Category: Expertise

China: The New Frontiers of HR Management

China: The New Frontiers of HR Management

Human resource management in China is not only about administration and recruitment, but also about digital transformation, corporate culture and innovation. To succeed in the Chinese market, European companies need to understand and embrace these new dynamics.


This article aims to take you to the heart of emerging HR management trends in China and provide you with the keys to effectively integrate them into your business strategy. Discover how digitalization, the right corporate culture and innovative approaches to recruitment and training can not only improve your operations in China, but also pave the way for new growth opportunities.

Digital transformation and HR management in depth

The digital revolution in China is reshaping the landscape of human resource management. Artificial intelligence (AI), big data, and automation are now the pillars of HR efficiency. These revolutionary tools are helping to optimize recruitment, training and talent retention.

Predictive AI for faster, more accurate hiring

By massively analyzing market data and the internal capabilities of the company’s talent, AI can anticipate the company’s needs to more effectively manage the training and skills to target and refine the recruitment process.

Once the company’s skill requirements have been defined, these new tools can be used to more efficiently and accurately analyze the profiles to be recruited. Instead of sifting through piles of resumes and cover letters, which is time-consuming and inefficient, the algorithms allow each document to be examined in detail, extracting all the information and comparing it to the company’s real needs, resulting in only those profiles that match the search. This productivity gain has been key in the Chinese job market, which is equal to that of the United States + Europe.

Big data for a deeper understanding of employees

Big Data enables in-depth analysis of employee behavior and performance, providing valuable insights for human resource management decisions.

By analyzing data at scale, such as job satisfaction, performance trends, and engagement, you can anticipate potential turnover and find solutions. These analytics can also be used to identify talent within the organization, such as leadership qualities that may be useful for internal succession planning.

Automation and Operational Efficiency

Automating day-to-day HR processes such as payroll, benefits, and performance reviews frees up valuable time for teams. This allows them to focus on higher value-added tasks, such as defining solutions to analyzed issues like talent development or employee engagement.

Challenges and Opportunities for European Companies

For European companies operating in China, adopting these technologies is not without its challenges. It involves not only investment in technology and training, but also cultural and organizational adaptation. However, the potential benefits in terms of operational efficiency, cost reduction and improved employee satisfaction and retention are significant.

By adopting these technologies, European companies can not only improve their operations in China, but also gain a significant competitive advantage in this dynamic and constantly evolving market.

Corporate culture in the Chinese era

Business culture in China is a unique blend of ancient traditions and modern innovations. To succeed, European companies must not only understand this culture, but also integrate it into their human resource management. This means recognizing the importance of values such as hierarchical respect and flexibility in the face of change.

Blending Western and Chinese HR practices

Cross-cultural management is a major challenge for international companies. It is essential to adapt approaches to leadership, communication and motivation to meet the expectations of Chinese employees and to strengthen cooperation within teams.

Case studies: Companies achieving integration

European companies have already achieved this integration. For example, some have adopted flexible management strategies that encourage autonomy while respecting Chinese hierarchical structures. Others focus on intercultural training for their managers, enabling them to navigate effectively in China’s complex cultural landscape.

Implications for European companies

For European companies, adapting to Chinese business culture is critical to recruitment, talent retention and overall performance. Understanding and balancing Western and Chinese practices can not only improve their operational efficiency in China, but also enrich their global corporate culture with diverse perspectives.

Recruitment and Training Challenges and Solutions

The Chinese labor market is characterized by intense competition for the best talent, requiring language skills and an understanding of local conditions. European companies need to recognize these challenges in order to develop effective recruitment and training strategies.

Innovative recruitment techniques

Using China-specific online recruitment platforms, adopting AI-based assessment methods and employing targeted recruitment strategies can help companies attract local talent. It is also important to enhance the employer brand by highlighting the career development opportunities and unique benefits offered by the company.

Training and integration programs

Employee training and integration is critical to long-term success. This includes not only technical training, but also cultural and linguistic awareness. Mentoring programs, cross-cultural workshops, and ongoing professional development opportunities can significantly improve employee engagement and performance.

Success stories

European companies in China have implemented innovative training programs that combine Western and Chinese best practices to promote greater mutual understanding and improved performance. These programs are not limited to technical training, but also include cultural and linguistic aspects to facilitate better integration into the Chinese work environment.

Preparing for the future of HR management in China

Navigating the complex landscape of human resource management in China requires a deep understanding of emerging trends and specific challenges. Embracing new technologies, understanding Chinese business culture and being innovative in recruitment and training are essential for success.

With over two decades of experience, VVR International is ideally placed to guide European companies on this adventure. Whether it’s business development, setting up industrial partnerships, delegating administrative procedures or accessing local and foreign talent, VVR International offers expert support.

