learn you are leaving. From that moment on, each of your local suppliers or providers is competing against other Chinese to slaughter the sheep (you) first. It’s nothing personal. You’re just a valuable resource in tough times.

Do:

  1. Talk about expanding your operation within China or overseas. Get that into the conversation early. If you’re in Shanghai, talk about Shenzhen or Chengdu, and Bangkok or Saigon. Even if it doesn’t make much business sense, this will give you a much-needed smokescreen. Don’t overdo it. A comment or two is all you need
  2. Clean house and check your outstanding obligations. People will find out you’re leaving, and you don’t want any last-minute hassles or worse. Chinese lawsuits and debt disputes can get very ugly, and being a foreigner works against you.
  3. Have discreet conversations with legal experts about the best way to do this. If you have employees, leases, and other long-term agreements in place, you want to unwind them as quietly and quickly as possible.

Remember that whatever situation you face now, there’s a good chance you will be back in China or working with people you know there. You have to strike a balance between discretion and secrecy when making plans to move on from China. The only thing worse than “crying wolf” by talking about leaving and not doing it is leaving badly.

  • You have to say goodbye.
  • You have to promise to keep in touch.
  • You have to share what you know about your future plans.
  • You can’t criticize the people or organizations you leave behind (beyond what was normal).
  • You can’t criticize China, the government, the party, or the people. It’s time for the high road.

Your China network stays valuable.

For the rest of your career, people will be asking about your China connections. Protect one of your most important assets by handling your upcoming move with finesse and professionalism.

Good luck in your new home.

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