(Yicai) March 27 -- More than one-third of companies in China plan to enlarge their workforces this year, with the intention to scale up even more pronounced among domestic firms, according to the findings of new survey by Michael Page.

Thirty-six percent of businesses operating in China intend to up their staffing levels this year, the 2026 China C-Suite Confidence Insights Report published yesterday by the UK-based global recruitment agency and consultancy revealed. Forty-one percent plan to maintain the status quo while 16 percent envision job losses.

The report aggregated the results of one-on-one interviews conducted with 304 executives across the Chinese mainland, Hong Kong, and Taiwan between late last year and early this year.

Forty-eight percent of domestic companies -- Chinese firms operating only in the home market -- intend to add to their payrolls this year, a sign of optimism around local market prospects, the report indicated. Twenty-four percent plan no changes.

Chinese multinationals are also relatively confident, with 40 percent aiming to swell headcounts and 41 percent anticipating no changes. Foreign multinationals in China are much more cautious, however, with only 29 percent aiming to hike staffing levels and 48 percent looking to keep them unchanged.

The main hiring driver is the launch of new business lines and projects, underscoring continued investment and innovation, the report said. Other key factors include overall business expansion, strong operating performance, transformative initiatives, organizational restructuring and overseas expansion.

When hiring leadership, businesses mainly look to a candidate’s “ability to drive the business,” the report said. “Problem-solving skills” and a “growth mindset” follow closely behind, highlighting the need for talent who can drive growth, navigate complexity, and steer performance.

Conventional leadership attributes, including “commercial acumen,” “communication skills,” and “strategic thinking,” remain highly prized, given their importance in influencing stakeholders, making sound decisions, and aligning teams with both short- and long-term objectives.

Sales Drive

The strongest hiring momentum is seen in sales, where 36 percent of respondents anticipate an increase. “Whether you are introducing new products and services or evolving your existing products and services, of course, you need great salespeople to drive that,” Rupert Forster, senior managing director for China at Michael Page, told Yicai yesterday.

Forster noted that 22 percent of domestic firms are looking to invest overseas for the first time this year, so the demand for sales talent is being driven both by domestic growth (“in China for China”) and by the need to support international expansion.

Cited by 57 percent of respondents, scaling up domestically has become the dominant strategy. Thirty-one percent intend to grow through international expansion, and a similar proportion aim to cut costs and improve efficiency.

Chinese businesses have entered 2026 with the strongest confidence in the local market and, far more than other groups, a clear focus on expanding within China. Chinese multinationals are the most outward-looking, leading in overseas expansion plans while also prioritizing efficiency gains. Foreign multinationals remain the most cautious, with cost control as their primary focus.

Forty-five percent of firms have already hired or are planning to hire talent to support their global ambitions, reflecting strong momentum in building talent pipelines for overseas markets.

The typical approach is to recruit Chinese professionals with overseas market experience who are based domestically. At the same time, international hiring remains important. Forty-eight percent recruit Chinese talent abroad, while 30 percent hire foreign professionals with Chinese language skills or China-related experience.

AI Skepticism

Companies’ top AI-related priority is to “deliver incremental improvement focusing on driving operational efficiency,” the report showed. But the share of businesses citing this objective fell to 61 percent from 67 percent last year.

Notably, the share of firms reporting no change in AI-driven strategic priorities jumped to 22 percent from just 2 percent in 2025, suggesting that many have already defined their AI directions or are becoming more concerned about the return on investment from the technology.

This shift likely reflects growing skepticism that AI investments may not have delivered tangible returns yet, Forster said.

There is also a change in how AI is being used, according to the report. The share of companies using AI to “develop new products or services” fell to 17 percent from 24 percent, while the focus on providing “personalized yet scalable customer experience” rose to 16 percent from 6 percent.

AI investment is expected to remain at an early stage this year, with most companies planning low- to mid-level spending. Sixteen percent indicated no AI investment due to unclear returns or budget constraints, while 42 percent indicated only limited spending. Just 7 percent said AI has become a core pillar of business strategy.

AI adoption varies widely by function. Technology and information technology lead by a wide margin of 50 percent, followed by research and development at 36 percent, leadership at 27 percent, and finance and marketing at 26 percent each. Human resources remains a relatively limited area for AI use, with adoption at 18 percent.

In recruitment, AI is effective in the early stages of the process, particularly in candidate sourcing and initial screening, Forster said. “When you're looking at large data sets, and you want to cut them down in an efficient manner, AI is definitely going to play a role," he said. "But when it comes to the downstream part of the hiring, AI will struggle.”

Editor: Martin Kadiev