Establishing Economic Employer Qualification for Foreign Staff Secondments to China
Establishing economic employer status under Bulletin 19 requires foreign entities to pass operational risk and cost management to local Chinese affiliates.
Foreigner Work Permit
Meaning
Official employment authorization licenses issued by the Ministry of Human Resources and Social Security grant non-Chinese citizens legal permission to perform labor within mainland China. Bureaucratic departments issue a foreigner work permit as a prerequisite for obtaining an employment-based residence permit from immigration authorities. The licensing regime enforces a points-based evaluation system categorizing applicants into tiers based on professional qualifications, salary level, educational background and age.
Unlicensed employment results in administrative detention, financial penalties, visa revocation and deportation for the foreign national along with fines for the hiring entity.
Classification Tier
Regulatory standards divide applicants into distinct talent categories according to qualification thresholds and market demand. Human resource departments applying for a foreigner work permit submit verified educational diplomas, background checks and employment contracts to local talent bureaus. Category A applicants benefit from expedited processing and flexible age restrictions, whereas Category B applicants must meet strict bachelor degree and work experience minimums.
Administrative Approval
Local human resources management centers process documentation through the unified online management system. Approved foreigner work permit notifications allow foreign candidates to apply for Z entry visas at Chinese embassies abroad.
Employment Status
Statutory obligations bind the permit directly to a specific corporate entity and location listed on the license. Transferring a foreigner work permit to a new employer requires formal cancellation of the existing license followed by a new application within thirty days. Working for entities other than the designated sponsoring employer constitutes illegal employment under the Exit and Entry Administration Law.
Employers must report contract terminations to the issuing authority within ten business days to maintain corporate compliance ratings.