Behind the Strategies and Success of Global Giants Establishing Subsidiaries in the U.S.

Establishing a Subsidiary in the U.S. Strategic Insights from Global Giants

In the wave of globalization, an increasing number of multinational corporations are choosing to establish subsidiaries in the United States to expand markets, access advanced technologies, and enhance brand influence. As the world’s largest economy, the U.S. offers a mature legal system, advanced infrastructure, and a vast consumer market, making it the preferred destination for global companies to build their international presence. But how exactly do these companies successfully set up operations in the U.S.? What are the key strategies and stories behind their success?

1. In-Depth Market Research From Going Global to Going Local

Before entering the U.S. market, companies typically conduct long-term and thorough market research. Take the Chinese tech company Xiaomi as an example. In 2025, Xiaomi announced plans to establish a research center in the U.S., focusing on artificial intelligence and smart hardware development. This decision was not made hastily, but was based on years of understanding American consumer behavior, competitor strategies, and policy environments.

Market research goes beyond analyzing industry trends; it also involves adapting to cultural differences. For instance, many Asian companies have found that U.S. consumers place a high value on brand image, user experience, and after-sales service. Developing a localization strategy in advance is crucial for success.

2. Choosing the Right Entry Mode Joint Venture, Acquisition, or Wholly Owned Subsidiary?

When entering the U.S. market, companies generally face three primary entry modes joint ventures, acquisitions, or wholly owned subsidiaries. Each mode suits different stages and strategic goals.

Take the South Korean automaker Hyundai as an example. In 1986, Hyundai entered the U.S. market by establishing a wholly owned subsidiary, Hyundai Motor America, and quickly built a strong sales network. This wholly owned model gave Hyundai greater autonomy and helped build a strong brand identity.

In contrast, in 2025, CATL Contemporary Amperex Technology Co. Limited, a Chinese battery giant, partnered with Ford Motor Company to build a battery plant in Michigan. Rather than making a direct investment, CATL opted for a technology licensing model. This approach helped avoid scrutiny from U.S. foreign investment regulators while enabling rapid market entry.

3. Compliance and Policy Environment Avoiding Legal Pitfalls

While the U.S. market is open, its legal system is complex, with strict regulations on antitrust, data security, and labor rights. Ignoring compliance issues can easily lead to legal disputes.

In 2025, a Chinese tech company’s U.S. subsidiary was forced to delay its IPO after failing the review by the Committee on Foreign Investment in the United States CFIUS. This incident once again reminded multinationals that understanding and respecting the local regulatory environment is essential when setting up in the U.S.

To mitigate risks, many companies hire specialized legal teams to assist with company registration, tax planning, and compliance reviews. Building strong relationships with local industry associations and institutions is also a key strategy for navigating policy risks.

4. Talent Strategy Building a Localized Team

Talent is the core asset in global operations. Many companies adopt a hybrid talent strategy-retaining core management at headquarters while hiring local executives and professionals in the U.S.

For example, Japanese conglomerate SoftBank often retains the original management teams of U.S. tech startups it invests in while providing financial and strategic support. This approach helps maintain cultural continuity and enhances the sense of belonging and execution power among local employees.

The U.S. also boasts a world-class higher education system and a deep talent pool, especially in tech hubs like Silicon Valley and Boston. Establishing RD centers or innovation labs in these areas can help attract top-tier technical talent.

5. Brand Building and Marketing Telling a Local Story

In a highly competitive market like the U.S., building brand awareness and trust is a major challenge. Take the Chinese electric vehicle brand NIO as an example. When it officially entered the U.S. market in 2025, it did not rush to launch products. Instead, it gradually built brand influence through experience centers, participation in international auto shows, and collaborations with local environmental organizations.

This soft-landing strategy helped NIO establish itself as a premium, eco-friendly brand in the minds of American consumers. Social media marketing, partnerships with local influencers KOLs, and community engagement have also become effective tools for enhancing brand affinity.

6. Continuous Innovation and Flexibility Adapting to Market Changes

The U.S. market evolves rapidly, with diverse consumer demands. Companies must remain flexible and innovative to stay competitive-even global giants cannot afford complacency.

German retail giant Aldi, for instance, initially struggled with cultural adaptation in the U.S. But it quickly adjusted its strategy by introducing more localized products and optimizing store layouts. Today, Aldi is one of the leading discount retailers in the U.S., proving that ongoing user feedback and continuous product and service optimization are essential for long-term success.

Conclusion A Strategic and Long-Term Commitment

From market research to regulatory compliance, from talent strategy to brand building, the process of establishing a subsidiary in the U.S. is a comprehensive and long-term strategic endeavor. It tests not only a company’s financial strength and management capabilities but also its ability to understand and adapt to the local market.

Ultimately, the most successful companies are not necessarily the largest or most powerful, but those that best understand how to tailor their strategies to the local environment.