China is vast, and when entering the Chinese market, Swiss companies must decide where to establish their presence in China. Criteria for this decision are proximity to business partners and customers, ecosystem of the specific industry, availability of talents, local subsidies and tax incentives, employee and rental costs, and how fast and easily the location is accessible internationally and locally.

For a brand owner of consumer and luxury goods that wants to sell its products to the growing Chinese middle class, it makes sense to establish in or close to one of the economic free zones in or close to the first-tier cities Shanghai, Beijing and Shenzhen.

There are two main legal company forms in China available for foreign investors: the limited liability company (LLC) and the company limited by shares. In practice, for most foreign investors the LLC is the appropriate company form.

Most foreign-invested companies do not require a special approval, anymore, before they may be established. Since a few years, China has applied the principle that, unless the business in which the company wants to operate in is on the so-called "negative list", no specific foreign-investment approval is required.

The "the negative list" is updated once per year, and is gradually reducing the barriers for the market entries of foreign investors through green field investments. Refer to the negative list 2020 here.

The following process is based on the assumption that the LLC is an LLC with foreign investors and that the intended business activity of the LLC does not fall under the scope of the Negative List of the People’s Republic of China (refer to Question 3).

The registration of foreign investment enterprises shall be handled pursuant to the law, by the market regulatory authority of the State Council or the market regulatory authorities of local People's Governments empowered thereby. A LLC with foreign investors shall therefore go through registration with the Administration for Market Regulation (the “AMR”). The registration steps are as follows.

1. LLC Name Pre-Registration

Generally, the first step for the establishment of a LLC is the name pre-registration with the local AMR. The foreign investor (“FI”) needs to submit to the local AMR an application form with proposed names of the LLC. The AMR will review such an application and issue to the FI a letter confirming the name of the FI, if no similar enterprise names exist in the same location, which is active in the same or a similar industry. In certain locations, this step can be executed online.

2. Registration with AMR

Generally, the second step for the establishment of a LLC is the Registration with the local AMR. The FI shall submit to the local AMR all the required materials, whereas the documents required to be submitted may vary from location to location.

If the submitted documents are complete and correct, no further special documents or information are required by the local AMR and the local AMR will issue the Business License of the LLC. The LLC is legally established on the date, on which the Business License is issued. With the Business License, the LLC can initiate post-establishment registrations.

3. Other Potential Certificates or Procedures

Depending on the specific business scope of the intended LLC with FI, further approvals and/or registrations before or after a LLC’s establishment (issuance of business license) might be required. As an example, a LLC intending to engage in financial business needs to obtain a financial license issued by the China Banking Regulatory Commission before its establishment.

4. Post-Establishment Registrations and Procedures

After the LLC has completed its registration with AMR and obtained its Business License, the LLC shall also undertake various post-establishment registrations and procedures with relevant authorities. Such registrations and procedures are generally required to be completed within thirty (30) days of the establishment date. Such registrations and procedures include for example the following:

a)        Public Security Registration and Obtaining a Company Seal (Chop), Financial Chop and Legal Representative Chop

The LLC shall file its corporate seals with the local public security bureau (“PSB”). The LLC shall apply for carving a company seal, which is commonly referred to as a “chop”, a financial chop as well as a legal representative chop. These chops are a prerequisite in order to open bank accounts and to complete other formalities thereafter.

b)       Foreign Exchange Registration

Since the State Administration of Foreign Exchange has transferred its examination and approval competence of the foreign exchange registration to the banks, the LLC shall register the Foreign Exchange Registration with its account opening bank.

c)        Opening Bank Accounts

The LLC shall apply to open a foreign exchange capital account and a separate RMB basic deposit account with a bank inside China. In practice, this step and the step in the above paragraph (b) for Foreign Exchange Registration is usually initiated at the same time. The applications must be submitted to the relevant bank to open the LLC’s relevant bank accounts. Whereas the process of opening a bank account has been straightforward and could usually be executed within a few days until only a few years ago, this process has become rather time consuming and troublesome in the past few years.

d)       Tax Report

The LLC shall, within 30 days from the date the Business License is received, report its registration to the taxation authorities and conduct relevant formalities.

e)        Social Security Registration

The LLC shall present their business license, registration certificate or organization seal within 30 days from the date of incorporation to apply for completion of social security registration with the local social security agency. The social security agency shall examine the application and issue a social security registration certificate.

f)         Expatriate Formalities

The LLC shall go through a variety of steps with the PSB and Customs Authorities in order to complete relevant registration and visa formalities for the LLC expatriate personnel (if any) who will work in China.

