Article at a glance:

What executives are asking about China: From entry to execution

• Multinational companies are shifting gears in China, turning away from entry strategies and focusing instead on execution. The head of McKinsey's offices in China takes a look at some of the concerns arising in this new environment.
• Innovative approaches to recruiting and retaining managers are needed to counter expected staff shortages. Along with distribution and marketing, recruitment will also pose a challenge for global companies as they reach beyond China's large cities.
• China has targeted innovation as a national priority, and there are early signs that some domestic companies are becoming more creative. Foreign companies should encourage this trend and find ways to benefit from it.
• As the importance of personal contacts begins to fade, a systematic approach to government relations is becoming a necessity. Many companies still face local corruption, although the situation is improving.