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Navigating the New Wave of Opportunities: M&A Expansion in China

Navigating the New Wave of Opportunities: M&A Expansion in China

The Chinese market, with its impressive growth trajectory, has established itself as fertile ground for mergers and acquisitions (M&A), creating a landscape rich in opportunities for international companies ready to venture in. In 2023, the data reveals a dynamic M&A scene, marked by figures that underline the renewed confidence of investors and the vitality of the market.

A vibrant M&A scene

The Chinese M&A market had a dazzling year in 2023, with inbound deals jumping 68% and outbound deals growing by 31%, a clear indication of China’s growing appeal to both local and international investors.

Consolidation in sectors such as technology, renewable energy and financial services reflects a maturing economy seeking to capitalise on global trends and innovations. Renewable energy, for example, has captured attention thanks to government-backed initiatives, propelling China to global leadership in the sector.

Focus on Sectors and Key Transactions

M&A activity was concentrated mainly in the industrial sector, which accounted for 21.5% of the market or $66 billion, followed by commodities (14.6%) and high technology (13.3%). This illustrates a strategic interest in key industries that are at the heart of China’s economic growth and integration into the global economy. A major acquisition this year was the partial acquisition (10%) of Rongsheng Petrochemical by Aramco Overseas Co for $3.4 billion.


Investment focus : Beijing, Shanghai and Guangzhou

The 2023 M&A market in China highlights the importance of leading cities as investment centres. Beijing recorded $70 billion in transactions, Shanghai followed closely with $60.5 billion, and Guangzhou posted $58 billion. Despite a downward trend on the previous year, these figures confirm the crucial role of these metropolises as strategic investment hubs in China, acting as incubators for companies setting up there.

This regional dynamic underlines the potential of these cities not only as economic centres, but also as privileged points of entry for international companies exploring opportunities in China. (More information on the main Chinese cities in our article : here)

Navigation Challenges and Strategies

Although investment flows and the Chinese market in general are growing exponentially, there are a multitude of factors that need to be taken into account in order to set up effectively in this market, including regulatory nuances, cultural differences and business practices. Success in China requires a deep understanding of the local market, the ability to establish solid strategic partnerships and the flexibility to adapt to market dynamics.

Conclusion: A Future of Mutual Growth

The M&A boom in China is an open invitation to international companies to explore this market. With a strategic approach and an in-depth understanding of current trends, companies can not only successfully establish themselves in China but also contribute to the country’s dynamic economy, creating a virtuous circle of growth and innovation.

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Everything You Need to Know About Outstaffing and PEO Services in China

Everything You Need to Know About Outstaffing and PEO Services in China

Outstaffing and Professional Employer Organization services, while commonplace in many countries, take on a special dimension in China. With its booming economy and ever-evolving market, China has become a popular destination for many foreign companies looking to expand their international presence. But setting up business in such a vast and complex country is not without its challenges. That’s where outstaffing and PEO services come in. 

This mechanism, which allows a company to delegate the administrative management of its employees to a third-party company, offers a flexible solution tailored to the specifics of the Chinese market. 

What is outstaffing in China?

Outstaffing is a mechanism whereby a company, instead of hiring an employee directly, uses the services of an outstaffing company. The company hires the professional and “leases” him or her to the client company, while taking care of all administrative, tax and social obligations associated with the employment.

In China, the concept of “portage salarial” has gained ground in recent years, not least because of the increasing complexity of labor regulations. For foreign companies, it provides a practical solution for entering the Chinese market without having to navigate the maze of local laws. For example, employment contracts, benefits and tax obligations are strictly regulated in China, and an outstaffing company must be well informed to ensure compliance.

Advantages of Outstaffing and PEO Services for Foreign Companies

When entering the Chinese market, foreign companies often face a number of challenges, from understanding local regulations to navigating China’s unique cultural landscape. Freelance management offers several advantages to help overcome these obstacles:

Ease of entry into the Chinese market

With outstaffing and PEO services, companies can quickly and efficiently start operations in China without having to set up a full legal entity, which can be costly and time-consuming.

Reduce Legal and Financial Risks

By entrusting employee management to an experienced “portage” company, companies can ensure compliance with all local regulations, minimizing the risk of fines or litigation.

Flexibility and adaptability

Outstaffing and PEO services allow companies to quickly adapt to market changes. Whether increasing or decreasing headcount, companies can respond in real time without the usual constraints associated with hiring and firing.

Focus on core business

By delegating administrative and human resource management to a “portage” company, companies can focus on what they do best: developing their core business and expanding their presence in the Chinese market.

Challenges and Cautions of Outstaffing and PEO Services in China

While there are many benefits to using a contingent workforce, it is important for foreign companies to understand the potential challenges and take appropriate precautions:

Understand local regulations

China has its own labor laws and regulations, which may differ significantly from other countries. It is critical to work with a knowledgeable escort company to ensure compliance.

