How to plan local and foreign hires in China: work permits and role assessment

Start with role delivery, then assess the candidate and permit

If a company begins by asking whether to hire a local or foreign employee, it can easily use nationality as a proxy for ability, cost or management approach. First define what the role must deliver, then check whether the candidate can deliver it through verifiable experience. Next assess whether work permits, visas, stay or residence documents, payroll tax and social insurance and housing-fund arrangements can be implemented at the real work location. China's Employment Promotion Law requires employers to provide equal employment opportunities and fair employment conditions and prohibits employment discrimination. Employment Promotion Law of the PRC

Foreign employees are not fixed strategy roles, and local employees are not fixed execution roles. A role that needs Chinese regulatory-material reading may suit a foreign candidate with relevant experience; a role that needs cross-border customer communication may suit a Chinese candidate with experience in that market. Delivery, evidence, work location, management conditions and permit feasibility should decide the issue, not a passport.

This article applies to businesses preparing to hire, change roles or arrange short-term work in mainland China. It focuses on mainland-China rules for labour, wages, tax, social insurance, housing fund, personal information and foreign work permits. It does not replace individual labour, immigration, tax or tax-treaty advice.

1. Role evidence card: write the job as verifiable facts

Before recruiting, make a role evidence card. Leave nationality blank for the time being and record the following seven sets of facts. Each needs evidence and an alternative action if it is not met, rather than adjectives alone.

1. Delivery outcome. State the documents, customer handovers, product releases, training or sales actions required in the first 30, 60 and 90 days and name the reviewer. Turn international perspective or familiarity with China into observable outputs, such as a client explanation in a specified language or an approved technical-training pack.
2. Customers, market and language. Identify the real service users, languages, time zones, travel locations and communication channels. Language is a role condition only when delivery requires it. If only one document needs translation, native language, nationality or appearance should not become a screening threshold.
3. Evidence of skills. Record portfolios, project reviews, professional qualifications, verifiable work samples and structured-interview scores. For work requiring industry admission or prior approval, list the regulator's requirements before deciding whether to recruit. Do not substitute labels such as foreign expert or local person for qualification checks.
4. Compliance and data touchpoints. Map the customer data, passports, health information, pay information, source code and overseas systems that the candidate will access. At recruitment, collect only information needed for recruitment, onboarding and legal obligations, state its purpose, retention period, access holders and any overseas provision. The Personal Information Protection Law requires a definite purpose, direct relevance and minimum scope. Overseas provision may also require notice, separate consent and an impact assessment under the applicable conditions. Personal Information Protection Law of the PRC
5. Work location and management conditions. Record the city where labour is actually provided, remote-work status, contracting entity, payroll payer, leave approver and owner of work results. A foreign candidate's real work location can affect the permit authority, social insurance, housing fund and tax analysis. A registered address or head-office location cannot replace it.
6. Start-date dependencies. List document translation, visa, work permit, residence, equipment, customer-confidentiality approval and training separately, with an evidence status for each. Selecting the candidate does not mean they can begin immediately.
7. Redesign if it fails. Decide in advance whether the work can be split into local document coordination, remote product design, short-term training or local-partner support. If the candidate is capable but the permit cannot be issued on schedule, change the delivery and timetable first rather than shifting compliance risk to the employee.

The role evidence card should give only three conclusions: suitable for the current role; reassess after adjusting the role; or do not hire yet because evidence or permission is insufficient. It converts broad judgments such as cultural fit back into explainable work requirements and applies the same scoring standard to local and foreign candidates.

2. Common rules for local and foreign hires, and the real points of divergence

Recruitment and employment contracts have common minimum requirements. Job advertisements, screening questions and background checks should relate to actual role requirements. Do not ask for nationality, marriage, family or document information unrelated to the job. A written employment contract should be made when an employment relationship is established in China. If it is not made at the time work begins, the law requires it within one month from the start date. Labour Contract Law of the PRC Wages, working time, rest, leave and labour protection cannot be arbitrarily rewritten just because a role is described as foreign. Check rules at the real work location, beginning with the national framework in the Labour Law of the PRC.

