Once one of its best markets, China is now a major cause of the sportswear giant’s sinking fortunes. Cathy Sparks, a Nike lifer who became head of its China business this spring, faces the daunting challenge of convincing China’s millions of sneaker fans to give the company a second chance.

Nike’s revenue in China and Taiwan is down nearly 30% from its peak five years ago. “Being a large multinational Western brand in the China marketplace no longer is enough to win,” Sparks said. She has decided to end most online stores run by retail partners to boost premium cachet and is rapidly rolling out new made-for-China lines.

Local competitors like Anta and Li-Ning boast faster production and superior technology at lower costs. Sparks is fighting back by restoring Nike’s premium feel, reducing heavy discounting, and largely stopping sales through third-party vendors like Topsports.

While some analysts lauded the move, others said it would hit revenue and cede market share to rivals like Adidas. In June, Nike said average retail discounts in China narrowed, but the turnaround remains uncertain.