There are several situations where we see foreign companies looking to use an employer of record in China. These include: Companies needing local staff to handle on the ground operations, client meetings or supplier management. But the workload or company strategy does not lend itself to the setup of a representative office or a WFOE. Those new to the China market who wish to hire local staff to carry out early market research or exploration. Companies with an overseas based contractor that they want to base in China Companies which intend to open a China presence (Rep office or WFOE often) but want to hire staff in the interim period whilst this is setup.