China remains one of the most strategically important markets for global expansion, offering unmatched access to manufacturing ecosystems, technical talent, and large consumer bases. However, outsourcing manpower in China is not a straightforward cost-saving exercise. The country’s complex labor laws, region-specific payroll rules, and strict employment compliance requirements make hiring far more nuanced than in many other markets.

In 2026, global companies are rethinking traditional outsourcing China models and increasingly shifting toward compliance-first approaches such as Employer of Record (EOR) services in China. This guide breaks down how manpower outsourcing works in China, the risks involved, the top vendors to consider, and why EOR-based hiring has become the safer alternative for long-term growth.

What Is Manpower Outsourcing in China?

Manpower outsourcing in China typically involves engaging a third-party company to recruit, employ, and manage workers on behalf of a foreign or domestic business. While the concept sounds similar to global staffing models, China’s legal interpretation of employment makes outsourcing far more restrictive.

Definition and Scope in the Chinese Market

In China, manpower outsourcing is often confused with staffing or EOR services. Legally, it is closer to labor dispatch, a regulated employment model governed by the PRC Labor Contract Law. Under this arrangement, workers remain legally employed by the outsourcing agency while performing duties for the client company.

However, China places strict limitations on which roles can be outsourced, the duration of assignments, and the proportion of dispatched workers within an organization. This makes manpower outsourcing unsuitable for many core or long-term roles.

How Manpower Outsourcing Works in China

A typical outsourcing arrangement involves three parties:

• The outsourcing provider (legal employer)
  
• The client company (day-to-day supervision)
  
• The employee (contracted through the vendor)
  

Payroll processing, statutory benefits, and contracts are managed by the outsourcing firm. However, co-employment risks remain high if the client controls work hours, performance reviews, or termination decisions. This is where many foreign companies unintentionally violate Labor Laws in China, leading to fines, employee disputes, and retroactive benefit payments.

Why Global Companies Outsource Manpower in China

Despite the risks, manpower outsourcing continues to attract global businesses—particularly those entering China for the first time.

Speed, Cost Control, and Local Expertise

Outsourcing allows companies to:

• Hire quickly without setting up a legal entity
  
• Access local HR expertise
  
• Reduce administrative overhead
  
• Manage payroll and benefits through a local provider
  

For short-term projects, pilot teams, or non-core roles, outsourcing can still be a viable option provided compliance is managed carefully.

When Outsourcing Makes Sense—and When It Doesn’t

Manpower outsourcing works best for:

• Temporary assignments
  
• Non-core support roles
  
• Market research or project-based teams
  

However, for full-time employees, IP-sensitive roles, or leadership positions, outsourcing often creates long-term legal exposure. This is why many companies now prefer Employer of Record in China solutions for sustainable hiring.

Labor Laws in China You Must Understand Before Outsourcing

China’s labor framework prioritizes employee protection, and non-compliance is heavily penalized.

Key Employment Regulations Affecting Outsourcing

Under Chinese law:

• Written employment contracts are mandatory
  
• Employees may qualify for open-ended contracts after two fixed terms
  
• Labor dispatch is restricted to temporary, auxiliary, or substitute roles
  

Violating these rules can trigger forced direct employment, penalties, or lawsuits.

Payroll, Social Insurance, and Statutory Contributions

Payroll compliance is one of the biggest challenges in China. Employers must contribute to:

• Pension insurance
  
• Medical insurance
  
• Unemployment insurance
  
• Work injury insurance
  
• Maternity insurance
  
• Housing Provident Fund
  

Contribution rates vary by city, making China payroll outsourcing highly complex. Errors often surface during audits or employee exits.

Manpower Outsourcing vs Employer of Record (EOR) in China

The biggest decision global companies face is choosing between traditional outsourcing and EOR.

Key Differences in Legal Responsibility

Why Global Companies Are Shifting to EOR Models

An EOR in China directly employs workers on behalf of the client, taking full responsibility for:

• Employment contracts
  
• Payroll and statutory benefits
  
• Tax filings
  
• Terminations and severance
  

This removes co-employment risk and ensures full compliance with Labor Laws in China, making EOR the preferred model for 2026.

Criteria to Evaluate Manpower Outsourcing Companies in China

Choosing the wrong partner can expose your business to severe compliance risks.

Compliance Coverage and Legal Structure

Evaluate whether the provider:

• Holds valid labor dispatch licenses
  
• Employs workers directly
  
• Covers city-level compliance differences
  
• Understands foreign employer obligations

Payroll Accuracy, Data Security, and Reporting

CFOs should prioritize:

• Transparent payroll breakdowns
  
• Secure employee data handling
  
• Monthly compliance reports
  
• Clear audit trails

Key Services Offered by Recruitment Companies in China

Recruitment companies and manpower outsourcing providers in China typically deliver:

• Recruitment & Staffing: Recruitment companies in China manage temporary, permanent, and project-based hiring for industries like tech, logistics, and finance.
  
