China, the world’s second-largest economy, is a key destination for multinational companies aiming to expand their operations in Asia. With its booming tech sector, well-established infrastructure, and a workforce known for discipline and dedication, China presents a wealth of opportunities. But to thrive in this market, understanding the local work culture is critical.

Whether you’re setting up a local branch, planning to hire remote employees, or engaging a Professional Employer Organization (PEO) or Employer of Record, understanding workplace etiquette and employee expectations in China will determine your success.

Hierarchical Structure and Respect for Authority

In China, businesses often follow a strict hierarchical structure. Employees are expected to show deference to senior managers and decision-makers. Authority is not only respected but often unquestioned in many professional settings.

For foreign employers, this means communication should be routed through appropriate channels, and senior managers are expected to lead by example. When using a Professional Employer Organization or Employer of Record, they can guide you through appropriate onboarding practices to ensure cultural alignment from day one.

The Importance of Guanxi (Relationships)

Guanxi, or personal relationships, plays a significant role in the Chinese workplace. Trust is built through strong relationships rather than just contracts or transactions. This affects both internal operations and external partnerships.

If you’re looking to hire remote employees or local staff, investing time in relationship-building will improve communication and collaboration. Partnering with an Employer of Record in China can also help bridge cultural gaps, as they have established local networks and understand the nuances of guanxi.

Face (Mianzi): Reputation Matters

“Saving face” or maintaining dignity is a key concept in Chinese culture. Employees and business partners alike avoid public confrontation or criticism, as it could cause embarrassment and damage reputation.

As a foreign employer, offering constructive feedback in private and showing appreciation publicly is more effective. A skilled PEO or Employer of Record provider will help ensure that your leadership and HR approach respects these cultural sensitivities.

Work Ethic and Overtime Culture

Chinese employees are often hardworking and committed. The “996” schedule (working 9 a.m. to 9 p.m., six days a week) became infamous in tech and startup circles, although recent pushback is prompting many companies to adopt healthier work-life balances.

However, expectations around long hours and dedication remain. To build a sustainable work environment, companies should clarify working hours and boundaries. This is especially important when offering global roles or seeking to hire remote employees based in China. Ensuring transparency through locally compliant contracts—prepared by your Employer of Record or PEO—can avoid misunderstandings later.

Language and Communication

Mandarin is the primary business language in China, and while many younger professionals speak English, not everyone does. Communication styles also lean toward indirectness and diplomacy. Clear, respectful language is key.

When using a local Professional Employer Organization, they can help mediate communication gaps and even assist in providing bilingual contracts, training, and documentation.

Holidays and Leave Expectations

China observes several national holidays, the most important being Chinese New Year and Golden Week. Employees also value time off during these periods to spend with their families.

Understanding the Chinese holiday calendar is crucial when setting expectations for work and deliverables. Payroll outsourcing providers or your Employer of Record partner will ensure all leave policies comply with local labor laws and cultural expectations.

Legal Compliance and Payroll Expectations

China’s labor laws are complex and ever-evolving. Employers must contribute to social insurance, housing funds, and adhere to probation, severance, and termination regulations. Mistakes in payroll or compliance can result in heavy penalties.

That’s why many foreign companies rely on payroll outsourcing, international payroll services, or an Employer of Record in China. These partners handle everything from employee registration to monthly tax filing, ensuring that your company meets all local obligations.

Hiring Practices and Candidate Expectations

In China, job candidates often prioritize job stability, brand reputation, and opportunities for growth. It’s common for professionals to ask detailed questions about the company, team structure, and long-term plans.

When working with a Professional Employer Organization, they often have local recruiters who understand how to present your company in a way that resonates with Chinese talent. This is particularly useful when trying to hire remote employees or tech professionals who may receive multiple offers.

Training and Development

Chinese employees place high value on continuous learning and development. Offering upskilling opportunities, certifications, and clear growth paths enhances employee engagement and retention.

An experienced Employer of Record or PEO can help you integrate learning and development into the employee lifecycle—ensuring your team feels invested in and motivated.

Performance Reviews and Feedback

Formal performance reviews are gaining popularity in China, but informal feedback is still expected to be respectful and encouraging. Avoid direct or public criticism, and instead focus on strengths while gently addressing areas for improvement.

Many global employment solutions partners include performance management support as part of their services. Whether you are on-site or managing remotely, they ensure your feedback methods are appropriate and effective.

Final Thoughts

China’s unique work culture requires foreign employers to approach recruitment and management with cultural intelligence and legal awareness. From navigating social etiquette to ensuring full compliance with tax and labor laws, expanding into China isn’t just about hiring—it’s about adapting to a new way of working.

Working with an Employer of Record or Professional Employer Organization is the safest, fastest way to enter the Chinese market while ensuring your employees are managed compliantly and respectfully. These partners offer comprehensive international payroll services, payroll outsourcing, and onboarding solutions so you can build your workforce with confidence.

Whether you’re seeking to hire remote employees in China or establish a presence on the ground, leveraging global employment solutions like those offered by Team APAC can set you up for long-term success.

Want to hire in China without setting up a local entity? Team APAC’s Employer of Record and PEO services can help you get started fast, compliantly, and efficiently. Reach out today to learn more.