Chapter 4.6: Employing Staff in China

Li Yong, Deputy Secretary General, China Association of International Trade

Overview

Since the economic reform and opening up, China's vast market potential and fast-growing economy have attracted the attention of foreign businesses. Having a presence in China is key to tapping into market opportunities. Foreign entry into the market takes a number of different forms such as representative offices, equity joint ventures, contractual joint ventures and wholly foreign-owned enterprises . Whatever the form of entry a business takes to establish its presence in China, employment of local staff is an unavoidable issue. However, not every kind of foreign establishment can legally employ Chinese staff on its own.