• Payroll & Payslip Generation: Providers calculate wages, deduct IIT, and manage social insurance and housing fund contributions while issuing compliant payslips.
  
• Leave & Absence Management: Tracking of statutory annual leave, public holidays, maternity/paternity leave, and sick leave.
  
• Employer of Record (EOR): Enables global firms to hire employees legally in China without setting up a WFOE.
  
• Contractor & Freelancer Compliance: Ensure compliance with Chinese tax laws and prevent risks of misclassification.
  

Suggested Read: Staffing Agencies in China: Complete Guide

10 Best Manpower Outsourcing Companies in China (2026)

Choosing the right manpower outsourcing partner in China is less about brand size and more about legal employer responsibility, payroll accuracy, and labor law compliance. Below is a curated list of the 10 best manpower outsourcing companies in China, evaluated through a global employer lens with special attention to compliance, scalability, and risk exposure.

1. Asanify

Asanify is a global HR, payroll, and EOR platform that helps companies hire in China without establishing a WFOE. Its platform integrates payroll, leave management, and contractor compliance with Chinese labor laws and tax requirements. Asanify is particularly valuable for foreign businesses entering China, as it eliminates the need for costly entity setup while ensuring full compliance with city-specific regulations. Its scalable model supports startups, SMEs, and global enterprises alike, making it a top choice for fast, compliant expansion.

Key Features:

• EOR services across China and APAC.
  
• Automated payroll with compliant payslips.
  
• Attendance and leave tracking in line with Chinese law.
  
• Contractor management with tax compliance.
  
• Unified HR and payroll platform.
  

Best For: Startups, SMEs, and global companies entering China.

2. FESCO (Foreign Enterprise Service Corporation)

FESCO is one of China’s oldest and largest HR outsourcing companies, known for supporting multinational corporations in employment and payroll. With decades of experience, it has deep expertise in navigating China’s labor laws and administrative systems. FESCO’s nationwide network makes it ideal for large employers managing operations in multiple cities. Its strong government relationships also provide clients with reliable compliance and regulatory support.

Key Features:

• Payroll outsourcing and tax compliance.
  
• Recruitment and staffing services.
  
• Benefits administration and social insurance handling.
  
• HR advisory for foreign companies.
  
• Strong presence in major Chinese cities.
  

Best For: Multinationals needing full-service HR outsourcing in China.

3. Randstad China

Randstad is a global staffing leader with strong operations in China. It offers recruitment and HR outsourcing across finance, IT, and manufacturing. Randstad is widely respected for its digital-first recruitment platforms, which allow employers to quickly access talent from its extensive candidate database. Its ability to combine international hiring standards with local compliance knowledge makes it especially useful for multinational corporations expanding in China’s fast-moving sectors.

Key Features:

• Temporary and permanent staffing.
  
• Payroll processing with IIT compliance.
  
• Training and upskilling solutions.
  
• Workforce planning and advisory.
  
• Nationwide candidate database.
  

Best For: Large enterprises hiring across multiple sectors.

4. Adecco China

It is a global staffing firm with extensive coverage in China, serving industries such as manufacturing, IT, and logistics. Adecco has a strong track record of helping companies scale during seasonal or peak demand cycles, particularly in China’s e-commerce and logistics industries. Its services are backed by localized compliance expertise, ensuring that payroll and social insurance requirements are met in every city. With its global reputation, Adecco is also a preferred partner for companies seeking consistent HR solutions across multiple regions.

Key Features:

• High-volume temporary staffing.
  
• Payroll outsourcing and compliance.
  
• Customized workforce solutions.
  
• Employee training programs.
  
• Localized expertise in city-specific regulations.
  

Best For: Companies requiring large-scale workforce support.

5. Manpower China

Manpower is widely recognized in China for providing staffing and HR outsourcing across IT, engineering, and industrial sectors. It has built a strong reputation for sourcing specialized technical talent in China’s booming innovation hubs like Shenzhen and Shanghai. Manpower also provides flexible workforce models to help businesses manage project-based and short-term hiring. Its ability to adapt global HR best practices to China’s regulatory environment makes it a reliable choice for compliance-driven companies.

Key Features:

• Sector-specific recruitment.
  
• HR outsourcing with Chinese compliance.
  
• Project-based hiring solutions.
  
• On-demand recruitment for seasonal demand.
  
• Global standards adapted to Chinese laws.
  

Best For: Companies in tech, engineering, and industrial markets.

6. Hays China

Specializes in professional recruitment in China, particularly in finance, technology, and life sciences. Hays is known for its ability to fill highly skilled positions where competition for talent is intense. Its strong international networks also make it effective at sourcing overseas talent for businesses operating in China. With compliance-focused processes and industry-specific expertise, Hays is a leading choice for employers seeking executive or professional hires.