Respect cultural differences

Business practices, employee expectations and even communication standards may vary. A good understanding of Chinese culture can help avoid misunderstandings and build strong relationships.

Choose the right portage partner

Not all Portage companies are created equal. It’s important to choose a company with a solid reputation, local experience, and in-depth knowledge of the specifics of the Chinese market.

Avoid common pitfalls

Mistakes such as failure to comply with tax regulations or ignorance of workers’ rights can be costly. Careful preparation and constant vigilance are essential.

The bottom line: Outstaffing and PEO services, a lever for your China expansion

The Chinese market, with its immense potential and diverse opportunities, attracts many foreign companies. However, navigating China’s complex landscape requires a strategic approach. Outstaffing and PEO services are emerging as an effective solution that offers flexibility, compliance and simplified entry into the Chinese market. By partnering with a competent outstaffing company, companies can not only overcome the challenges of expanding into China, but also take advantage of the unique benefits this model offers. 

As the only European company with the necessary licenses, such as the Labor Dispatch License, VVR International can offer you a legal, tailor-made “portage salarial” solution. Whether you need to quickly set up an operational team, delegate complex administrative procedures or access the best local and foreign talent, VVR is there to help.

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Outstaffing and PEO service in China: Legal news to know

Outstaffing and PEO service in China: Legal news to know

Professional Employer Organization PEO service in China is an advantageous solution for foreign companies wishing to establish themselves in this dynamic market. As the economy is constantly evolving and the legal framework is rapidly adapting, it is crucial for companies to be aware of the rules governing contingent workforce management in China. The purpose of this article is to inform companies of the latest legal developments regarding the hiring and taxation of Chinese or expatriate employees. As evidenced by the extension of expatriate tax benefits until 2027, China continues to open its doors and attract foreign talent and skills. 

China: Fertile Ground for Business Expansion

With a population of over 1.4 billion and a growing middle class, China offers immense potential for foreign companies. The country is a global hub for manufacturing, technology and services. Through the use of “portage salarial”, companies can access this lucrative market while minimizing risk and investment. By simplifying administrative and legal procedures and delegating them to a competent Outstaffing company such as VVR International, companies can concentrate on their core business. What’s more, “portage salarial” offers greater flexibility than setting up a local company when it comes to implementing a strategy in China, and enables rapid adaptation to market changes. In an economic environment as dynamic as China’s, this flexibility is an advantage for initiating and sustaining local operations.

New Legislative Developments and Their Impact

In an effort to attract more foreign investment, China is constantly adjusting its legislation on professional management. Recent legislative changes are designed to simplify procedures for businesses while providing greater protection for both local and foreign workers. For foreign companies, this means a better understanding of their legal obligations, a reduction in the risks associated with non-compliance, and greater confidence in the freelance management process. In addition, the introduction of these new regulations demonstrates China’s commitment to creating a favorable and transparent business environment for foreign companies.

Taxation: benefits for foreigners extended until 2027

One of the most notable aspects of China’s recent developments concerns taxation. With the aim of encouraging more expatriates to work in China and making the country more attractive to international talent, the Chinese government has decided to extend tax benefits for foreigners until 2027. This measure, which was originally planned for a shorter period of time, offers significant benefits to foreign workers in terms of tax relief. 

Navigating the Chinese regulatory landscape

In a country where regulations are rapidly evolving, it is imperative for companies to keep abreast of the latest legislative changes. With its growing economy and increasing openness to foreign businesses, China frequently adjusts its laws to meet changing market needs.

Preparing for the future of professional management in China

As China continues to assert itself as a global economic power, the opportunities for foreign companies are greater than ever. With its advantages and flexibility, professional management is an invaluable tool for those seeking to penetrate this dynamic market. However, effective legal intelligence is essential to ensure compliance and maximize the benefits of China’s labor and tax laws. Companies that invest in regular legal intelligence can anticipate and adapt quickly.

For foreign companies, working with an experienced, locally-established partner like VVR International is the key to efficient and rapid recruitment. What’s more, our HR team will keep you abreast of any legal developments that may affect your teams in China and will support and advise you at every stage of the recruitment process and in setting up your collaboration.

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Commercial success in China: Know Your Consumers

Commercial success in China: Know Your Consumers

The Chinese market may seem vast, but it is far from homogeneous. So while there are real opportunities for many business sectors, it is essential to study the structure of this market and its dynamics in advance. Indeed, if you want to do business in China for the long term, it’s essential to understand the mindset of the Chinese consumer. Influenced by a unique combination of traditional culture and modernity, these consumers have specific expectations that companies must recognize and satisfy.

Understanding the Chinese consumer

Understanding the Chinese consumer is the first step for any company looking to expand into China. A brief overview of consumer habits and interests.

