This paper investigates the intercultural competence of Chinese employees in MNEs, with “going global” Chinese firms and foreign firms in China that have been compared and analyzed. The results indicate apparent differences in positions from Chinese employees of the two kinds of firms, and different intercultural communication situation and competence demands they deal with. The research results indicate that, due to huge differences in the internationalization and indigenization level among “going global” Chinese firms and foreign firms in China, Chinese employees in former firms encounter more challenges and competence gaps than those in latter ones. Based on the results, we classify the internal intercultural communication situations facing Chinese employees into five parts and external intercultural communication situations into three parts, and discuss intercultural communication challenges and competence gaps confronted by Chinese employees. To sum up, conclusions of this paper enrich international business theories, and offer some guidelines to cultivate intercultural communication competence of employees of MNEs in emerging markets.