Drawing on the combined insights of experts from the China-Britain Business Council (CBBC) and Yingke London, this guide explores the key considerations for hiring in China, from choosing the right city and recruitment channels to navigating contracts, compliance and employment law.

Location: Where and How to Hire

When it comes to recruitment in China, geography is everything. Each region offers a distinct ecosystem of talent, industry focus, and cost. Tier-1 cities such as Beijing and Shanghai are obvious choices, offering access to top-tier professionals, international schools, and extensive infrastructure – but at a premium. Beijing serves as the political and R&D hub, which is particularly attractive for sectors like biotech and AI, while Shanghai thrives in finance, trade, and international business, boasting a bilingual workforce and global outlook.

Venture south, and cities like Guangzhou and Shenzhen (part of the Greater Bay Area) lead the way in manufacturing and tech innovation. Shenzhen, in particular, has earned the  reputation as China’s Silicon Valley, brimming with specialists in AI and hardware. “Shenzhen has a large pool of tech talent as its booming tech industry – from AI to hardware – draws them in,” notes Anne Zheng, CBBC’s Service Manager.

Tier-2 cities such as Chengdu and Hangzhou offer a different value proposition such as lower living costs, robust digital economies, and increasing numbers of young, educated professionals. As CBBC HR Director Ariana Zhang points out, “Cities in China are tiered. Tier one like Beijing and Shanghai are well known, but tier two such as Chengdu and Hangzhou also attract foreign firms, each with unique perks.”

Choosing the right city also informs your recruitment strategy. Online job portals such as 51job, Zhaopin, and Liepin are widely used for mid-level roles and offer cost-effective reach. However, foreign firms without a local business licence may find these platforms tricky to navigate independently. “Posting job ads on portals like 51job is cost-effective, but foreign firms without a local license need a facilitator like CBBC to navigate regulations,” says Ariana Zhang.

For senior or specialist hires, international or local executive search firms (e.g., Korn Ferry, Michael Page) are popular, though they typically charge 20-30% of the successful candidate’s first-year salary. Meanwhile, WeChat remains a useful tool for employer branding, and internal referrals can be effective once your team reaches scale.

CBBC often supports British companies through the full interview process – from screening CVs and testing English fluency to hosting in-person interviews and running background checks. Ariana Zhang shares one method: “We ask candidates to do a short English presentation to confirm their skills. A local partner like CBBC helps verify details that are hard to assess remotely.”

Contracts and Compliance: Getting Enrolment Right

Once you’ve found the right people, it is essential to formalise employment relationships in line with Chinese labour law. Written contracts must be issued within one month of employment starting. Most new hires begin on fixed-term contracts (typically 1-3 years), with probation periods determined by contract length. After two renewals or 10 years of service, open-ended contracts become mandatory – a development that can significantly impact dismissal flexibility.

“The labour law tends to protect the individual’s interest more, making it difficult for employers to cancel open-ended contracts,” reminds Sandra Xiang, a legal expert at Yingke London.

Alternative models, such as labour dispatch contracts, can be used for temporary roles or for foreign representative offices, but come with their own restrictions and are best suited for short-term staffing.

Onboarding, too, should not be overlooked. An effective staff handbook which is tailored to Chinese norms and translated accordingly, helps avoid confusion around entitlements such as sick leave, overtime, and public holidays. GDPR and data protection training must also be factored in. “Some policies differ in China – like public holidays, sick leave, and overtime pay. A clear handbook avoids misunderstandings,” says Anne Zheng.

Understanding Employment Models: EOR vs. Entity Setup

For companies looking to build a long-term presence in China, establishing a legal entity allows for full control over hiring and operations. However, this comes with administrative overheads and compliance responsibilities. From anti-discrimination clauses in job adverts to mandatory social insurance contributions, the legal landscape is rigorous. As Sandra Xiang explains, “Job postings must avoid discrimination. For instance, a company previously rejected a qualified female candidate, which led to fines and a public apology.”

Alternatively, an Employer of Record (EOR) model offers a nimble route into the market. In this arrangement, a third-party provider officially employs your staff while you manage their day-to-day work. It is a helpful interim solution for firms not ready to establish a local entity. “EOR providers handle compliance, but firms must clarify it’s a service relationship – not employment – to avoid joint liability,” Sandra notes.