Cultural values and their influence on buying habits

China, with its thousands of years of history, has a deeply rooted culture that can influence buying behavior. Certain values, such as respect for family and the value of saving, guide consumer choices and set the pace for certain purchases. For example, on special occasions such as Chinese New Year, it’s common to give expensive gifts to show respect and affection.

The Importance of Brand and Quality

Chinese consumers place a high value on brand reputation and product quality. A well-known brand is often associated with reliability and superior quality. For this reason, many foreign companies with a good international reputation have a clear advantage in the Chinese market.

The Role of Social Media and Influencers

With the rise of technology and the mass adoption of smartphones, social media plays an important role in the lives of Chinese consumers. Platforms such as TikTok have become essential sources of information for consumers. Influencers have a significant impact on purchasing decisions as they are perceived as reliable and authentic sources of information. They drive this digital commerce by offering live streaming on the main Chinese platforms, where they present products and generate a sometimes colossal volume of sales The rise of live streaming in China, a hot new sales channel – VVR International, strategic development, production, sourcing, distribution…

Meeting consumer expectations

Responding effectively to the needs of Chinese consumers requires an adapted and innovative approach, supported by a tailored marketing strategy and a multi-channel distribution network – Supply Chain & Distribution – VVR International, strategic development, production, sourcing, distribution… Here’s how companies can adapt to these expectations to ensure their success.

The Importance of Localizing Products and Services

China is a huge country with cultural and regional diversity. What works in one region may not be as effective in another. Therefore, localization of products and services is critical. This means not only language translation, but also adapting products, packaging and communication to local tastes, preferences and needs.

Customer service: a key element in gaining trust

Chinese consumers place a high value on customer service. Fast, efficient and courteous service can have a significant impact on brand perception. What’s more, word of mouth is powerful in China. A single bad customer experience can quickly spread across social networks and damage a company’s reputation.

Current and future trends to watch

The Chinese market is evolving rapidly. Companies need to stay on top of the latest trends and adapt accordingly. For example, the rise of e-commerce and certain platforms unknown in Europe, the growing importance of sustainability, and the appeal of local products are all trends that companies need to consider in their strategy.

Tips for foreign companies

Entering the Chinese market can seem daunting, but with the right strategies and a thorough understanding of the terrain, foreign companies can thrive. Discover some essential tips for successfully navigating this dynamic market.

Market Research and Local Partnerships

Before entering the Chinese market, it’s essential to conduct in-depth market research to understand local nuances. Working with local partners can also be advantageous, as they have intimate knowledge of the market and can help navigate the complex Chinese business landscape.

Adapt Marketing and Communications Strategies

Marketing and communications in China are very different from those in the West. Companies must adapt their messages to resonate with Chinese consumers. This may include using local celebrities for advertising campaigns or participating in local festivals and events to increase brand exposure. Relying on a local employee to represent the brand or product in China is an advantage when launching in China. Thanks to Portage Salarial, it is possible to hire a Chinese sales representative without having to set up a legal entity in China. In fact, VVR International provides a legal home for your employee. As part of our “PEO services, we manage your employee’s administrative affairs and act as an intermediary for the payment of salaries and other fees;

Understanding Local Regulations and Standards

China has its own regulations and standards for trade, quality and safety. Foreign companies need to ensure that they comply with these regulations and keep abreast of developments to avoid legal problems. This may involve working with local experts or consultants to ensure compliance.

The bottom line: Navigating the Chinese market with confidence

China, with its ever-evolving market and demanding consumers, offers immense opportunities for companies that are able to adapt and innovate. By focusing on localization, building strategic partnerships, and staying on top of the latest trends, companies can thrive in the Chinese market.

With over 24 years of experience, VVR International has assisted numerous European companies in their industrial and commercial development in China. Whether you’re looking to establish local brands, sell through distribution networks, recruit the best local talent on your behalf, or use the PEO services, VVR International’s teams are ready to assist you in your development project.

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Strategies for standing out in the ultra-competitive Chinese market

Strategies for standing out in the ultra-competitive Chinese market

The Chinese market is attractive, but with aggressive local competition and consumers with ever-higher expectations, how can a foreign company really stand out and win the trust of Chinese consumers? In this article, we’ll explore some proven tips for succeeding in this dynamic and sometimes unforgiving market, even in the face of fierce competition. Whether you’re new to the market or looking to consolidate your presence, these strategies could be the key to your success in China.

Understand and adapt to the Chinese culture

Entering the Chinese market without a thorough understanding of its culture and nuances is a common and costly mistake. Here are some key elements to keep in mind:

Importance of localization:

Chinese consumers appreciate brands that speak to them in their own language and respect their customs. This is more than just translation. Localization means adapting your messaging, design, and even aspects of your product or service to resonate with local audiences. Implementing a targeted, specific marketing strategy is essential to establishing yourself in the marketplace.

