This paper reports on skills shortages, recruitment and retention issues that Australian multinational corporations (MNCs) based in China face when staffing their foreign operations, with both managerial and non-managerial staff. A qualitative research methodology was used, investigating 20 organisations as case studies. It was found that Australian MNCs experienced a 'war for talent' in their Chinese operations. This meant that it was difficult for them to find and retain skilled staff. For managerial positions, Australian MNCs used an ethnocentric staffing model; however, they had issues recruiting willing expatriate managerial staff for China. It is recommended that Australian MNCs implement enhanced talen-management programs to recruit and retain the skills and talent they need for the Chinese market.