The CEO and other senior executives should consider either relocating or making several trips to China just to check how the business is doing. That way, your support and effectiveness as the CEO will be felt and Chen will realize that he needs to reason with you not to impose things even where changes should be respected.
2. Chen has a difficult personality that lead to a moment of disagreement in one of the meetings. Applying self-deprecating humor where you laugh over issues as a way of expressing connection in communication could help you in knowing how to handle the problem.
3. Between you and Chen, there is a standoff that needs to be addressed. There is what you believe is the right thing to do and Chen has another thing to do. Creating an open door policy where you present yourself as presentable will make it easy to communicate to Chen despite the fact that you are the boss.
Chen has proved to be difficult but for a worthy reason. He feels he has built the brand in China alone and opening 23 outlets has been his major achievement. With that in mind, Chen has also tried to provide the China market with what he thinks will sell in China. However, he has not maintained the company’s standards that are important for the establishment’s uniqueness. Foster on the other hand, you are in your first job as a CEO of an already established brand. To address that, Chen and other executives need to be taken for a refresher course in corporate management and brand management. Remember Chen did no go through formal hiring process as well as he could be in his first senior position in the corporate arena. Taking him and other executives for the course will enhance his skills. However, this is likely to raise criticism from Chen and the China market stakeholders. Some may see it as an act of intimidation.