Cultural nuances:

From the color of packaging to local festivals, being aware of cultural nuances can help your company avoid major faux pas. For example, red is a lucky color in China, while white is often associated with mourning.

Work with local partners: Working with local partners, distributors and/or retailers can not only ease market entry, but also enhance your brand’s credibility. They can help you navigate regulatory complexities and better understand consumer preferences.

Maximize your digital presence

China is one of the most connected countries in the world, with a highly active population on digital platforms. Here’s how to optimize your online presence to reach and engage this audience:

The Chinese Social Media World:

In China, the main social networks are WeChat, Weibo, and Douyin. Each of these platforms has unique features and audiences that require tailored content strategies. For example, WeChat is ideal for CRM, while Douyin (the equivalent of TikTok) is essential for viral marketing. L’essor du live streaming en Chine, nouveau canal de vente en vogue – VVR International, développement stratégique, production, sourcing, distribution…

E-commerce and distribution platforms:

With platforms such as Tmall, and Pinduoduo, online commerce is a booming industry in China. Pinduoduo : l’avenir du e-commerce chinois – VVR International, développement stratégique, production, sourcing, distribution…. It’s essential to provide a smooth user experience and understand the nuances of Chinese e-commerce, such as specific “shopping days” (e.g. Singles’ Day).

Tailor content to the Chinese audience:

Create content that speaks directly to your Chinese consumers. This may mean working with local KOLs, producing customized videos, or even launching advertising campaigns specific to certain regions or cities.

Build strategic partnerships and collaborations

Collaboration is often the key to success, especially in a market as diverse and vast as China. Here’s how you can use collaborations to strengthen your position:

Work with recognized local brands:

Partnering with established Chinese brands can open doors for you and make it easier for the local public to accept your product or service. These collaborations can take the form of co-branding, cross-promotion, or joint marketing campaigns.

Attend trade shows and local events:

These events are an opportunity to meet potential partners, understand market trends, and showcase your products directly to Chinese consumers.

The Art of Succeeding in China: Adapt and Persevere

The Chinese market can be complex to navigate, but with a thorough understanding of the culture, the implementation of a multi-channel distribution strategy, and strategic alliances, your company can launch and sustain its business in China.

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Recruiting in China: Avoid classic mistakes

Recruiting in China: Avoid classic mistakes

Entering the Chinese market requires a well-thought-out strategy, especially when it comes to recruitment. The Chinese market is not only vast, it’s also complex to understand. Navigating the Chinese business landscape without making mistakes can seem like a daunting task. But with the right information and careful preparation, it’s possible. This article aims to guide you through the common pitfalls of recruiting and managing human resources in China to help you find and hire the best talent.

Understanding the Chinese Job Market

China is unique, both culturally and economically. Before you begin the recruitment process, it’s important to understand some of its unique characteristics.

Cultural peculiarities:

Chinese culture emphasizes hierarchy and respect. During interviews, for example, it’s not uncommon for candidates to be modest and downplay their accomplishments. Being able to read between the lines is essential to accurately assess their abilities.

The value of guanxi:

In China, relationships, or “guanxi,” play a paramount role. Guanxi is more than a professional network. It’s a complex web of personal relationships that can influence hiring decisions. Failing to take this into account can mean missing out on quality candidates or, conversely, leading you to make less prudent hires.

In short, the key is to adapt and integrate rather than impose a Western approach.

Common recruiting mistakes to avoid:

Success in China often depends on the ability to learn and adapt quickly. To avoid common faux pas, here are a few mistakes to avoid:

Inappropriate job offers:

Simply translating a job posting is not enough. It’s crucial to contextualize it for the Chinese market. For example, expected benefits and job descriptions may differ from those in the West. The choice of job title is also an issue to be aware of in order to receive appropriate applications.

Underestimating the employer brand:

In China, a company’s image is paramount. Candidates often research a company’s reputation before applying. Make sure your brand is strong and well-received locally.

Ignore local regulations:

Chinese labor laws are strict and can vary from region to region. Make sure you are in compliance to avoid potential penalties.

While these mistakes are common, they can be avoided with proper preparation and in-depth knowledge of the local context.

How to streamline the recruitment process ?

To successfully recruit in China, here are a few key tips to optimize your approach:

Work with local experts:

Working with local specialists or recruitment agencies such as VVR International, which has a dedicated HR department and team, can help you better understand the professional landscape, education system, training courses and diplomas awarded, while effectively targeting ideal candidates.

Focus on ongoing training:

Chinese employees value training and development opportunities. Offer attractive programs to attract and retain top talent.

Multi-channel approach:

Don’t limit yourself to traditional recruitment platforms. Use a combination of job boards, social networks and networking events to reach a wide range of potential candidates.

Getting started in China requires a thoughtful, customized approach. Follow these tips to maximize your chances of success.