Planning for Success

Hiring in China is not just about ticking boxes – it is about understanding the cultural, legal, and economic dynamics that shape the workforce. Tier-1 cities offer deep talent pools but come at a cost, while Tier-2 cities present rising opportunities for cost-effective growth. Using the right job platforms and working with local partners makes the process smoother and more effective. Above all, compliance – from contracts to onboarding policies – is non-negotiable.

As Anne Zheng summarises: “Understanding China’s unique hiring practices is crucial. Local support, like CBBC’s Launchpad, simplifies the process.”

To explore tailored support for hiring in China, contact the CBBC team at enquiries@cbbc.org

About the Authors

Anne Zheng is Service Manager at CBBC and leads the Launchpad programme, helping British companies establish operations in China.
Ariana Zhang is CBBC’s HR Director and an expert on recruitment and employment strategies in China.
Sandra Xiang is a legal advisor at Yingke London specialising in Chinese labour and employment law.

The post How to Hire and Build a Team in China appeared first on Focus - China Britain Business Council.

China’s labour framework and the underlying HR complications impact foreign investments in the local economy. Finding and hiring staff in China is a delicate and complex process, especially for foreign SMEs, which are less likely to look at putting in place a legal or HR in-house team of counsels, especially in the start-up phase.

Can you hire staff in China from overseas?

Foreign entities located overseas are not allowed to directly hire employees in China, so UK companies indeed need to establish a representative office or a subsidiary in China. The most popular option for foreign companies is a wholly foreign-owned enterprise (WFOE). It’s worth noting that whenever entity incorporation seems like a step too far for an initial presence in China, UK companies can engage a so-called “employer of records,” i.e., a licensed provider that will hire employees under its name in exchange for a fee calculated on their salary’s total company cost.

Best practices for recruitment in China

Global headhunters have a strong presence in the Chinese market but are usually only engaged for middle to senior and high-level management positions given their databases and the fees involved (usually 20% of the candidate’s yearly gross). Companies usually dedicate in-house recruiters to managing online HR platforms (Job.cn, Zhaopin.com, 51job, etc.), where candidates and job-seekers directly upload their CVs and apply for job postings. Recently, social media channels and apps (especially WeChat official accounts) have created a direct link between employers and candidates, especially for companies in the consumer, luxury and fashion industries, or those that are well known in their sector. 

What you need to know about Chinese employment contracts 

Firstly, companies should note that written employment contracts must be in China’s official language: Mandarin. According to the provisions of Article 19 of China’s Labor Law, these are the terms to be included in employment contracts:

• Duration and type
• Description of duties with related protection and conditions
• Remuneration and benefits
• Discipline and conditions for termination
• Liabilities for breach of the employment contract.

Paying compulsory provident funds 

China’s wages are coupled with compulsory provident funds (five main categories), a government-run housing fund for rent and mortgage benefits, and individual income tax declaration liabilities, representing an additional burden on the employer’s monthly declarations. Social contributions for work-related injuries, pensions, maternity leave, unemployment, and medical insurance provided by the state are also capped depending on the previous year’s average salary published every summer by each municipality.

The hidden costs of hiring procedures

Training and induction programmes are usually expected by candidates, especially the youngest generation, who have more detailed expectations for their work commitments. Employers wishing to implement non-compete clauses should budget for the related remuneration that becomes a must when these are put into use. The minimum wage connected to non-competes is usually 30% of the employee’s monthly salary but candidates are free to negotiate that amount up to their liking and can’t be forced into similar obligations.

China’s evolving working culture 

Since the appearance of unicorn tech companies and internet giants, China has been noted for a culture of unpaid overtime that clashes with official regulations; under official Chinese law, employees can work a maximum 44-hour workweek and any work beyond that requires extra pay for overtime. There is a high turnover rate in the job market; candidates that change jobs after three to five years of work experience are seen as having a relatively reasonable job hopping rate but it can be much more frequent. It is worth noting that GenZers and young talents are more likely to frequently switch roles, but employers can combat this by providing a positive working culture and good advancement opportunities.

