Transformational leadership, though widely studied in the literature, lacks sufficient contextual analysis of its essential leadership process and differences in characteristic behaviors under different cultural settings, especially in the Asian context. This research, through qualitative data collected from eight Chinese organizations (four state-owned enterprises and four private-owned enterprises), empirically examines the Western transformational leadership theory in China. Moreover, by studying Chinese leaders’ daily behaviors, we develop a transformational leadership theory in the Chinese business context. This research contributes to contextualizing transformational leadership behaviors and providing deep insights into the Chinese transformational leadership process from a philosophical perspective. Findings can be applied to both Chinese and Western management studies as well as the World of business practice.