Enter the Chinese market with confidence

There is no denying the potential of the Chinese market. However, the key to success lies in a thorough understanding of its unique landscape and cultural idiosyncrasies. By avoiding common recruitment mistakes and adopting a well-thought-out strategy, companies can not only succeed, but also build lasting and beneficial relationships with their Chinese employees.

Never underestimate the importance of preparation. By investing time and resources in a thorough understanding of the market, working with local experts, and continually developing your team, you’ll be well positioned to make the most of this dynamic market.

Enter China with confidence, but always with a willingness to learn and adapt. Your success will depend as much on your preparation as on your ability to evolve.

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Journey to the Heart of China’s Major Business Cities

Journey to the Heart of China’s Major Business Cities

With its sustained growth and immense market potential, China has become a popular destination for many foreign companies. However, the country is vast, and each city is a universe in itself, with its own peculiarities and opportunities. The art of succeeding in China lies not only in understanding its culture and economy, but also in choosing the right location in line with your strategy and objectives.

The economic pillars: Shanghai and Beijing

Shanghai: The Gateway

Formerly known as the “Paris of the East”, Shanghai is now at the heart of China’s economy. In addition to being a major financial center, this dynamic metropolis is a cultural melting pot that attracts talent from around the world. Its importance as a commercial hub offers a wealth of opportunities for foreign companies, whether in finance, trade or technology. A large proportion of the population has considerable purchasing power and a lifestyle compatible with the consumption of Western products. Shanghai is therefore a prime market for foreign companies, whose strategic interest is reinforced by the rich industrial fabric nearby.

Beijing: the heart of the nation

Beijing’s splendor is not limited to its historical and architectural heritage. As the capital of China, it is the nerve center where the most important political decisions are made. This proximity to power is an asset for companies looking to build strong relationships with regulators or understand the nuances of government policy. It is also a popular tourist destination for foreigners, but especially for Chinese who take advantage of their vacations to spend a few days in the capital. Beijing is also home to a growing technology ecosystem, with Zhongguancun often referred to as the “Silicon Valley of China”. Between innovative start-ups and established companies, the opportunities for foreign companies here are vast.

Innovation hubs: Shenzhen and Hangzhou

Shenzhen: the epicenter of innovation

Once a small fishing village, Shenzhen has become a global innovation hub over the past four decades. Today, it is home to technology giants such as Huawei and Tencent. The city’s electric atmosphere, combined with business-friendly policies and a commitment to innovation, make it a prime destination for start-ups and foreign technology companies.

Hangzhou: the cradle of entrepreneurship

Just an hour by train from Shanghai, Hangzhou, famous for its picturesque scenery, is the birthplace of e-commerce giant Alibaba. In recent years, the city has seen the emergence of a dynamic entrepreneurial environment supported by government initiatives. Hangzhou’s high-tech zones, such as the Qiantang River Valley Science and Technology Park, provide incentives for start-ups, and the presence of e-commerce leaders offers great opportunities for foreign companies to collaborate and integrate.

Diversity and potential: Guangzhou, Chengdu and Tianjin

Guangzhou: trading with the world

Guangzhou, one of China’s oldest trading cities, is still a major commercial hub, especially for import-export. The Canton Fair, China’s largest trade fair, attracts companies from all over the world every year. With privileged access to the Pearl River Delta, one of the world’s major manufacturing centers, Guangzhou is strategic for production and distribution-oriented companies.

Chengdu: Charm of the West

A world away from the hustle and bustle of the coastal cities lies Chengdu, the peaceful capital of Sichuan. Known for its pandas and spicy cuisine, the city is also a burgeoning technology hub. Thanks to government incentives, Chengdu is attracting both domestic and foreign companies. Its strategic location as a gateway to western China makes it ideal for companies looking to position themselves in this fast-growing market.

Tianjin: Industrialization and Modernity

Close to Beijing, Tianjin is a major industrial center with a modern infrastructure. It is home to several economic and technological development zones that facilitate the establishment of foreign companies. Tianjin is also a port city, which facilitates trade and export logistics.

Conclusion: Which destination to choose?

Although interconnected and open to the country as a whole, each city has its own advantages and challenges for companies looking to set up in China. The choice of location should be made after a careful assessment of your company’s needs and the opportunities each city has to offer. Whether you’re attracted by the dynamism of Shanghai, the innovation of Shenzhen, or the potential for expansion in Chengdu, it’s important to align your choice with your company’s long-term vision.

But it’s also important to remember that, far beyond its megacities, China has a wealth of densely populated, fast-growing secondary cities that could become the hubs of tomorrow. Analyzing and developing a strategy with the help of an expert with detailed knowledge of China’s economic geography, such as VVR International, can be the key to ensuring a successful first step in the country.