The corporate SCS is a comprehensive plan to monitor and guide enterprises in China with the usage of technology. Any enterprise that is registered in the PR China (excl. Hong Kong, Macao and Taiwan) is affected by the corporate SCS. Enterprises may obtain negative or positive ratings and face either sanctions or preferential treatment, depending on their scores.

Generally, companies established and registered in China (LLC) have the following annual filing obligations:

1. Financial statements filing

Companies established and registered in China are required to file the annual financial statements (no audit required) to the local Administration for Industry and Commerce through the online filing system within 6 months after the end of each calendar year.

2. Tax filings

There are mainly the following three types of taxes to be filed with the Chinese tax authorities:

1)   Corporate Income Tax (CIT)

Tax resident enterprises (TREs) are subject to corporate income tax (CIT) on their worldwide income. For the sake of completeness, it shall be noted that a non-TRE that has no establishment or place in China is taxed only on its China-source income. A non-TRE with an establishment or place in China shall pay CIT on income derived by such establishment or place from sources in China as well as income derived from outside China that effectively is connected with such establishment or place.

Under the CIT law, the standard tax rate is 25%.

The tax year commences on 1 January and ends on 31 December. Enterprises are required to file and pay provisional income taxes on a monthly or quarterly basis within 15 days following the end of each month/quarter, and file and settle their annual income tax return within five months after the end of the tax year through the online filing system. Information on related-party transactions must be filed with the annual income tax return.

2)   Value-Added Tax (VAT) and VAT surcharges

VAT is generally filed and paid on a monthly basis through the online filing system. The VAT surcharges, which include urban construction tax, education surcharges, and local education surcharges are calculated based on the paid VAT and are filed with the VAT declaration.

3)   Individual Income Tax (IIT)

Companies established and registered in China are required to withhold and file the IIT of their employees on a monthly basis within 15 days after the end of each month through the online filing system.

Provided by PwC

Cyber security and data protection have become very important in China over the recent years. In particular foreign invested companies that are processing personal data, operating critical infrastructure or providing products or services to critical infrastructure operators must make themselves familiar with the applicable laws and regulations.

The transfer of data overseas (either to a third-party contract or an overseas affiliate) is subject to restrictions, and require as the case may be prior internal or external security assessment and approval of the authorities (likely the Cyberspace Administration).

We recommend that you seek for competent legal advice in this regard.

Companies doing business in China are more susceptible to certain risks including fraudulent reporting, misappropriation of assets and lack of management integrity. ‘Guanxi’ or ‘relationships’, are of particular importance in China; relationships with government bodies, investors, partners, and even with staff.  The importance of the establishment and maintenance of ‘guanxi’ in China increases the opportunity that corrupt practices will arise in the course of regular business affairs.

Since 2013 the government has led a sustained anti-corruption campaign, seeking to root out vested interests and strengthen the Chinese authorities’ power, paving the way for future reforms.

Even though the situation has improved considerably in the recent years, corruption (including facilitation payments) is still a problem, and you should apply a "zero tolerance"-policy and make sure that your employees comply with such policy by educating and training them.

Getting familiar with corporate governance law in China is important for each foreign investor.

Following page gives a good overview of standards regarding board composition, management rules, director’s duties and liabilities, internal controls and much more.

In China, agreements are concluded with the use of so-called company chops. They are mandatory to have in order to do business (refer to Question 4). Beyond the official company chop, a firm will likely need several chops – each for a different purpose and used on different types of official documentation – depending on its business scope.

Following page will provide a comprehensive overview of all different types of chops a company is required to possess.

Almost one in three yuan is spent by Chinese consumers on online purchases. The two large platform operators Alibaba and Jingdong (JD) dominate the Chinese e-commerce market. Together they control approximately 75% of the Chinese e-commerce market through the platforms of Tmall, Tmall Global, Kaola, JD.com, and JD Worldwide. However, many other platforms such as Pinduoduo, VIPShop, Little Red Book (Xiaohongshu), and WeChat shops are catching up. These new players offer more options for online sales, which makes the Chinese e-commerce market even more complex for foreign brands.

