In this study issues and challenges faced by Australian enterprises in attracting, development and retention of talent in China. Based on this study it can be said that there is gap due to huge demand and the supply is low of the talent that the enterprises require for their operation in China. Some of the factors that have been identified in the article that can be quite beneficial for the business in China include employing the Chinese nationals in senior positions as the companies are benefitted by the networking that is done by these officials. For this purpose overseas Chinese returnees, students or the workers can be employed for this purpose but it is difficult to retain them as the mindset and values of these people is quite different from that of the country of origin of the enterprises. Further the Parent Country Nationals (PCN) employed by the company found it difficult to adjust in Chinese environment and thus this resulted in huge impact on the business. Another important point is that the Chinese people put more emphasis on compensation rather than work culture and non monetary benefits, Further the geographical presence of the enterprises also impacted the retention (Chen and Francesco, 2000). This is to say that it is easier to retain people in Tier III cities rather than Tier I cities as there are fewer options that are available there (Melvin, 2001). Thus it can be said that the psychology of the Chinese people is to gain more from the MNEs by having central focus of the salaries offered by these MNEs. However the level of effort that is been put by the Chinese people is huge and thus can be considered to be hard worker. It can thus be considered to add value to the non-monetary benefits although such practices are not acceptable by the Chinese employees. It has been stated in the article that non monetary benefits are the western management techniques which may not be successful in China. Thus such differences in Western countries and also of Australian MNEs also result in low retention of talent by non Chinese enterprises.