Work Permits and Mobility in China

How work permits in China are structured

Work permits in China are required for almost every foreign national who takes up employment on the mainland, whether hired locally or seconded from abroad. The system has two layers. First, the employer obtains a Foreigner's Work Permit through the foreign experts administration of the local science and technology authorities. Second, the employee obtains the matching immigration status: a Z visa to enter for work, followed by a work-type residence permit issued by the local exit-entry administration under the Exit and Entry Administration Law.

Since 2017, applicants have been classified into three tiers. Category A covers high-end talent: people meeting recognised talent programme criteria, holders of significant awards, or applicants scoring at least 85 points. Category B covers professional talent, generally graduates with relevant work experience who meet the points threshold or specified conditions. Category C covers other workers, such as temporary, seasonal or service roles, and is subject to quotas and tighter scrutiny. The tier affects documentation, processing and the ease of renewal.

The points system weighs salary, work experience, education, Chinese-language ability and other factors such as age and the employer's location in a priority region. Official guidance from Shanghai, for example, explains that salary, experience and education can each contribute up to 20 points, with additional points for language and other qualifications. Salary must be supported by a commitment form signed by both parties, and later renewals require tax records showing that the declared salary was actually paid.

Supporting documents typically include degree certificates, which for overseas degrees must be authenticated, reference letters from former employers confirming roles and dates, a criminal record certificate from the country of nationality or residence, a health declaration or medical check, and the labour contract or secondment letter. Requirements for legalisation have eased for countries party to the Hague Apostille Convention, which took effect for China in November 2023, but local practice still varies.

Application process step by step

The process for a new hire from overseas usually follows a predictable path. Timelines depend on the city, the tier and the quality of the documents, and employers should allow for document gathering abroad, which is often the longest stage.

Candidates already in China on another status, such as a graduate of a Chinese university or a spouse visa holder, may in some cases change status without leaving, depending on local rules. Transfers between employers require the new employer to apply for a new permit and the old permit to be cancelled. Renewals should begin well before expiry because a lapse can make subsequent work unlawful.

Representative offices of foreign enterprises can sponsor foreign chief representatives and representatives, who are registered with the market regulation authority and also need work authorisation. Local staff of representative offices are generally engaged through licensed foreign enterprise service agencies.

Business travel, visa-free entry and the K visa

Not every visit needs a work permit. Attending meetings, negotiating contracts, visiting suppliers and attending trade fairs are generally business activities that may be undertaken on an M (business) visa or under visa-free arrangements. The line is crossed when the visitor performs productive work for a Chinese entity or receives local pay. Installation, repair, training and project work can be work even if short, and the rules distinguish short-term work from business visits, so employers should assess assignments rather than rely on the visitor's title.

Visa-free entry has expanded significantly. China's unilateral visa-exemption policy covers nationals of more than 40 countries, including France, Germany, Italy, the Netherlands and Spain, and the government announced in November 2025 that it would extend these arrangements to 31 December 2026. The 240-hour visa-free transit policy allows nationals of 55 countries to transit through designated ports to a third country, and the number of eligible ports was raised to 65 in November 2025, including several in Guangdong and the Hong Kong-Zhuhai-Macao Bridge.

A new K visa for young foreign science and technology talent took effect on 1 October 2025, under an amendment to the Regulations on the Administration of the Entry and Exit of Foreigners. It is designed to make it easier for young STEM graduates and professionals to come to China for education, research, exchange and entrepreneurship activities. Employers should not assume it removes the need for work permits in China where a person takes up a standard employment relationship; the interaction between the two should be confirmed case by case.

Compliance risks for work permits in China

The Exit and Entry Administration Law treats work without a valid work permit and work-type residence permit, work outside the scope of the permit and the employment of foreign students beyond permitted part-time arrangements as illegal employment. Penalties for the foreign national include fines and, in serious cases, detention and deportation. Employers that hire illegally face fines calculated per person, up to a statutory cap, and confiscation of illegal gains.

Several common situations create risk. An employee whose permit is issued for one entity may start working for an affiliate. A secondee's role may expand into a different city without updating the permit. A permit may lapse during a renewal delay. A foreign intern may be paid like an employee. Each can amount to working outside the scope of the authorisation.

Changes in the employment relationship must be reported. When a foreign employee leaves, the employer should cancel the work permit and notify the authorities, and the employee's residence permit may need to be cancelled or converted. Failure to do so can affect the employer's credit record with the authorities and complicate future applications.

A worked example shows how quickly issues compound. A European engineer is sponsored by a Shenzhen subsidiary, then asked to spend most of the year supporting a sister company's plant in Suzhou while remaining on the Shenzhen payroll. The work permit names the Shenzhen employer and place of work, the residence registration remains in Shenzhen, and social insurance continues there. In substance, the engineer is working for a different entity in a different city. Regularising the position, whether through a new permit, a formal secondment arrangement recognised locally or a change of employer, is far easier before an inspection or dispute than after one.

Employers should also be aware that the authorities increasingly cross-check data. Declared salaries are compared with individual income tax filings, and residence registrations are linked to accommodation records. Inconsistencies are more visible than they once were, especially at renewal.

