It is common for foreign companies operating in China to engage staff through staffing agencies, instead of entering into employment contracts with staff in the name of the company (the arrangement is mandatory for entities operating through representative offices of foreign companies, as they may not employ staff directly).

This arrangement is commonly referred to in China as labour dispatch and involves the staffing agency employing staff in its name and then "dispatching" them to work for a company. (For details, see Practice note, Use of agency workers: China.)