Recent Insights

For foreign companies operating in China, social insurance is one of the most important compliance issues to get right. At the national level, foreigners legally employed in China are generally expected to participate in the social insurance system. However, in practice, local implementation varies by city, and some locations have different approaches depending on the employee’s status, work permit, or whether a commercial insurance arrangement is accepted. Because of these

If you are a foreign business owner in China, how you report your own income is more than just an accounting detail. It affects your personal income tax, your company’s tax treatment, and your overall compliance position. A common mistake is assuming that any money paid from your own company to yourself can automatically be treated as wages and salaries. In reality, the correct tax category depends on your role in the business and the nature of the payment. The Basic Rule The

Navigating labor laws can be challenging for companies operating internationally. When comparing China labor law with US labor law, the differences in hiring, exit procedures, and severance pay are significant. These differences affect how employers manage employees and how workers experience job security and benefits. This post explores these contrasts in detail, helping HR professionals, business owners, and employees understand what to expect in each system. Hiring Process

Managing payroll tax in China is a critical compliance task for both local and foreign-invested enterprises, as well as a key concern for employees. Unlike many countries with unified national rules, China’s payroll tax system integrates national legislation, local implementation guidelines, and city-specific contribution standards, making it essential to understand the core components, calculation methods, and compliance requirements to avoid risks.

For foreign-invested enterprises investing or setting up factories in China, statutory holidays are not just about time off—they directly impact production scheduling, logistics and customs clearance, capital flow, labor compliance, and wage costs. The May Day holiday, as a key long break in the first half of the year, sees government departments, banks, ports, and factories all adjusting their service hours. Any oversight could lead to delays, contract breaches, or even

If you are planning to open or run a factory in China, mark 15-23 February 2026 now. During this nine-day window the country virtually stops: ports, customs, banks and most factories operate with skeleton crews or close completely. Below is the short version of what the law requires you to pay, when you must release goods, and how to keep both workers and customers happy. 2026 Spring-Festival Calendar (State-council release) Legal holiday: 15 Feb (Sun) – 23 Feb (Mon) Make-up

An Operator’s Guide for the Work Permit Salary Based on the 2025 Rules and Real-Case Outcomes The Question That Never Dies “Will RMB 8,000 per month be enough for our new legal representative?” Ask ten consultants in China, and you will hear ten different figures. They range from “at least the local minimum wage” to “six times the social-average salary or forget it.” The truth is that both answers are correct. They describe two different gates that a foreigner must pass. Gate

As a foreign company operating in China, understanding the rules around holiday wage payments is essential. Offering clear compensation during holidays not only ensures compliance with local laws but also boosts employee satisfaction. In this blog post, we will break down the critical aspects of holiday wage payments for foreign companies in China, making sure you are well-prepared for this important responsibility. The Importance of Holiday Wage Compliance Following local la