Key Features:

• Executive search and professional recruitment.
  
• HR consulting and workforce planning.
  
• Access to international talent pools.
  
• Sector-specific expertise.
  
• Compliance-focused hiring.
  

Best For: Employers hiring professionals in high-skill industries.

7. China Star Consulting

China Star Consulting provides HR outsourcing and EOR services for foreign enterprises entering China. It is especially popular with SMEs and startups looking for cost-effective entry into the Chinese market. Its services include visa and work permit processing, making it a strong partner for companies relocating expat employees. By focusing on compliance-heavy functions like payroll and contractor management, China Star Consulting simplifies expansion for foreign businesses unfamiliar with China’s complex regulatory system.

Key Features:

• Employer of Record services.
  
• Payroll management and tax filings.
  
• Visa and work permit processing.
  
• Contractor management.
  
• Local labor law expertise.
  

Best For: Foreign companies seeking EOR-focused solutions in China.

8. CIIC (China International Intellectech Corporation)

CIIC is a leading Chinese HR outsourcing provider with a strong focus on payroll and social insurance administration. It has one of the largest service networks in China, making it a top choice for companies with employees spread across multiple provinces. CIIC also offers benefits administration, helping businesses manage mandatory housing funds and pensions. Its longstanding reputation for compliance and government alignment gives clients confidence when managing large-scale HR operations.

Key Features:

• Payroll processing with IIT and social contributions.
  
• Recruitment and staffing services.
  
• Benefits and housing fund management.
  
• Nationwide compliance expertise.
  
• HR consulting.
  

Best For: Large companies requiring payroll accuracy and compliance.

9. Top FESCO Adecco (joint venture)

Top FESCO Adecco is a joint venture between FESCO and Adecco, offering integrated manpower outsourcing services in China. This unique collaboration combines FESCO’s local expertise with Adecco’s global reach, making it one of the most powerful HR partnerships in the country. It provides end-to-end HR services, from staffing to payroll, for both domestic and international clients. Companies choose FESCO Adecco for its ability to deliver both scale and compliance across multiple industries.

Key Features:

• Staffing and recruitment solutions.
  
• Payroll processing with compliance.
  
• Social insurance and benefits management.
  
• HR advisory and consulting.
  
• Pan-China coverage.
  

Best For: Multinationals requiring hybrid local-global HR solutions.

10. Links International

Links International is an Asia-focused HR outsourcing provider with operations in China. It specializes in payroll, EOR, and HR technology solutions. Links International is highly regarded for its technology-driven approach, providing HR automation tools that streamline workforce management. With expertise across Asia-Pacific, it is particularly valuable for companies managing employees in multiple countries, offering consistent compliance and reporting systems.

Key Features:

• Payroll outsourcing with IIT compliance.
  
• EOR services across APAC, including China.
  
• HR technology integration.
  
• Leave and attendance tracking.
  
• Contractor management solutions.
  

Best For: Companies expanding across China and wider Asia-Pacific.

Comparison Table: Best Manpower Outsourcing Companies in China (2026)

How to Select the Right Manpower Outsourcing Partner in China

When selecting a provider in China, consider:

• Compliance Expertise: Ensure experience with labor contracts, IIT, and social contributions.
  
• City-Specific Knowledge: Providers must manage variations across Shanghai, Beijing, Shenzhen, and other regions.
  
• Payroll Accuracy: Look for providers offering automated payroll with compliant payslips.
  
• Industry Specialization: Hays is ideal for professional recruitment, while Adecco and Manpower excel in manufacturing.
  
• Global Scalability: Platforms like Asanify simplify hiring for global companies.
  

Benefits of Using Asanify for Manpower Outsourcing in China

Asanify offers a comprehensive workforce management solution designed for China’s complex regulatory environment.

• Employer of Record (EOR) in China: Hire employees without establishing a WFOE.
  
• Automated Payroll: Generate compliant payslips with IIT and social insurance contributions.
  
• Leave Management Tools: Track annual leave, public holidays, and sick days digitally.
  
• Freelancer Compliance: Manage independent contractors with full tax compliance.
  
• Unified HR Platform: Centralize payroll, attendance, HR, and compliance.
  

For companies hiring in China, Asanify ensures faster, compliant, and cost-effective workforce management.

Suggested Read: Understanding Labour Laws in China: A Complete Guide

Conclusion

China offers immense opportunities with its skilled workforce and vast markets, but complex labor laws, city-specific regulations, and strict payroll requirements make HR management challenging. Outsourcing is often the most efficient solution.

While local providers like FESCO, CIIC, and FESCO Adecco dominate the market, Asanify is the top choice for global employers. With its EOR services, payroll automation, and compliance-driven platform, Asanify ensures seamless and risk-free hiring in China.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.