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Foreign Human Resource Agencies Allowed to Operate in China

Overseas human resources agencies can enter the Chinese personnel market in the form of joint venture enterprises under a provisional regulation which will take effecton Nov. 1.

The Provisional Regulations on Management of Sino-Foreign Joint Venture Human Resource Agencies stipulate that overseas enterprises, companies and other businesses engaged in human resources business for over three years can set up joint venture intermediaries with Chinese partners.

This was the first step for China to open its human resources market and the government would further open it as circumstances allowed, said an official with the Ministry of Personnel.

The overseas firms are required to have a sound reputation, says the regulation.

The joint venture should have at least 300,000 US dollars of registered capital with the overseas party providing at least 25 percent and the Chinese party at least 51 percent, the regulationsstipulate.

Permanent offices, reasonable financing, office facilities and competent full-time staff with college degrees are also necessary.

The joint ventures can collect, arrange, and issue human resources information and carry out recommendations, employment, rating and training according to business scopes approved by provincial personnel authorities.

Before 2001, some foreign human resources bodies had been operating representative and business offices, according to the ministry.
 
(Xinhua News Agency October 9, 2003)

 

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