In recent years, Chinese companies have steadily increased their presence across Europe, driven by domestic market saturation, supportive Chinese industrial policies and free-trade agreements, and ongoing tensions with former economic partners. Key industries leading this expansion include electric vehicles and automotive manufacturing, followed by renewable energy and clean tech, particularly solar, wind, and battery production, as well as sectors like electronics, industrial machinery, and consumer retail. There are also emerging partnerships in agriculture and food supply chains.

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While opportunities in Europe are significant, Chinese companies entering regional markets are frustrated at the start by regulatory differences in business setup and hiring practices. Many Chinese business owners and HR professionals are not fully informed about work and residence permits for their teams, payroll localization, and country-specific labor laws. In this guide, we provide an overview of employment specifics for Chinese nationals within the EU and highlight the advantages of expanding your business in the region through an EOR (Employer of Record) model.

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How can Chinese companies legally hire their employees in the European Union?

Chinese citizens cannot work on tourist visas in any European Union (EU) member country and must obtain appropriate residence/work permits. There is no uniform “China visa” – rules of entry with the purpose of employment depend on each country, with the following schemes generally applicable throughout the Union:

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• The EU Blue Card, which is suitable for highly qualified professionals in industries such as IT, engineering, and R&D. To be eligible for it, a Chinese citizen must hold a university degree in the relevant field or provide equivalent professional experience, and receive a salary that meets the minimum threshold, ranging from 1 to 1.6 times the average gross annual salary in the designated EU country. Holders of the EU Blue Card also benefit from faster family reunification and mobility across participating countries, excluding Denmark and Ireland.

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• National Work (Type D) Visas, which are standard work permits suitable for a broader range of roles. To obtain one for a Chinese passport holder, an employer must demonstrate that no suitable EU citizen is available for the position. Moreover, a candidate must hold a degree in the relevant field from one of China’s top 100 recognized universities. Exact application processes and rules vary by member state.

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• Intra-Company Transfer (ICT) Visas, which allow Chinese companies to temporarily send managers or specialists to EU affiliates. To be eligible, a Chinese citizen must provide proof of relevant skills and adhere to the labor law in the destination country for the duration of their stay.

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What do Chinese employers need to know about labor laws, taxes, and the social security system in the EU?

It is crucial to understand that once a Chinese passport holder is legally employed in an EU member state, they are no longer subject to Chinese labor regulations and must instead be enrolled in the tax and social security system of the designated country. The EU provides residents with robust social support, which is built on three pillars: comprehensive healthcare (ranging from annual checkups and minor treatments to medical emergencies, major surgeries, long-term care, and medical support during pregnancy and childbirth), unemployment benefits in various scenarios of job loss, and pensions for retirees. The system is well-established and functions reliably across member states, with contribution rates varying from country to country but typically higher than those in the PRC. Employer and employee tax rates are also higher, meaning a larger portion of payroll goes toward taxes and social security contributions.

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Employment agreements with Chinese team members relocating to Europe must be drafted in the local language and comply with local labor laws regarding the 8-hour workday, overtime pay, notice periods, termination procedures, and similar requirements. Salaries must be paid in local currency, and domestic intra-company rules regarding overtime, annual leave, or other types of PTO do not override the mandatory benefits and paid leave established by EU member states.

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Chinese employers intending to operate in the EU must also be prepared for significantly longer mandatory annual paid leave (commonly 25–30 days, depending on the country, plus additional public holidays), as well as paid sick leave entitlements for their teams. In China, public holidays are concentrated around events such as the Spring Festival and National Day, often resulting in extended “Golden Week” breaks across entire companies. By contrast, in the EU, statutory holidays are largely based on the Christian calendar, with Christmas and Easter among the most widely observed. Employers generally follow official holiday calendars, and employees typically plan individual vacation days well in advance. Time off is usually coordinated across teams to ensure coverage and a balanced distribution of absences.

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What is GDPR, and how does it affect Chinese companies operating within the EU?

GDPR (General Data Protection Regulation) is a legal framework that applies to all companies handling the data of individuals in the EU, regardless of their citizenship. Under GDPR, Chinese nationals hired under employment agreements in one of the EU member states have the same data protection rights as local employees. Chinese employers operating on the territory of the EU must have a clear legal basis to process the personal data of their team members for purposes such as hiring, payroll, benefits, performance management, and termination. Storing, processing, and transferring personal data must align with the GDPR security standards.

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Most importantly, GDPR does not permit transfers of employee data from the EU to China (e.g., to a parent company, headquarters, or HR system) without additional safeguards:

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• Standard Contractual Clauses approved by the European Commission;

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• A transfer impact assessment evaluating Chinese data access laws;

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• Other technical or organizational safeguards (if needed).

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What is an Employer of Record, and how can it simplify the employment of Chinese nationals in the EU?

An Employer of Record, or simply EOR, is an outsourcing company that legally hires and manages employees in a foreign country on behalf of a client business. In this scenario, you, as an employer, do not need to go through the time-consuming and costly process of establishing a legal entity in an EU country. Instead, you sign a contract with an EOR provider that takes on administrative and legal responsibility for your EU-based hires. For a fixed price per employee, you get comprehensive support with payroll, bonuses, taxes, social security contributions, and compliance with the local labor laws. In other words, while your team works for you, your EOR provider ensures that every stage of employment is carried out lawfully, provides consultation on various legal aspects, manages documentation, and ensures a smooth connection between you, your team, and the local authorities.

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Acvian is an EU-based EOR provider with a multilingual team and in-person presence in many popular European destinations. We have current active projects with Chinese nationals working in the European Union through the Employer of Record model.

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This means we understand the country-specific nuances of hiring in the region and are well-equipped to provide your company with informational and practical support at every stage of cooperation: relocation of your Chinese team to Europe via the most suitable visa path, localization of employment contracts, and comprehensive support throughout the entire employment lifecycle. On top of that, we offer reasonable and transparent pricing and true customer care with fast response times. To get started, simply book a meeting with our expert or submit a request form.