How do commissions and bonuses in China differ from the UK?

The majority of Chinese labour contracts are usually based on 12-month arrays with a clause for discretionary bonuses typically set in the months in the proximity of Lunar New Year festivities (January-February). Multinationals keep 13 months’ wages with performance bonuses and commission schemes on top, even though local regulations don’t prescribe fixed arrangements on this matter. The main difference is that 13th-month bonuses and the like are considered part of the employee’s salary and represent a fixed commitment from employers, whereas bonuses and commissions are discretionary.

Hurdles to recruitment by foreign companies

Foreign-invested enterprises should have two systems in place for recruitment: 1) background checks, including prior records of labour arbitration cases with other employers, and 2) mental health check-ups due to the fast pace of life and work in China’s major cities. Close attention should also be paid to candidates’ interpersonal relationships while handling tasks under pressure and their ability to integrate with existing teams as some companies may encounter highly educated Chinese returnees who are fluent in English but tend to feel easily disappointed with their careers versus their investment in studies abroad. As a general principle, the potential negative impact on the overall staff by candidates who have not been thoroughly committed and engaged outweighs issues arising from employees not skilled or trained for the set of tasks they’ll need to look after.

The regional divide in HR issues

In addition to the differences in the social insurance provident funds mentioned above, welfare policies such as sick leave, maternity leave and marriage leave differ from city to city. The overall process and regulations for terminating labour relations with employees also follow different precautionary measures and practices according to China’s local courts and arbitration committees, and companies should pay attention to these divides. Finally, foreign enterprises should implement internal SOPs for non-resident workers to apply for household registration and residence permit points in the municipality where they operate, as these create additional requirements for the payment of social security and the issuance of corresponding documents during the application process.

Letting go: The challenges of firing

The process of labour relationship terminations should be based on performance appraisals and individual business cases. HR teams will need to prepare different supporting documents for different cases, but severance pay should be put forward based on China’s Labor Law and its clauses on unilateral and mutually agreed termination. The usual set of causes ranges from dissatisfactory performance during probation, irregular or false attendance records, objective major changes in the company’s business outlook, and major disciplinary violations. National laws and regulations do provide for special labour protection and treatment for female employees during pregnancy and workers who have experienced labour-related injuries. In most cases, companies can avoid lawsuits and arbitration through severance and compensation packages, helping them to convey an employee exit without any repercussions on their main operation and enterprise credit.

This article is part of a series on exporting to China. See all the articles in the series below.

Part 1: How to conduct market research
Part 2: Protecting your trade mark
Part 3: How to choose the correct route to enter the China market
Part 4: The dos and don’ts of choosing a distributor
Part 5: How to find and hire staff in China

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s Launchpad service gets your company boots on the ground in China quickly and cost effectively.

The post Finding and hiring staff in China appeared first on Focus - China Britain Business Council.

As the rhythms of daily life in China return to normal, consumption is expected to recover at an accelerated pace. At the same time, scientific and technological innovation and green transformation are driving investment in manufacturing. China’s economic growth forecast for 2023 has improved significantly, and the Chinese economy is expected to become the main engine of global economic growth once again.

Given this context, talents are anticipated to become critical resources for companies of all sizes, playing a significant role in determining their ability to achieve success during China’s economic recovery.

Here, we outline several essential recruitment strategies that companies can implement to attract top-tier talent.

1. Offline and virtual job fairs

Job fairs are an effective channel for recruitment, especially for companies that need to hire large numbers of people.

With the rise of remote work and online communication, job fairs can be held virtually. These events can be hosted on platforms like Microsoft Teams, allowing job seekers to explore opportunities, network and interview from their own homes.

However, with travel restrictions and other Covid-19 control measures mostly lifted, job fairs can once again be held offline. This facilitates more candid and direct communication between the two sides, enhances understanding, and avoids the potential negative outcomes of virtual interviews.

2. Skills-based hiring

In the post-Covid era, many industries will need to go through major changes to their business structures, supply chains, commercial targets and business strategy. Against this background, skill-based hiring can help companies find the best-matched talents for their success during the economic recovery period.