In the past, many foreign companies decided to distribute their products directly via the cross-border e-commerce (CBEC) platforms Tmall Global, Kaola or JD Worldwide in order to test the Chinese market and increase awareness of their products.

These CBEC platforms offer Chinese consumers the advantage of being able to buy the products directly from the foreign producers or authorized foreign dealers, which gives them a higher security that the products are not fake and in good condition. For the foreign producers, distribution via these CBEC platforms has the advantage that they do not have to open a subsidiary in China to directly distribute their products in China.

However, sales through CBEC platforms are associated with high costs that many foreign brands have underestimated. Brand owners are dependent on cooperation with various partners. Chinese customers expect fast delivery of purchased products. Hence, the products must be stored in a Chinese free trade zone, from where another local delivery partner manages the last mile delivery. If sales volumes are low, these costs can account for a large proportion of the costs. The operation of a flagship store on a CBEC platform incurs further costs from the CBEC platform and the local operation partner.

Swiss consumer brand owners must decide whether selling via a CBEC platform makes sense to them or, if they should consider marketing their products through a local distributor on local e-commerce platforms and to local retailers.

In the latter case, the big challenge is to find the right distribution partner(s). The markets have become very competitive and the distribution partners have specialized, even within a product group. For instance, a distributor of coffee products may not have the experience and network that is required for the successful distribution of dairy products. The Swiss consumer brand should be prepared to invest sufficient time in selecting a distributor.

The Swiss supplier would typically enter into a written distribution agreement with the local distributor who will then sell the products on local e-commerce platforms and to local retailers in its own name and on its own account. A well thought out distribution agreement makes a significant contribution to success.

A good distribution agreement governs inter alia the distributor's duties regarding the brand image, business development, marketing and promoting, sales targets, and reporting. It also governs the terms and conditions of the individual purchase contracts between the Swiss supplier and the distributor. The Swiss company must also make sure that the distributor is responsible for customs clearance and regulatory compliance.

A major advantage of collaborating with a local distributor is that the Swiss company does not have to bother with the extensive rules and procedures of the local e-commerce platforms that typically impose major liability and indemnification obligations on the merchants. Nonetheless, the Swiss supplier must make sure that its liability towards the distributor is limited, in particular for damages claims by the distributor for consumer or e-commerce platform claims.

The CCC certification is based on the China Compulsory Certificate. This certification, issued by the responsible government agency in China, is necessary to be able to trade specific Chinese and foreign products on the Chinese markets. The CCC product catalog contains a list of products that need the CCC certification such as IT, telecommunications or medical devices.



Since 2016, China is the second largest food and beverage importer worldwide after the USA. To ensure that the imported food products respect the quality and safety standards, China has a multi-level food regulatory system. However, due to the non-conformity and/or the irregularity of the quality, China must send back or destroy large amounts of food. In order to avoid wasting this food, it is important for the producing or exporting companies to stay updated about the latest regulations to ensure the conformity of their products. It is also strongly recommended to work with trustful partners.

The main rules to follow are listed below:

1. Law of the hygiene of food
2. Law for inspection of import and export products
3. Regulations for importers and exporters of imported food?

For more details on this procedure, click here.

A Swiss exporter is normally confronted with certain risks i.e. political risk and/or the credit risk of the buyer. Any such risks can be mitigated through a Private Risk Insurer (PRI) or a state-owned Export Credit Agency (ECA). However, there are certain key criteria to be eligible for a specific risk coverage accordingly. Besides export risks it is also possible to mitigate supplier risks, the cover of goods and services, pre-and post-shipment risks etc.

The Swiss Export Credit Agency (SERV) is an institution under the public law that is owned by the Swiss Confederation. It has the aim to help Swiss exporters to compete internationally and create as well as maintain jobs in Switzerland.

Often bids for mid to large projects in China or related Belt and Road infrastructure projects, even outside China, it is a competitive advantage for a Swiss exporter to provide in the early bidding phase a financing solution (buyers credit), if it is not a bidding criteria already. Thus, with a credit risk insurance from SERV or a Private Risk Insurer it is possible to transfer the credit risk to an institution with a better rating than the buyer is himself. Hence a cheaper and customized financing through a 3rd party financial institution (i.e. banks) can be provided accordingly.