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Efficient Recruitment and Portage : Rapid and Successful Deployment in China

Efficient Recruitment and Portage : Rapid and Successful Deployment in China

The Chinese market offers strong economic potential and is attractive to international companies. However, there are a number of hurdles that need to be overcome in order to be successful. Firstly, recruitment is one of the biggest challenges for companies looking to set up in China. That’s why it’s wise to seek advice and support at this crucial stage of your development strategy in China. Once the talent is selected, it’s time to set the terms of the relationship, which will depend on the stage of development of the company in China. If you’re just starting out in this market, or if you want to assess the opportunities for your business in the country before considering setting up your own structure, then portage salarial may be the solution. Portage salarial allows companies that are not physically present in China to quickly hire a new employee. The employee can then perform tasks locally, delegating the administrative and legal management of the employee position to a third-party company based in China.

Understanding Portage and PEO services in China

Wage portage is a three-way relationship between a management company, a professional and a client company. Instead of hiring an employee directly, a company can go through a “portage salarial” company. The “portage” company then handles all the administrative and legal formalities associated with the employment. (

Why is this important in China?

Legal compliance:

The legal framework for employment in China is complex and evolving. Using the portage solution ensures that companies remain compliant with local laws and regulations without having to master them themselves.


Companies can test the Chinese market without setting up a legal entity. This allows for faster expansion with less financial risk.

Ease of administration:

All aspects of employment contracts, payments, benefits, and taxes are handled by the Portage company. This frees the client company from administrative management and allows them to focus on their core business.

Access to a talent network:

Freelance administration companies with a specialized HR department staffed by experts familiar with the Chinese labor market have privileged access to a network of qualified professionals. This local presence combined with HR expertise is particularly beneficial for foreign companies that are not yet familiar with the specifics of the Chinese labor market.

In many cases, the use of “portage salarial” is the most appropriate solution for companies wishing to expand in China. Not only does it allow you to navigate the legal labor landscape with confidence, it also offers unrivaled speed of implementation, flexibility and efficiency.

Strategies for Identifying and Attracting Top Talent through Portage and PEO services

A company’s success depends largely on the quality of its talent. This is especially true in China, where competition for skilled professionals is fierce and the talent pool is the size of the combined American and European pools. Here’s how companies can optimize their recruitment strategy:

Use local tools:

The Chinese market has its own job search and professional networking platforms. Rather than relying solely on Western platforms, companies should explore tools such as Zhaopin or 51Job to access a wider pool of candidates.

Work closely with specialized companies that offer Portage and PEO services in China:

By working closely with an HR consulting firm such as VVR RH, companies can benefit from sound advice on how to position their job offers, salary expectations, and more.

Consider Chinese culture:

Corporate culture in China is heavily influenced by traditional Chinese culture. Appreciating aspects such as respect, loyalty, and professional stability can make all the difference in an interview.

Provide training and development opportunities:

Chinese candidates value ongoing training opportunities. By partnering with Portage companies that offer such training, companies can stand out from the competition.

Contractual clarity:

Make sure the terms of employment are clearly defined. With Portage Salary, this is made easier because the Portage company manages these aspects while ensuring compliance.

It is important to recognize that the Chinese market is unique. By adapting the recruitment strategy to the needs and expectations of Chinese professionals, while relying on freelance administration, companies can truly maximize their chances of success.

Ensure Successful Integration of Employees Recruited Through Portage  and Strengthen Your Collaboration Through Incubation

The act of hiring is only the first step in an ongoing employer-employee relationship. To ensure a successful long-term collaboration, it’s critical to facilitate the smooth integration of new employees:

Thorough training:

Make sure employees fully understand their roles, responsibilities, and expectations. As part of their incubation services, Portage companies can often provide customized training and a welcome home for foreign employees to help bridge cultural or language gaps.

Ongoing support:

Assign a mentor or consultant to guide the new employee through the initial stages of integration. VVR International’s HR team ensures smooth communication between foreign companies and expatriates, and is on hand to help solve any problems or adjustment difficulties that new expatriates may encounter in China.

Facilitate administrative management:

One of the great strengths of independent management is that it simplifies administrative procedures. This allows new employees to focus on their work without having to worry about bureaucratic aspects such as obtaining insurance or managing tax deductions.

Company culture and values:

Although portage administration allows for some distance between the client company and the employee, it is important to ensure that the company’s values and culture are well communicated. Integration sessions, workshops and regular meetings can help build a sense of belonging.

Provide regular feedback:

The first few months are critical to the employer-employee relationship. Be sure to provide regular, constructive feedback to set the employee up for success.

With a successful integration, not only does the company benefit from a dedicated and productive employee, but it also strengthens its reputation as an employer of choice, making it easier to recruit in the future.