Unlike traditional recruitment, which focuses more on candidates’ qualifications such as education, career background and certificates, skills-based hiring focuses more on the skills of candidates that are essential for handling the job and their ability to adapt to new challenges.

This approach can help companies attract a more diverse range of candidates and ensure that businesses have the right talent pool to meet changing demands.

3. Upskilling and reskilling programmes

As businesses recover from economic downturns and face significant gaps in in-house talent capacity and knowledge, upskilling and reskilling programs can be a valuable investment for companies. By providing current employees with the necessary skills to succeed in changing industries, businesses can boost employee morale, increase retention rates, and ensure they have the talent required to succeed.

From an enterprise perspective, staff training can improve the capabilities of employees and the decision-making abilities of leaders, strengthen collaborative working relationships at all levels, promote operational quality and efficiency, and help the enterprise grow more efficiently and strategically.

For employees, effective training can stimulate their potential, improve their adaptability and cultivate a sense of belonging to the company. It can also help to improve their knowledge base, confidence and enthusiasm for their work.

4. Referral programmes

Referral programmes are a popular recruitment strategy for companies in China. Companies can incentivise their current employees to refer qualified candidates for job openings. This can be done by offering bonuses or other rewards for successful referrals. Referral programs are a great way to find top talent quickly while also boosting employee engagement and retention.

5. Collaborative hiring

Collaboration between companies and recruitment agencies can help to create shared talent pools, with agencies providing access to a range of skilled candidates. This can help businesses quickly and efficiently identify and hire the best talent while reducing the costs and resources associated with traditional recruitment.

In recent years, collaborative hiring, especially headhunting, has become increasingly popular in China and is frequently chosen by enterprise managers. This is mainly due to the following advantages:

Strong level of confidentiality: One of the most basic rules of the headhunting industry is confidentiality, which includes not publicly disclosing information from clients and candidates.

Time- and cost-efficient: Headhunting firms usually specialise in certain industries, and consultants have long-standing contact with the best people in those industries. It can take years and a lot of networking to develop these types of connections. Headhunting consultants also have professional talent search technology and databases, which are more efficient than other recruitment methods.

High-quality candidates: Headhunting consultants have many years of experience in human resource management and can conduct scientific and effective interviews. Through background investigation methods, such as CV verification and personnel investigation, they can repeatedly select candidates who closely match the job requirements.

Lowered risks: The accuracy of headhunting increases the rate of successful recruitment, which means that companies usually do not need to hire again in the short term for the same position. Additionally, companies typically only make full payment for headhunting services after the talent has successfully passed their probation period, which not only reduces recruitment costs at the outset, but also mitigates the risk of unsuccessful recruitment due to unforeseen factors during the onboarding process.

Value-added services: By collaborating with headhunting companies, in-house HR teams have access to industry trends and can receive authentic feedback from candidates indirectly through the headhunting process. Furthermore, once recommended candidates are successfully onboarded, headhunting companies offer a range of services to help them quickly acclimate to their new position, maximise their skills, and drive value for the company.

Identifying suitable candidates who can help achieve business objectives and growth targets is a major challenge in the Chinese market. Without the necessary skills, approaches, and a dependable recruitment partner, many companies can spend significant time and resources without successfully securing the talent they need. To maintain a competitive edge in talent acquisition, companies are encouraged to adopt the latest and most effective recruitment strategies.

This post was originally published by Dezan Shira and Associates’ China Briefing as ‘Top recruitment strategies in China in the post-Covid Era’

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In October 2021, LinkedIn announced that its main platform would be closing in China, citing a challenging operating environment. In China, LinkedIn will be replaced with a new jobs-only app called InJobs. InJobs will maintain LinkedIn’s job search features, but will remove all social networking functions, such as creating posts and sharing articles.

The move to create a separate app solely for China users comes as no surprise in light of Beijing’s recent crackdown on the tech industry. In many ways, LinkedIn’s new China strategy mimics the path taken by ByteDance, which created two separate apps, TikTok (for global users) and Douyin (for Chinese users). The introduction of multiple new rules for data security, privacy protection and compliance requirements in China has made it difficult for LinkedIn to continue to operate in the current market environment. For example, in March 2021, the platform temporarily paused new user registrations to ensure compliance with local legislation.