Wages and IIT use a common payroll chain, but individual tax status differs. Both groups should have a clear contractual wage, pay date, payslip, lawful deductions and employer-funded items. The Individual Income Tax Law treats an individual domiciled in China, or without domicile but cumulatively resident in China for 183 days in a tax year, as a resident individual. Non-resident employment income is calculated monthly or by payment, so nationality or visa cannot decide the result. Individual Income Tax Law of the PRC For employees without domicile, also check Chinese and overseas employers and payments, China workdays, tax treaties, 90- and 183-day variables, the six-year rule and the effect of a single departure exceeding 30 days. Residence-time determination notice Policy for non-residents and residents without domicile Implementing Regulations

Do not describe social insurance as a universal foreign-employee exemption. The Social Insurance Law requires the employer to register employees for social insurance within 30 days from employment, pay contributions in full and on time, withhold the employee portion and provide details. Social Insurance Law of the PRC For foreigners employed in China, the usual current framework is participation in pension, medical, work-injury, unemployment and maternity insurance, with employer and individual contributions as required. A bilateral or multilateral social-security agreement is treated under that agreement. Interim Measures MOHRSS policy portal Ask whether the nationality is covered by an effective agreement, which insurance type is exempt, for how long, and whether the required participation certificate exists. Without it, do not enter zero social insurance in the budget.

Separate the national housing-fund framework from city practice. The Housing Provident Fund Management Regulations include foreign-invested enterprises among relevant employers and require contribution registration after hiring. Whether foreign individuals are covered in a particular city, and how account and withdrawal documents work, still needs confirmation with the housing-fund centre at the actual work location. Do not copy the social-insurance conclusion to the housing fund or use a local employee's city parameters for a foreign employee. Start with the Housing Provident Fund Management Regulations and obtain the current written local position.

3. Work-permit gates: normal long-term and short-term routes differ

First correct a common misconception: do not call the former Alien Employment Permit the process for a new hire. Official rules combined the former foreign-entry employment permit and foreign-expert work permit into the Foreigner's Work Permit for China. Current materials, systems and local responsibilities must still follow the latest guide at the work location. Notice on full implementation of the Foreigner's Work Permit system This article does not use obsolete document names or treat any A, B or C label or exemption as automatic.

China's Exit and Entry Administration Law states that a foreigner working in China must obtain a work permit and work-type residence document as required. Exit and Entry Administration Law Regulations on Entry and Exit of Foreigners The MOFCOM open-data page says that the Guide to Working and Living in China as a Foreign Business Person (2026 edition) was last updated on 8 June 2026. This article uses that 2026 edition, rather than the 2025 edition, as the primary reference for foreign-worker routes. 2026 guide data page 2026 guide publication page

Gate one: work normally planned for more than 90 days. The employer first applies to the competent authority for a work permit based on the role, candidate and work location, obtaining the current permit notice or relevant materials. The candidate then applies for a Z visa or another approved route as required. After entry, local requirements may include a Foreigner's Work Permit and a work-type residence document from the public-security exit and entry authority. Beijing's 2026 guide treats work in China for more than 90 days as one application category and covers in-country applications and changes of employer, but it is only a Beijing example. Shanghai, Shenzhen and other cities require a fresh check of their local portals. Beijing guide for more than 90 days

Gate two: short-term work of no more than 90 days. The 2026 MOFCOM guide distinguishes short-term work further. Where work does not exceed 30 days, it may be done for the period stated on the work permit and within the stay period on the Z visa. For short-term work exceeding 30 days, the worker works for the permit period and uses the permit, Z visa and other materials to obtain a work-type residence document with a 90-day stay period. Short-term does not always mean a residence permit, nor does it always mean no residence document. For work over 30 and up to 90 days, current local guidance controls the materials and boundary dates. 2026 guide publication page Beijing guide for 90 days or less

Gate three: the nature of the activity. Business negotiations, meetings, visits or market research are not the same facts as continuously providing labour in China for an employer. Visa-free entry, transit visa exemption or a business visit also does not automatically authorise actual work. The 2026 guide notes that work activity requiring prior approval still needs the required visa, and the Exit and Entry Administration Law prohibits activities inconsistent with the visa type. If a candidate will provide on-site training, technical implementation, filming, engineering direction or a customer project, give the activity description, workdays and deliverables to a local immigration or work-permit professional for review.

