As the world’s largest manufacturing hub and a key player in global trade, China remains central to supply chain operations for companies across industries. From sourcing and procurement to logistics and inventory control, hiring a local supply chain manager in China can dramatically improve efficiency, cost control, and supplier relationships.

But if your company doesn’t have a legal entity in China, how can you compliantly hire a supply chain manager? What legal and operational factors do you need to consider? In this article, we’ll explore everything global employers need to know—from regulatory frameworks to employment options like Employer of Record (EOR) services—to hire top supply chain talent in China.

Why Hire Supply Chain Managers in China?

China is home to some of the world’s most robust manufacturing ecosystems, advanced logistics infrastructure, and competitive supplier networks. Hiring a local supply chain manager gives you:

Language and Cultural Fluency

A Chinese-speaking manager understands local business customs, negotiation styles, and supplier dynamics—crucial for managing vendors and logistics partners effectively.

On-the-Ground Oversight

With proximity to factories, warehouses, and shipping ports, a China-based manager can perform supplier audits, resolve issues quickly, and optimize delivery timelines.

Local Compliance and Cost Management

An experienced professional can help navigate China’s customs, tax, and regulatory requirements—while identifying cost-saving opportunities across sourcing and logistics.

Business Continuity

In times of supply chain disruptions (like COVID-19 or geopolitical tensions), having a local manager ensures smoother communication and faster decision-making.

Challenges of Hiring in China Without a Local Entity

Foreign companies cannot legally hire employees in China without a registered business entity (e.g., a Wholly Foreign-Owned Enterprise, or WFOE). Hiring an employee directly from abroad may lead to:

• Employment law violations and regulatory fines
  
• Inability to process payroll taxes or social contributions
  
• Risk of misclassifying employees as contractors
  
• Lack of legal protection for both employer and employee
  

Fortunately, there’s a compliant and efficient solution: hiring through an Employer of Record (EOR).

What Is an Employer of Record (EOR)?

An Employer of Record is a third-party service provider that legally employs a worker on your behalf in a foreign country. The EOR becomes the legal employer—handling compliance, payroll, taxes, and HR—while you manage the employee’s daily tasks.

By partnering with a China-based EOR, you can legally hire supply chain professionals in the country without opening a local entity.

How an EOR Helps You Hire Supply Chain Managers in China

Here’s what an EOR in China typically manages for you:

1. Employment Contracts

The EOR drafts contracts that comply with China’s Labor Law, covering probation periods, benefits, working hours, termination conditions, and more.

2. Payroll & Taxes

China has a complex payroll system involving individual income tax, social insurance (pension, medical, unemployment), and housing fund contributions. Your EOR handles all calculations, withholdings, and filings.

3. Social Benefits Enrollment

Supply chain managers must be enrolled in China’s mandatory social security system. Your EOR ensures proper registration and ongoing contributions.

4. Leave and Holidays

EORs manage employee entitlements such as annual leave (5–15 days depending on seniority), sick leave, national holidays, and maternity/paternity leave.

5. Termination and Severance

Chinese labor law has strict rules on termination and severance payments. EORs handle offboarding in full compliance with local regulations.

What to Look for in a Supply Chain Manager in China

To hire effectively, look for professionals with:

• Strong supplier network across regions like Guangdong, Jiangsu, and Zhejiang
  
• Experience in sourcing, procurement, logistics, and ERP tools (e.g., SAP, Oracle, NetSuite)
  
• Fluency in Mandarin and English for seamless coordination
  
• Knowledge of Incoterms, international shipping, and customs compliance
  
• Ability to manage vendor audits, quality control, and cross-border trade
  

Bonus points for experience with green supply chain practices or digital transformation in logistics.

Contractor vs EOR in China: Why Misclassification is Risky

Some employers consider hiring supply chain managers as independent contractors. But in China, this poses serious legal and financial risks:

• If the relationship is effectively full-time and employer-controlled, the worker may be reclassified as an employee
  
• Misclassification can result in back pay for benefits, unpaid taxes, fines, and legal disputes
  
• Contractors do not receive social insurance or protection under China’s Labor Law
  

Hiring via a compliant EOR company helps you avoid these pitfalls and ensures a professional employment experience for your staff.

EOR vs PEO in China

For most foreign employers without a Chinese entity, an EOR is the fastest and most compliant option.

Cost Considerations

In China, hiring costs include:

• Gross salary (varies by region and seniority)
  
• Employer social contributions (approx. 35–45% of gross salary)
  
• Annual bonus (13th-month pay is common)
  
• EOR service fees (typically charged monthly per employee)
  

Despite these costs, hiring locally often results in better supply chain performance and cost savings over time.

How Team Apac Can Help

Team Apac specializes in Employer of Record (EOR) services across Asia-Pacific, including mainland China. We enable global companies to:

• Hire supply chain managers in China quickly and compliantly
  
• Manage local payroll, taxes, and benefits with accuracy
  
• Stay updated on labor laws and employment trends
  
• Provide a professional HR experience to your new hires
  
• Scale your China team without the burden of entity setup
  

Whether you’re managing product sourcing, manufacturing, or logistics operations in China, Team Apac ensures a seamless remote hiring process—so you can focus on growth.

Final Thoughts

China remains a vital hub in the global supply chain. By hiring a local supply chain manager, you gain market insights, cost advantages, and operational efficiency.

And with the help of a trusted Employer of Record, you can hire top talent in China without opening a local entity, violating labor laws, or facing compliance challenges.

Partner with Team Apac to confidently expand your supply chain team in China and take your global operations to the next level.