A
new provisional regulation which will allow foreign human resources (HR) agencies to
enter the Chinese personnel market via joint ventures (JVs) was unveiled in Beijing. The
regulation will take effect on November 1.
The
Provisional Regulations on Management of Sino-Foreign Joint Venture Human Resource
Agencies allow foreign firms engaged in HR business for over three years to establish
mainland-based JVs with Chinese partners.
The JVs must have a
minimum US$300,000 of registered capital. The foreign partner must contribute at least
25% and the Chinese partner at least 51%.
This is the first opening of the Chinese
HR market.