Gate four: validity and changes. Put the work permit, passport, role, employer and work location on an expiry-date list. The 2026 guide says the employer applies to extend the work permit 30 days before expiry, and applies to change personal information, role and other changes within 10 working days. Local systems and documents may differ. Do not wait until the person has started or a document has expired.

4. Cost-delivery comparison matrix: turn the choice into a decision with stopping points

The role evidence card answers what must be delivered and the permit gates answer whether the person can lawfully begin as planned. A cost-delivery matrix then answers which option is more reliable. It records cash cost, time dependencies and the cost of failure together; quotations still require separate confirmation.

For each candidate or role option, complete five columns.

• Fixed employer cash. Contract salary, employer social insurance, possible housing-fund contributions, commercial insurance, equipment, training and necessary translation or travel. Do not treat a foreign employee's treaty exemption as a confirmed saving in advance.
• One-off and continuing administration. Permit materials, translation, notarisation or certification needs, visa and residence linkage, renewal reminders, change management, payroll-tax and social-insurance services. Costs can be quoted only after the work location and provider scope are confirmed.
• Delivery dependencies. Earliest possible start date, customer milestones requiring presence, language or time-zone coverage, supervisor availability, backup people and the work that can be delivered remotely.
• Compliance uncertainty. Mark green, yellow or red. Green means the relevant counter has confirmed the material and route. Yellow means missing material, local interpretation or professional review is needed. Red means the role activity does not fit the permit route, or candidate materials cannot evidence a key condition.
• Failure action. Every cell needs an action: retain the candidate but redesign the role, use the local team for preliminary delivery, delay employment, split it into an approved short-term task, or stop the option.

A simple 0-to-2 record can score delivery evidence, availability, management conditions, permit feasibility and total-cost transparency. A red permit item cannot be offset by high scores elsewhere. Any yellow wage, social-insurance, tax or data-compliance item needs an owner and a readback date. The scores compare options for the same role; they do not assign people an ability grade.

If a foreign candidate has stronger market or technical evidence but permit timing cannot cover the project start, redesign the role first. A local employee can deliver the China-based work that must happen immediately, while the foreign candidate takes modules that can start only after the permit clears. If the role no longer requires actual work in China, reassess remote services and the contractual relationship, while still reviewing tax, data and customer confidentiality.

5. Three transparent fictional scenarios: apply the rules to a real schedule

The following are fictional teaching examples. They do not represent approval, registration, recruitment or delivery results, and they are not client cases.

Scenario one: customer-material coordination in Shanghai. A company needs to turn Chinese regulatory materials into bilingual client packs and confirm fields with the Shanghai team every day. Candidate A, a Chinese local employee, has three years of financial-document proofreading and project-management evidence. Candidate B, a foreign employee lawfully resident in Shanghai, can show equivalent Chinese work samples. Both return to the same role card: delivery samples, confidentiality training, Chinese-checking ability, start date and pay budget. If B's work permit or work-type residence status is not confirmed, the company can delay actual work or redesign the role as remote document review that does not provide labour in China. It must not allow B to provide continuing work first on a business-visitor status. A Shanghai work-permit and labour professional should review the case.

Scenario two: software-customer enablement in Shenzhen. The role needs English demonstrations for Southeast Asian customers and must turn feedback into Chinese product requirements. Candidate A, a Chinese employee, has evidence of overseas customer enablement and Chinese product documentation. Candidate B comes from the target market, can evidence local customer-operations experience and has Mandarin communication samples. The company should not automatically assign B market strategy because of nationality, or restrict A to execution because A is local. A two-person or phased arrangement can let A complete product and compliance groundwork first, with B delivering China-based customer training only once permit feasibility is green. If the permit cannot clear by the milestone, A performs on-site delivery and B provides only reviewed overseas input. Before transferring customer data across borders, assess necessity, recipient and safeguards under the Personal Information Protection Law.

