From “Going Global” to “Growing Local” : Prof David A. Palmer Explores the “Path of Trust” for Chinese Companies in Global Markets at HKU EMBA Lecture

Hong Kong, 15 April 2026 — The HKU EMBA programme at The University of Hong Kong welcomed Professor David A. Palmer, Professor in the Department of Sociology and Director of the Global Society and Sustainability Lab, for a special lecture titled “Breaking Invisible Barriers: Winning the Trust Game in Global Markets.” Addressing senior executives and business leaders, the lecture examined the increasingly important cultural and social dimensions of international expansion, and how Chinese companies can move beyond simply “going out” to truly becoming part of the societies they enter.

During the lecture, Professor Palmer noted that one of the greatest challenges facing Chinese companies overseas today does not stem from products, technology, or capital, but from the often unseen barriers of culture, religion, community expectations, labour values, and social trust. Many companies encounter resistance in overseas markets not because their capabilities are lacking, he explained, but because they fail to understand the deeper social logic of the communities in which they operate. In today’s global economy, he argued, companies are no longer competing only for market share; they are also competing for trust. Sustainable international success increasingly depends on whether a company can build authentic and lasting relationships with local people.

To illustrate this process, Professor Palmer drew on the Chinese classic Journey to the West as a metaphor for global business expansion, describing internationalization as a modern-day “pilgrimage for wisdom.” He suggested that companies need not only strategic vision, but also adaptability, local sensitivity, and institutional resilience. More importantly, he emphasized that businesses should not rely solely on macro-level policy analysis. They must also learn to listen to voices at the community level and understand the lived realities of local society. He described this shift as a movement from being an “outsider” to becoming a “co-builder” — an organization that participates in the social fabric of a place rather than remaining a distant investor.

Drawing on years of field research across countries involved in the Belt and Road Initiative, Professor Palmer shared case studies from Asia, Africa, and the Middle East that demonstrated how social misunderstanding can become a major business risk. He observed that some companies continue to depend primarily on formal risk management systems, while overlooking the informal networks of trust that shape local acceptance. By contrast, the most successful companies are often those that respect local culture, engage communities early, and transform the social dimension of ESG into a source of long-term strategic value. In his view, ESG and localization should not be seen merely as compliance obligations, but as opportunities for deeper organizational transformation.

Participants described the lecture as both intellectually stimulating and highly practical. Organizers from the HKU EMBA programme noted that Professor Palmer’s ability to connect cross-cultural scholarship with real-world corporate experience offered executives a valuable new framework for understanding international growth. His remarks encouraged participants to see globalization not simply as commercial expansion, but as a deeper journey of learning, adaptation, and leadership.

At a time when artificial intelligence, geopolitical uncertainty, and social fragmentation are reshaping the global business environment, Professor Palmer’s message offered a timely reminder: the future of globalization is not only about entering new markets, but about understanding the people within them. In an increasingly interconnected world, those who can build trust across cultural boundaries may be the ones best positioned to thrive.