Provided by Denis Ecknauer, Advisory Board Member SCCC

On July 6, 2013 China and Switzerland signed the Sino-Swiss Free Trade Agreement ("Sino-Swiss FTA") which entered into force on July 1, 2014. After the Free Trade Agreement with Hong Kong (in force since October 1, 2012), the Sino-Swiss FTA is the second answer to the increasing importance of bilateral trade between the two countries in the past few years.

Switzerland has, with respect to goods listed in Switzerland's specific preference schedule and originating in Mainland China (imports from Hong Kong being governed by the EFTA - Hong Kong free trade agreement), since the entry into force of the Sino-Swiss FTA:

- abolished almost all remaining tariffs applied to industrial and other non-agricultural/farming/fishing products, including textiles and footwear; and

- reduced or abolished the tariffs applied to numerous agricultural/farming/fishing products.

The advantages of the Sino-Swiss FTA may be combined with those of Switzerland's free trade and mutual recognition agreements with the EU and EFTA and, as the case may be, with any of Switzerland's other 27 free trade agreements with 38 other partners, using Switzerland as its "Gateway" to all these countries. However, "Gateway" does not mean that a Chinese company may use Switzerland effortlessly as a transit or passage for its goods destined for the EU, or any other country with which Switzerland has an FTA, profiting from zero tariffs.

How easy or difficult this would be depends on the rules of origin (ROO) in the Swiss FTA with the relevant destination country and should be studied specifically by a legal expert specialising in international trade. Generally, such ROO require a minimal value added created within Switzerland. Chinese companies could export parts and semi-finished products meeting the ROO of the Sino-Swiss FTA to Switzerland at reduced or zero tariff, and process or work on them in Switzerland, or alternatively assemble them with Swiss components in Switzerland to a sufficient extent to meet the ROO requirements for Swiss origin in the Swiss FTA with the final export destination country or countries. The product would then be deemed Swiss made, with all the positive images connotations and effects that carries, and enjoy the preferential tariffs of the relevant FTA when exported to the final export destination country or countries.

China has a famous negative reputation in copying and counterfeiting brands and products. Foreign companies increasingly want to make China one of their major market, as more than 30 % of the valid registrations were from foreign companies according to the WIPO (World Intellectual Property Organisation) in the first half of 2019. The China National Intellectual Property Administration (CNIPA), renamed in 2018 State Intellectual Property Office (SIPO), published recently the fourth amendment of the Chinese Trademark Law that entered into force on the 1st of November 2019.

Companies producing and/or selling in China are strongly recommended to obtain a trademark registration in order to avoid third parties to obtain the rights before; the "first-to-file" system counts. That means that the first who registers the trademark is considered as the lawful owner, so it’s important to apply for the trademark protection as quickly as possible. There are only three situations where the trademark can be revoked: if the registration was made in bad faith; if there is a similar well-known brand and there could be a misleading for the customers; or if the trademark hasn’t been used for three years since the registration.

For the registration, there are two ways:

1. the international registration system, and

2. the national registration system.

Thanks to the Madrid Agreement and the Madrid Protocol, and the corresponding Regulations for Common Execution of these two treaties (the Regulations), within one application, the trademark can be protected in nearly 100 countries including members of the EU, a majority of Eastern European countries, the USA, Russia, China, Japan, Switzerland, Australia and many more.

These agreements were signed to simplify the administrative effort for the extension of the trademark protection in other countries. This system is administered by the (WIPO) in Geneva.

As Hong Kong, Macao and Taiwan have a different legal system, they are not included under the Chinese trademark. For these regions, a separate application to obtain the trademark protection is needed.

It is highly recommended to protect the trademark in Chinese characters, as well, as most Chinese remember only the Chinese name of a foreign brand.

Often companies use transliteration, which means that they either translate the name of the brand or search a near phonetic Chinese word with a positive meaning.

The 3 different types of patents, invention, utility and design patents, are granted by the SIPO (State Intellectual Property Office).

The invention patent, valid for 20 years from registration date, is used for technology innovations. After this period of time, the patented invention belongs to the public domain.

The utility model patent, valid for 10 years, is granted for new technical solutions relating to the shape and/or structure of an object. In general, the degree of invention required for a utility model patent is lower than for invention patents.

The design patent, also valid for 10 years, is granted for original designs relating to the shape, pattern, colour or a combination of an object.

Keep in mind that foreign patented inventions are not automatically protected in China. Protection is only secured if the patent is also granted in China.