Portage combined with hiring the right talent: the winning strategy for success in China

Rich with opportunities and challenges, China is an expansion territory for many international companies. But if you really want to get a foothold and succeed, mastering recruitment is crucial. Portage Salarial is emerging as a winning strategy, not only to facilitate the recruitment process, but also to ensure the integration and retention of top talent.

With over two decades of experience, VVR International has positioned itself as an invaluable partner to European companies seeking to establish and thrive in China. By taking over critical tasks such as drafting employment contracts, managing human resources, payroll, administration and much more, VVR ensures that companies can focus on their core business.

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Portage vs setting up a business in China: The duel

Portage vs setting up a business in China: The duel

Once the Chinese market has been identified as a real opportunity, there are two main strategies for accelerating your business development in China: portage and setting up a local company. While China continues to be a popular destination for international expansion due to its vast and dynamic market, choosing the best approach to enter requires careful consideration. By simplifying the process, portage appears to be an attractive option for companies wishing to test the waters. On the other hand, setting up a local entity offers an unparalleled level of control and commitment. However, each option comes with its own set of advantages and disadvantages. This article will examine these two strategies in detail, weighing up the pros and cons, to help companies make an informed choice tailored to their needs and objectives in China.

Advantages of Portage services in China

Portage salarial is a solution that enables a company to hire an employee in China without having to set up a local legal entity. Here are the main advantages:

Administrative simplification

Avoid the complexities involved in setting up and managing a local entity. The freelance administration company handles all the administrative, tax and social security formalities for you, and can even physically house your employee in its premises in China.


Financial flexibility

With portage solution, no investment is required to set up your team in China. The only costs are the actual operating costs (salaries, travel expenses, etc.). Companies can therefore test the Chinese market with minimal investment and a limited commitment.

Absence of legal and regulatory risks

The portage company masters Chinese labour legislation and takes care of the employee’s legal obligations and administrative management, thereby reducing the risks for the foreign company.

Speed of implementation

Once the new employee has been selected, companies can start their activities in China almost immediately, without waiting for the long lead times involved in setting up a company.

Disadvantages of portage in China

While portage offers a simplified entry into the Chinese market, it also has its limitations:

Potential long-term costs

Although less expensive initially, portage can become costly over time, particularly if the company wants to increase the number of employees working in China. In this case, portage is a temporary solution until a local legal entity can be set up. VVR International supports companies from the recruitment of their first employee to the setting up of their own entity in China.

Dependence on a third party

Trust in a portage company imposes a dependence that can limit strategic autonomy. This is why it can be a transitional solution. This first stage can be part of a development project. If you are planning to set up a long-term presence in China, we recommend that you use a company offering a strategic diagnosis and a range of services to support your development and ensure the long-term future of your business.

Less control over operations

By delegating the administrative, tax and legal aspects, companies can feel a lack of direct control over their activities and their employees. This can be countered by implementing effective communication and monitoring tools that are accessible in both Europe and China.

Advantages of setting up a business in China

Opting to set up your own business in China is an ambitious move that offers a number of significant advantages:

Full control over operations and strategy

Having your own business gives you total control, enabling you to adjust strategy and operations in line with market needs and opportunities.

Potential for growth and expansion

With a solid structure, companies have the freedom to grow, invest and expand without limitations.

Recognition and credibility in the local market

A local presence, by opening stores or premises dedicated to its business or to the distribution of its products, strengthens the confidence of Chinese consumers and partners, facilitating business relationships.

Cultural and market adaptability

Proximity to the market allows us to understand consumers even better, and to adapt more finely to cultural and commercial specificities.

Disadvantages of setting up a business in China

Despite its advantages, setting up an entity in China is also fraught with pitfalls that should not be overlooked:

A long and complex process

setting up a business in China can be an obstacle course, with lengthy and sometimes opaque administrative, regulatory and legal procedures.

Legal and regulatory risks

China has a distinct legal and regulatory environment that can pose challenges for foreign companies. Failure to comply with regulations can result in severe penalties.

High initial costs

Unlike freelance administration, setting up a business requires a substantial initial investment, particularly in terms of capital, time and resources.

Cultural and linguistic barriers

Cultural differences can lead to misunderstandings and require constant adaptation.

Optimise your expansion in China with VVR International

The decision between portage and setting up a company in China is a crucial one, and largely depends on each company’s objectives, resources and long-term vision. While portage offers a quick and less risky entry into the Chinese market, a long-term vision with ambitions for solid expansion might lean towards setting up a company, despite its initial challenges.

However, this is not a choice to be made alone. With 23 years’ experience and more than 1,000 successful projects under its belt, VVR International is your trusted partner for securing and sustaining your business development in China.  VVR International carries out an initial diagnosis and works with you to devise a development strategy tailored to your business. VVR International then has the necessary licences and a dedicated HR team to recruit and support your employee in China or to help you set up an entity in China. Whatever your decision, VVR’s expertise will be a major asset in your conquest of the Chinese market.

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