While LinkedIn has insisted that it is still committed to helping recruiters in the Chinese market through InJobs, foreign companies would be wise to start paying more attention to Chinese recruitment and networking platforms in order to continue to effectively communicate with Chinese professionals and connect cultures and people. “The Chinese adoption of western social media has always been fraught with complex challenges. The LinkedIn professional/social model has also been difficult to compete with globally and we’ve seen the likes of Facebook, Google and Alibaba attempt similar models with very mixed levels of success. With all of the professional networking features that LinkedIn offers there is likely to be a gap in the market in China,” James Buchan, managing director of digital agency Zudu, tells FOCUS.

Online recruitment platforms in China

LinkedIn is certainly not the only popular recruitment and networking platform in China. While many Chinese people, particularly those working for foreign companies with offices in China, found their jobs via LinkedIn and use the site to contact colleagues abroad, local platforms such as Maimai, Zhaopin, Liepin and 51Job have attracted strong user bases in recent years. For example, according to the research firm Analysys Qianfan, Maimai has more than 4.8 million monthly active users (MAU) – compare that to LinkedIn’s 903,900 MAU.

However, these sites are China-centric and there is concern that they may lack LinkedIn’s ease of connecting with colleagues and companies outside the country. Compared to LinkedIn, these platforms do not have global reach and are typically favoured by white-collar workers in the tech industry in China. Nevertheless, there is uncertainty as to how InJobs will continue to promote global business opportunities, so it is vital for the purpose of recruitment in China that Western companies use these alternative sites to post their job ads.

In addition, these Chinese platforms do still offer social networking and content features, which foreign companies may need to use to share their thoughts around businesses and industries. As Arnold Ma, CEO of digital content agency Qumin notes, “A lot of Western companies use LinkedIn as part of their corporate comms. Without it, it may be tough to compete with Chinese brands/companies for the best people, i.e., companies may find it hard to build credibility.”

Networking in China without LinkedIn

It is difficult to predict the long-term impact of LinkedIn’s retreat from China. Nevertheless, going forward it is important that foreign companies investigate alternative Chinese social media and recruitment platforms and open accounts on Chinese websites to maintain positive communication. “Cutting the LinkedIn shackle could also be a benefit,” says Ma. “It may force foreign companies in China to really invest in local talent searches, for example, through university recruitment days and internships as many do in the West. Further, it could encourage companies to be braver with their corporate comms and adapt ‘Chinese flavour’ content strategies”

After LinkedIn was blocked by Russian authorities back in 2016, Russian people turned to Facebook to discuss business matters. In China, many business people have already turned to the omnipresent WeChat to discuss business matters.

It is unlikely that LinkedIn’s decision will be detrimental to global networking with China in the long run. “Successful intercultural communication takes place when there is in-depth meaningful exchange and real conversation,” notes Catherine Xiang, programme director of the BSc International Relations and Chinese at LSE.  “People will continue to network at international conferences and global events and on work-related business trips. These will continue to offer opportunities for people to connect and interact. Perhaps the scale will be limited [compared to] LinkedIn, however, the quality will be better.”

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For businesses looking to enter the Chinese market, what are the first things they should consider when it comes to hiring?

Without a doubt, employers should ensure they have carried out a background or reference check before taking anyone on. Legally speaking, companies need to ensure they are legally able to employ staff directly in China, which, according to China’s labour law, means a fully registered legal entity in China. This could be a Wholly Foreign-Owned Enterprise (WFOE), a Joint Venture or a representative office. But, hiring staff from overseas or a UK registered firm directly is breaking the labour law. Alternatively, they can choose a licensed HR vendor to hire these staff until they have a legal entity fully established.

How easy is it to hire staff before a WFOE or other entity is established?

It’s illegal to hire staff directly before you have a WFOE or other form of legal entity but it is quite easy for a licensed third party to give support with the hiring and to organise the related paperwork. Talent Spot, as a licensed vendor, has actually helped quite a few UK brands entering the China market with this solution before they have an entity established.

