This article evaluates the development of Chinese enterprise unions, drawing on case‐study evidence from foreign‐invested enterprises in the Pearl River Delta. Findings suggest that it was difficult for such employers to resist the establishment of an enterprise union. However, they generally sought to co‐opt the union to meet organizational needs. Management strategy was critical in shaping the union's role, and our evidence suggests that this was influenced by factors such as home‐country policies, the expectations of overseas customers, management ideology and pressures from the ACFTU and the Party‐State to comply with the requirement for a union. The implications for the role of unions are evaluated.