Expanding your business into China opens the door to one of the world’s most dynamic and opportunity-rich markets. However, hiring and building a team in this vast and complex environment demands a deep understanding of local customs, laws and regional nuances.
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.
