Abstract
With the expansion of Chinese investment in Central Asia under the Belt and Road Initiative (BRI), effective human resource localization has become critical to the success of Chinese multinational enterprises (MNEs) in the region. This study focuses on Kazakhstan, Central Asia’s largest economy, to investigate the specific challenges Chinese MNEs face in this process. Drawing on cross-cultural management, human resource localization, and high-performance work system (HPWS) theories, this research analyzes empirical data from a survey of 50 Chinese firms operating in Kazakhstan. The findings reveal that cultural and institutional barriers, rather than technical ones, are the primary obstacles, including cultural integration conflicts, local talent shortages, and regulatory compliance burdens. A strong positive correlation (r=0.72, p < 0.01) and causal relationship were confirmed between workforce localization degree and firm performance, indicating that successful localization helps firms extract greater value from overseas investments. A case study of CNPC’s operations further illustrates how adaptive management models can mitigate these barriers. This research provides actionable insights for managers and policymakers, fills the research gap on Chinese MNEs’ HR localization in Central Asia, and extends the cross-cultural application of HPWS theory.