Across sectors—from luxury and retail to technology, manufacturing and finance—recurring missteps reveal systemic misunderstandings that Western firms must address. Western companies that separate social media from transactions appear clunky by comparison. Without strong local HR practices, Western companies may hemorrhage talent or inflate payrolls, reducing competitiveness. A more sophisticated China strategySo how can Western companies avoid the traps that have ensnared predecessors? China will remain both an opportunity and a challenge for global companies.