Navigating the legal landscape in China can be challenging, especially for expats unfamiliar with Chinese laws and terminology. This comprehensive legal glossary is designed to simplify key legal concepts and terms that foreign residents may encounter while living and working in China. Whether you’re dealing with employment contracts, visa applications, or business regulations, this glossary will provide you with clear definitions and explanations to help you better understand your rights and obligations.

1. Z Visa (工作签证): The Z Visa is the standard work visa for foreigners who are employed in China. It allows you to legally work in the country and is typically valid for 30 days, during which you must convert it into a residence permit. The Z Visa is required before you can apply for a work permit.
2. Work Permit (工作许可证): A document that authorizes foreign nationals to legally work in China. Your employer must sponsor and apply for your work permit on your behalf. There are different categories (A, B, C) based on your qualifications and job type.
3. Residence Permit (居留许可): After arriving in China on a Z Visa, you must apply for a residence permit within 30 days. The residence permit allows you to live and work in China for the duration of your employment, usually for one year, and is renewable.
4. Temporary Residence Registration (临时居住登记): A mandatory registration process that must be completed within 24 hours of arriving in China. Foreigners need to register their residence at the local police station or through their hotel. Proof of registration is required when applying for visas or residence permits.
5. Invitation Letter (邀请函): A formal letter from a Chinese employer or government authority inviting you to work or conduct business in China. This letter is required to apply for a Z Visa and confirms your purpose of stay.
6. Foreign Expert Certificate (外国专家证): A certificate issued to foreign professionals working in specialized fields such as education, technology, and research. It grants eligibility for work permits in certain high-demand industries.

1. Labor Contract Law (劳动合同法): The primary law regulating employment relationships in China. It covers areas such as employee rights, employer obligations, contracts, termination procedures, working conditions, and severance pay. Employers are required by law to provide a written employment contract.
2. Probation Period (试用期): A trial period at the start of employment, during which the employer assesses the employee’s suitability for the role. The maximum probation period for foreign workers is six months. During probation, your salary cannot be lower than 80% of your agreed wage.
3. Severance Pay (经济补偿金): Compensation that must be paid to employees upon termination of their employment in certain circumstances, such as layoffs, redundancy, or non-renewal of a fixed-term contract. Severance pay is typically calculated based on your years of service with the employer.
4. Overtime Pay (加班工资): Compensation for working beyond the standard legal working hours. In China, employees are entitled to 150% of their regular hourly wage for overtime on normal workdays, 200% for overtime on rest days, and 300% for overtime on public holidays.
5. Social Insurance (社会保险): A system that includes five mandatory insurances: pension, medical, unemployment, work-related injury, and maternity insurance. Both employers and employees are required to contribute to these funds, which provide benefits for healthcare, retirement, and other services.
6. Non-Compete Agreement (竞业限制协议): A clause in employment contracts that restricts employees from working for a competitor or starting a similar business for a set period after leaving their current job. The non-compete agreement must be reasonable in scope and duration, and the employer is required to compensate the employee during the restricted period.

1. Guanxi (关系): A key concept in Chinese business culture, guanxi refers to the network of relationships and personal connections that play a crucial role in business and professional success. Building and maintaining strong guanxi is essential for securing business deals, resolving disputes, and gaining opportunities in China.
2. Representative Office (代表处): A common structure for foreign companies operating in China, a representative office (RO) is a non-trading entity that acts as a liaison between the parent company and its Chinese partners. ROs cannot engage in profit-making activities but can conduct market research, promote products, and coordinate activities.
3. Wholly Foreign-Owned Enterprise (WFOE) (外商独资企业): A company fully owned and controlled by foreign investors, allowing them to conduct business in China without the need for a local partner. WFOEs are a popular choice for foreign businesses wanting full control over operations, decision-making, and profits.
4. Joint Venture (合资企业): A business entity created through a partnership between a foreign company and a Chinese company. Joint ventures are used to combine resources, share risks, and take advantage of local market knowledge. Ownership, management, and profit distribution are typically split between the partners.
5. Business License (营业执照): The official document issued by the Chinese government that grants a company the legal authority to operate in China. It includes details such as the company’s name, registered capital, and scope of business. All businesses in China, including foreign-owned ones, must obtain a business license.

• Individual Income Tax (IIT) (个人所得税): A tax levied on individuals’ income in China, including wages, salaries, bonuses, and other forms of remuneration. IIT is based on a progressive tax scale, with rates ranging from 3% to 45%, depending on your monthly income. Expats are taxed based on their residency status.
• Tax Residency (税务居民): A foreigner who resides in China for 183 days or more in a calendar year is considered a tax resident and is subject to Chinese Individual Income Tax on their worldwide income. Non-residents are only taxed on income sourced within China.
• Double Taxation Agreements (DTAs) (双重征税协定): Agreements between China and other countries to prevent foreign workers from being taxed twice on the same income. These treaties allow expats to claim tax credits or exemptions in their home country for taxes paid in China.
• Taxable Income (应税收入): Income that is subject to taxation, which includes wages, salaries, bonuses, investment income, and rental income. Certain deductions, such as housing and education allowances, can reduce your taxable income under specific conditions.
• Social Security Agreement (社保协议): An agreement between China and certain countries that allows expats to avoid paying into China’s social insurance system if they are already contributing to a similar system in their home country. Countries like Germany and South Korea have signed such agreements with China.