It is essential to take practical measures to counter internal and external threats, so as to protect your trade secrets. Such measures include but are not limited to the following: Firstly, it is advisable to have controlled access to your working premises, to your computers and IT systems, and to your documents, soft or hard copies. Secondly, protective measures towards employees are essential. For example, a written employment contract with provisions to protect trade secrets, internal trade secrets policies and awareness trainings, lawful surveillance of employee activities could be applied. Thirdly, when faced with (potential) business partners, it is also beneficial to do your due diligence and conclude contracts of relevance with provisions to protect trade secrets.

In case that your legitimate trade secrets are violated, the following remedial measures could be considered based on the specific situations: apply for arbitration according to the existing arbitration agreement, apply for labor arbitration if the infringement is from employees, file a complaint to administrative departments of industry and commerce, file a civil lawsuit, or initiate criminal proceedings. There are legal regulations in China on protection of trade secrets.

It is worth mentioning that the 2019 amendments to the Anti-Unfair Competition Law of China have focused on and enhanced protection of trade secrets:

- The definition of "trade secrets" is expanded from "technical or operational information" to "technical, operational or other commercial information". Therefore, the protection is not limited to "technical and operational information".

- Infringing acts are expanded to include electronic intrusion, violation of confidentiality obligation (in addition to requirements from the obligee), and instigating, tempting or aiding others.

- The responsible parties for infringement are expanded to include "other natural persons, legal persons and unincorporated organizations", other than the business operators. 

- The amount for compensation and fines has increased to maximum RMB 5,000,000 (used to be RMB 3,000,000); punitive damages of 1 to 5 times of the actual loss of the infringed or the benefits obtained by the infringer are introduced.

- In civil trails, burden of proof on the alleged infringer is increased. If preliminary proof is provided by the obligee, burden of proof is shifted to the alleged infringer to prove that the claimed trade secrets do not fall with the scope provided by the law, or there is no infringement.

Provided by VISCHER law and tax, Yao Qinqin

Chinese financial institutions and other big Chinese companies have been competing more aggressively with foreign businesses for senior business executives. The competitive talent market is putting upward pressure on salaries of executives and managers. Companies that wish to succeed in the Chinese market should carefully evaluate recruiting and hiring strategies or partner with a locally connected, executive search partner with a European exposure as announcements and postings of senior executive appointments are relatively uncommon in China.

Firstly, it is very important to update the understanding of the Chinese talent structure. Generation Y and Z are quite different from Generation X regarding life style and career motivation.  Furthermore, as China is huge in size, there can be observed diverse behaviors in different tier-level cities.

Secondly, a mid to long term talent development strategy is highly appreciated by candidates. Along with the employer’s strength of brand, corporate culture, market positioning strategy, also leadership style are key considerations these days.

Thirdly, the first impression counts most: whether it is at the first phone call by the recruitment agency or at the very first interview with an employer. Be serious in the communication, be respectful to each other, be transparent in sharing information. From our experience, if the interview process is done professionally, the chances of hiring best suitable candidates is much higher. To build up trust between company and candidate is fundamental.

Last but not least, it might be wise not to hire a permanent person right away. This is particularly the case where question marks come up at the local unit level regarding internal compliance issues which every company is facing sooner or later. A permanent hire would typically refrain from uncovering and resolving them but adopt them automatically in order to keep his/her work life easy. Only an interim manager will uncover and resolve hidden issues. Due to his/her unbiased view and experience for cleaning up special situations, an interim manager will restore transparency and implement tools and processes within a few months. After this clean-up and preparation-for-the-future, the time is right for hiring a permanent successor. This approach might look costly, but it is proven to be the most feasible solution in the mid- to long term for an operating subsidiary company in China.

Provided by BRAINFORCE, Martin Schneider; Owner and Ms. Frances Yao, General Manager Shanghai

In order to work in China, any foreigner needs to obtain a work and residence permit. Please be aware that there is an age restriction for applying a work permit which is 18 to 60 years for males and 18 to 55 years for females. A government-issued Work Permit allows a foreigner to work in China for a company specified and job position stated on the Work Permit application. This permit is issued in China and application involve both online and offline submission of documents for approval. Prior to entering China and applying for a Work and Residence Permit, foreigners need to be in possession of a valid visa. (It must not necessarily be a working visa/Z Visa)

The application for the Residence Permit follows the obtaining of a Work Permit. A Residence Permit, issued in China and valid for a year, allows to reside in China and to exit and enter the country with no restrictions.

