Is there a quota for hiring expats in China?

Officially, there is no regulation explicitly placing quotas on the number of expats a company can hire. However, in China, local government agencies – often the municipal Human Resources and Social Security Bureau – have the authority to decide on applications for hiring foreign employees. In practice, these agencies have a habit of refusing applications for foreign employees over a certain limit. These guidelines are not published or explicitly revealed through any channels, but based on the experience of Dezan Shira & Associates, when assessing whether it is necessary for a company to hire foreigners, and if so, how many, the government considers things like the applicant’s business scope and size, registered capital, and internal structure, as well as the specific position in question. For example, a company with little registered capital wanting to hire a large number of foreigners is very likely to see its application refused. 

Companies may directly enquire with the relevant authorities, providing details such as their registered capital and target industry, to get an understanding of how many foreigners they will likely be allowed to hire, or contract the services of a tax/law consultancy such as Dezan Shira & Associates.