What mistakes do many foreign companies make when recruiting?

Hiring staff without checking references is the most common problem. Staff are often hired directly after meeting people at events but it is essential to speak to their previous employer, especially for candidates who have not worked for international firms or who have come from state-owned companies. Also, it is worth noting that if the foreign company is new to the market they will need to pay around 20 percent above the market average to attract good talent.

Hiring staff without checking references is the most common mistake foreign companies make.

China has different HR laws, customs and cultural rules to the UK. What are the most important things to be aware of?

China’s labour law is very complicated and favours the employee. It is common for staff to have at least a three-month probation period and if the candidate doesn’t pass this probation period then the contract termination period needs to start before the period ends. Otherwise, they are classed as full-time staff and it is very challenging to terminate a full-time contract.

It is best to avoid signing an open-ended labour contract and most should have a fixed-term contract as the termination procedures are incredibly complicated once the probation period has passed. It is very difficult to sack a member of staff, unlike in the UK or US.

For example, I have a British client that had two employees causing trouble over their termination. Luckily, the employees’ labour contract was signed with Talent Spot under the contract staffing service, so Talent Spot was regarded as the legal employer and therefore we could deal with them, arrange compensation and eventually get the paperwork signed peacefully.

Ensure they have a competitive salary, provide regular training, and have transparent rewards and punishment system

What are the current HR challenges in China? 

HR in China has many obstacles but the two points that are important for newcomers to understand are the social contributions and salary management.

Unlike 20 years ago when labour costs in China were relatively affordable, today there is a completely different story. Salary levels and the cost of employment for employers is high by international standards, especially in first-tier cities, and salaries are still very much the main reason top talent will work with a company. Competition is fierce and salaries can be surprisingly high.

The cost of social contributions in China is also very high and shocks many international companies. These vary from province to province so, as the saying goes in China, treat every province like its own country.

Do you think the millennial generation has a different work ethic or expectations to the older Generation X?

The younger generation has totally different expectations than the older one. In China, the ‘born-in-the-80s’ generation, are now considered the ‘older generation’ whereas the ‘born-in-the-90s’ generation are the ones with more free will and are less interested in job security and are harder to train. They may resign at any time for any reason and expect to be promoted with a good title and high salary very quickly. The good traditional values have somehow been lost.

Therefore, recruiting and training the millennial generation is a common headache for HR and business owners – though of course there are good ones out there.

What top tips do you have to keep and retain good staff?

• Ensure they have a competitive salary and are given the opportunity for promotion regularly.
• Provide regular training to ensure the best staff can learn new skills.
• Have a transparent policy or guidelines for your rewards and punishment system.
• Always make sure to enact these policies when goals have been reached or rules have been broken.
• If staff still don’t meet their key performance indicators after a first warning them terminate their contract. Don’t keep them on, regardless of their excuses, because they will be a bad influence on the good staff and drag others down.

How much does a company succeed or fail on its staff in China and do you have any examples of this?

I believe the success or failure of any company is mainly dependent on its staff. After all, people are the major factor; your staff are the core and determining factor of your company. Neither the products or the service you provide, nor the amount of investment you receive, nor any other element is of equal importance as the staff. By hiring good staff from the beginning, you create the right working environment and work ethic, and the company will attract more good staff and grow in a healthy way.

A perfect example is Huawei. The core values and success of Huawei is totally dependent on the staff they have attracted and retained over the years by providing an above0market average pay structure and stock options for employees. The founder has a very limited number of company shares, and he has built a common interest that has united every member of staff inside Huawei to truly work as a team. The success of Huawei is not to be found primarily in their technology, their values, the founder, the products or anywhere else; it’s their staff and their HR policy that constantly attracts good staff, terminates the contracts of low performers and retains the good ones.

Previously in China companies would discuss their headcount as an indicator of size and success of a company rather than profit. Is this changing to become more about efficiency?

Yes, happily there’s a trend now towards efficiency rather than headcount after all, efficiency and profit are the key to success, not the number of staff you have. When I do recruitment for my own team, I prefer a small team with high efficiency rather than a large team with low performers doing not much all day and influencing the motivation of the good staff.

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