Within 15 calendar days of a foreign individual signing a contract, the sponsoring company should proceed with the application for the individual’s Work Permit. Usually the procedure takes two weeks.

Application for a Residence Permit should take place within 30 calendar days upon the issuance of an individual’s Work Permit. Customarily, the Residence Permit is approved and issued within 10 working days upon receipt of the application.

It is important to denote that Work Permits cannot be transferred to another company upon termination of a contract. It is required that the Work Permit be terminated prior to applying for a new Work Permit under a new company. In this process, the company is required to issue a release letter and shall cancel both the Work Permit and Residence Permit within 10 working days upon the letter.

As there are certain aspects that need to be considered before engaging in these processes, it is advisable to seek consulting from experts.

Provided by BRAINFORCE, Martin Schneider; Owner and Ms. Frances Yao, General Manager Shanghai

In the past decades, the incomparable economic development of China led among other to an increasing overall education level. This means that the rural-urban gap is still growing as educated people go to the cities.[1] However China’s labor force was one of the most important factors which brought China to this development, as labor force was cheap. But this situation is now changing with the slowdown of the economic growth and the increasing foreign companies which want to implement in China.[2]

China’s employment regulatory framework can be described as quite complex, especially for companies which want to build a full local office. Thereby the best way to avoid many procedural costs and the language-related problems is to find a locally sourced payroll provider who knows the Chinese laws for both Chinese companies and employees as well as foreign companies and employees.

In China, workers must have an employment contract which is up to local standards. Companies must be able to draw up employment contracts which are also in agreement with the local standards.

The Chinese Labor law takes in the rules and regulations governing employment related to employment and is effective in all sectors and every kind of companies such as individual economic organizations, private non-profit entities and governmental companies. Employment relationships between government offices, institutions and social groups and their employees are also governed by Chinese labor law. China requires both from employees and companies a mutual written commitment. If there is no written commitment from both parties, the employment relationship can still be claimed to exist as if both parties are bound by such a contract.[3]

The use of a written work manual is an important asset for a fruitful and fluid collaboration between the employer and the employee. The employer is obliged to specify the written procedures which guide the conduct of the employees, and the employee must follow these procedures but is also protected by them. Often the employment handbook includes a code of conduct, an ethical conduct policy. For the companies, it gives them more flexibility when it comes to human resources, because an employee disrespectful of the guidelines can be dismissed. The employment handbook is also a protection for both parties in a legal process, if one of the two party has been fraudulent.[4]

[1] https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_423613.pdf

[2] https://www.statista.com/topics/1317/employment-in-china/

[3] https://knowledge.leglobal.org/wp-content/uploads/sites/2/LEGlobal-Employment-Law-Overview_China_2019-2020.pdf

[4] https://www.ipopang.com/blog/employee-handbooks-in-china-why-you-should-have-one/

The Chinese social security law is decreed by the government, but its implementation and its specific details are the responsibility of local authorities. Employee and employer contribution base and rates are specific to each local jurisdiction and are subject to annual changes and reforms. The contribution of employees and companies are mandatory no matter if they are Chinese or foreign.

The Chinese social security system is based on 5 mandatory insurances (pension fund, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance) and a housing fund (only applicable to Chinese employees).

Pension: to receive a pension in China 15 years of contributions are mandatory in general. The retirement ages for men and women depends on the sectors (blue-collar work -> 1st and 2nd sector, white-collar work -> 3rd sector). Usually blue-collar workers retire before the white-collar workers.

Medical Insurance: If an employee is ill or needs an operation, he can have a part of the medical costs covered by the medical insurance. The treatments costs will only be accepted if they take place in, or are managed by, hospitals and clinics approved by the Chinese government.

Unemployment Insurance: An employee must contribute to the unemployment insurance fund for at least 1 year so that in case he become unemployed, he has the right to receive the contributions for no longer than 2 years.

Work-related injury Insurance: This insurance covers the accidents directly related to work and only employers need to contribute.

Maternity Insurance: this insurance is only supported by the employers for the female workers (in some cases for the male workers too). In order to benefit from this insurance, the employer of the female worker must pay at least 3 months to this fund and the medical services have to match with the Chinese Family Planning Policy.

[1] https://www.hrone.com/guide-chinas-social-security-system-pays/