Scenario three: 45 days of technical training for a Beijing equipment supplier. Foreign engineer C has training portfolios and customer-acceptance records for the target equipment; the role needs 45 days of on-site training in Beijing. Chinese candidate D has local delivery experience with the same equipment but cannot cover the customer-required language and model. The company cannot put 45 days of on-site work into an ordinary business visit, and C's strong skill evidence does not remove the short-term permit requirement. Check activity nature, permit, Z visa and stay or residence linkage first under the Beijing 2026 portal for work of 90 days or less and the 2026 MOFCOM guide. If materials or required industry qualifications cannot be confirmed, delay C's start, have D complete safety briefings and preparation, or rewrite C's task as an approved short-term module. Give wage payment, China and overseas payment, and tax-treaty facts separately to a tax professional under the Individual Income Tax Law, Implementing Regulations, residence-time notice and non-resident policy notice.

All three scenarios make the same point: redesigning the role, delaying the start or seeking professional review are available choices. Capability needs role evidence, and permit evidence cannot be replaced by a candidate's urgency to begin.

6. Closed-loop checklist before and after an offer

Before making an offer, retain the role evidence card, candidate scoring, real job information, necessary information notice and basis for any background check. For foreign candidates, additionally retain passport validity, current visa or residence status, work-permit status, actual work city, proposed contracting entity, payment chain and expected activity dates. Do not copy an entire passport, family information or health information unrelated to the role into folders visible to all interviewers.

At contract and onboarding, confirm the written employment contract, role, work location, pay, working time, confidentiality and data-access scope. Put local employees through payroll and social-insurance and housing-fund processes. For foreign employees, release each legal requirement for work permit and residence, entry and exit regulations and the current work-permit system, then check visa, stay or residence, social insurance and tax. Social-insurance registration, housing-fund registration and wage payment are separate processes; obtain receipts from the relevant official or handling systems.

In the first month, review at least five matters.

1. Whether the actual employment facts match the contract and role card, including any unapproved on-site work or expanded duties.
2. Whether payslips, bank payments, IIT withholding and employer and employee social-insurance and housing-fund portions reconcile. If resident/non-resident status, China or overseas payment or treaty treatment is uncertain, stop applying a template automatically and refer it to a tax professional.
3. Whether the foreign employee's passport, work permit, visa and residence dates are in the renewal and change calendar. Stop at the gate before a role, employer or location changes; do not register after the fact.
4. Whether candidate materials are accessed only by people with a necessary permission. If a CV, pay or customer data must be sent to overseas headquarters, check cross-border conditions and record requirements under the Personal Information Protection Law.
5. Whether actual delivery still matches the role evidence card. If the role has been forced to take on duties that were not written, reassess the role, pay, permit and data permissions rather than making a temporary arrangement permanent.

7. MANPRPOWER LIMITED's service boundary and the next step

If the business is still establishing an entity and organising its work cities and initial role materials, see the China company registration guide. MANPRPOWER LIMITED's boundary on this topic is China company-registration coordination, document preparation and support from qualified partner organisations. It can help organise entity materials, real work locations, role evidence cards, candidate items to be checked and questions for professional advisers so the business can communicate with the relevant organisations.

This does not replace an authority's approval of work permits, visas, residence, social insurance or tax matters, or case-specific judgment by lawyers, labour and HR providers, immigration or tax professionals. It does not promise company registration, permits, recruitment, start dates or employment results. Take one next step: complete an evidence card for each role, then give the permit gates and cost-delivery matrix to the owner at the real work location for review. Decisions to hire, redesign the role, delay or seek professional review will then have evidence and an owner and can be recalculated when rules or candidate materials change.