Employment status, contracts and social insurance

Holding valid work permits in China has consequences beyond immigration. The Supreme People's Court's Interpretation (II) on labour disputes, effective from 1 September 2025, provides that a foreign national may be recognised as having a labour relationship with a Chinese employer where the person holds permanent residence, or holds a work permit and resides lawfully in China, or has otherwise completed the required formalities. Without these, the foreign national may struggle to claim the protections of Chinese labour law, and the employer may find its contractual protections weaker than expected.

Foreign employees lawfully employed in China must generally participate in social insurance, subject to bilateral agreements with countries such as Germany, South Korea, Japan and Switzerland. See our social insurance, benefits and pensions page for details.

Tax follows residence and source. Foreign individuals who reside in China for 183 days or more in a tax year are generally tax resident for that year, with relief for worldwide income available under the six-year rule in certain cases. Our individual income tax and executive incentives page discusses mobile employees and equity income.

Contract design matters too. A foreign employee may hold a local labour contract, remain on a home-country contract under a secondment, or have a split arrangement. Each model has different implications for work permit documentation, social insurance, termination rights and permanent establishment risk for the foreign employer. Our employment contracts and policies page covers the local contract.

Greater Bay Area, Hong Kong and outbound mobility

Shenzhen sits at the centre of the Greater Bay Area, where talent moves frequently between Hong Kong, Macao and the mainland. Residents of Hong Kong, Macao and Taiwan have not needed employment permits to work on the mainland since 2018, and they participate in social insurance on the same basis as mainland employees. This makes cross-border staffing between Hong Kong and Shenzhen considerably simpler than for foreign nationals.

The Greater Bay Area also offers a preferential individual income tax policy: eligible overseas high-end and shortage talent working in the nine mainland cities can receive a subsidy for the portion of individual income tax above the equivalent of a 15 per cent burden, under a policy currently extended to the end of 2027. Hainan Free Trade Port has a comparable 15 per cent cap for qualifying talent. See our Greater Bay Area guide.

Mobility also runs outward. Chinese companies expanding abroad send managers and engineers to Southeast Asia, the Middle East, Europe and Latin America, where they meet local work permit systems, quotas and labour market tests. Hong Kong's talent admission schemes, Singapore's points-based Employment Pass framework and EU national permit systems each have their own timelines and salary thresholds. Outbound assignments should be planned with the same rigour as inbound ones. See our Southeast Asia market entry page.

Families, dependants and long-term status

Assignments succeed or fail on family arrangements as often as on paperwork. Spouses and minor children of work permit holders can usually obtain dependent visas and residence permits linked to the principal's status, but they are not authorised to work by virtue of that status. A spouse who wishes to work needs a separate work permit sponsored by their own employer. Schooling, healthcare and housing should be addressed early, as international school places in cities such as Shenzhen and Shanghai can be limited.

Residence permits for work are typically issued for the duration of the employment, subject to maximum periods, and some cities offer longer validity for Category A talent or for employees with a good compliance history. For long-serving senior staff, high-level talent and significant investors, permanent residence is an option, although criteria remain demanding and processing can be slow. Permanent residence removes the need for a work permit and simplifies job changes.

Dependants who stay in China after the principal's employment ends, or children who reach adulthood, need to change status in time. These transitions are easy to overlook in a busy mobility programme.

Common mistakes

• Starting work on a business visa or visa-free entry while the work permit is pending.
• Declaring a salary for points purposes that does not match payroll and tax filings.
• Allowing a permit holder to work for an affiliate or in another city without updating authorisation.
• Missing the 30-day residence permit deadline after entry on a Z visa.
• Failing to cancel permits when foreign employees leave, which can affect the employer's record.

Planning work permits in China for mobility programmes

Groups with a regular flow of assignees benefit from a structured approach to work permits in China rather than case-by-case handling. A practical checklist:

1. Map the mobile population: long-term assignees, local hires, rotators, commuters from Hong Kong and frequent business travellers.
2. Pre-assess candidates against tier and points criteria before an offer is made, especially for older or less senior candidates.
3. Build a document library and start authentication early, since overseas steps cause most delays.
4. Align the work permit employer, the labour contract, payroll and the place of work.
5. Diarise renewals at least two to three months before expiry, and track dependants' status.
6. Coordinate social insurance, tax and immigration data so that declared salaries and filings are consistent.
7. Prepare exit steps: cancellation of permits, final tax filings and social insurance account decisions.

Restructurings and acquisitions raise particular issues. Where foreign employees transfer between entities, new permits are usually required. In acquisitions, buyers should check that foreign staff hold permits for the correct employer and role. Our employment investigations and due diligence page covers labour diligence.

How TRW & Co helps with work permits in China

We help multinational and Chinese groups plan and manage cross-border mobility. We design assignment structures that align immigration, employment contracts, social insurance and tax across China, Hong Kong and other jurisdictions, review business traveller programmes, and coordinate outbound postings for Chinese companies abroad. We also advise on the mobility aspects of restructurings and acquisitions. As a foreign law firm representative office, we do not file applications with PRC authorities or issue PRC legal opinions; where PRC legal advice or filings are required, we work with licensed PRC law firms and qualified immigration service providers and coordinate the overall approach. Contact us to discuss your needs.