1. Intellectual Property (IP) (知识产权): Refers to creations of the mind, such as inventions, literary works, and designs, that are legally protected from unauthorized use by others. In China, IP rights are enforced through patents, trademarks, copyrights, and trade secrets.
2. Patent (专利): A legal right granted to an inventor that allows them to exclude others from making, using, or selling their invention for a certain period, usually 20 years. In China, patents are granted for new inventions, utility models, and designs.
3. Trademark (商标): A recognizable sign, design, or expression that distinguishes goods or services of one entity from those of others. Trademarks in China must be registered with the China National Intellectual Property Administration (CNIPA) to be legally protected.
4. Copyright (版权): Legal protection for original works of authorship, including literary, artistic, and musical works. Copyright in China covers both Chinese nationals and foreign creators under international treaties such as the Berne Convention.
5. Trade Secrets (商业秘密): Confidential business information that provides a company with a competitive advantage. In China, unauthorized disclosure or use of trade secrets is prohibited, and legal action can be taken to prevent or seek compensation for breaches.
6. Counterfeit Goods (假冒商品): Fake products that infringe on registered trademarks or patents. China has strict laws against the production and sale of counterfeit goods, and companies can take legal action against offenders through administrative or civil channels.

• Contract (合同): A legally binding agreement between two or more parties outlining rights and obligations. In China, contracts must be in writing and can be oral if specified by law. Common types of contracts include employment, rental, and service contracts.
• Force Majeure (不可抗力): A clause in contracts that exempts parties from liability if they are unable to fulfill their obligations due to extraordinary events beyond their control, such as natural disasters, war, or government actions. In China, force majeure clauses are often included in commercial contracts.
• Breach of Contract (违约): The failure to perform any term of a contract without a legitimate legal excuse. Breach of contract can result in legal consequences such as damages, specific performance, or contract termination under Chinese law.
• Termination Clause (终止条款): A provision in a contract that outlines the circumstances under which the contract can be legally ended by one or both parties. In China, contracts often specify termination procedures, including notice periods and severance payments.
• Liquidated Damages (违约金): A pre-determined sum of money specified in a contract, payable by the breaching party to the non-breaching party in the event of a violation of the agreement. This is commonly used in Chinese contracts to ensure compliance.
• Arbitration Clause (仲裁条款): A clause in a contract that requires disputes to be resolved through arbitration rather than in court. In China, arbitration is a common method of resolving commercial disputes, particularly those involving foreign parties.

• Marriage Certificate (结婚证): The legal document proving that two individuals are married. In China, marriages between foreigners and Chinese nationals must be registered with local civil affairs authorities. A marriage certificate is required for various legal matters, including visas and property ownership.
• Divorce (离婚): The legal dissolution of a marriage. Divorce in China can be obtained through mutual consent or litigation. Property division, child custody, and spousal support are key issues addressed during divorce proceedings.
• Child Custody (抚养权): The legal responsibility for the care and upbringing of a child. In divorce cases, Chinese courts prioritize the child’s best interests when determining custody, often granting custody to one parent and visitation rights to the other.
• Prenuptial Agreement (婚前协议): A legal contract entered into by a couple before marriage, outlining the division of assets and financial responsibilities in the event of divorce. Prenuptial agreements are recognized under Chinese law if they comply with contract law principles.
• Adoption (收养): The legal process of establishing a parent-child relationship between individuals who are not biologically related. Foreigners adopting a child in China must comply with both Chinese adoption laws and the laws of their home country.
• Inheritance Law (继承法): Governs the transfer of property and assets upon a person’s death. Foreigners in China can inherit property under Chinese law, and estate division follows the legal hierarchy outlined in the Inheritance Law.

1. Litigation (诉讼): The process of resolving disputes through the court system. In China, litigation can be used for civil, criminal, and administrative disputes. Foreigners have the right to file lawsuits in Chinese courts, and judgments can be appealed.
2. Mediation (调解): A voluntary process where a neutral third party helps disputing parties reach a mutually acceptable resolution. Mediation is commonly used in China for labor, family, and commercial disputes and is often preferred for its speed and cost-effectiveness.
3. Arbitration (仲裁): A method of dispute resolution where an impartial arbitrator hears the evidence and makes a binding decision. Arbitration is commonly used in commercial disputes involving foreign parties, and China has several arbitration commissions, including the China International Economic and Trade Arbitration Commission (CIETAC).
4. Small Claims Court (小额诉讼): A simplified legal process for resolving minor civil disputes involving small amounts of money. In China, small claims courts handle cases related to consumer disputes, contract breaches, and property damage.
5. Administrative Litigation (行政诉讼): Legal action taken against government agencies or officials for violating rights or exceeding their legal authority. Foreigners in China can file administrative lawsuits to challenge unfair government decisions, such as visa denials or improper tax penalties.
6. Civil Judgment Enforcement (民事判决执行): The process of enforcing a court’s decision after winning a lawsuit. In China, civil judgment enforcement may involve seizing property, garnishing wages, or other measures to ensure compliance with the court’s ruling.

• Lease Agreement (租赁协议): A contract between a landlord and tenant outlining the terms of renting a property. Lease agreements in China typically cover rent, deposit amounts, and the responsibilities of both parties. Both foreign and local tenants must comply with the terms of their lease.
• Property Ownership (房产所有权): The legal right to possess, use, and control real estate. Foreigners in China can own property under certain conditions, such as being married to a Chinese national or having worked in China for a specified number of years.
• Title Deed (产权证): The official document proving ownership of property. In China, title deeds are issued by local land bureaus and are required for buying, selling, or transferring property.
• Mortgage (按揭): A loan used to purchase property, with the property itself serving as collateral. Foreigners in China can obtain mortgages, but there are restrictions based on residency status and income requirements.
• Real Estate Agent (房产中介): A licensed professional who helps buyers, sellers, landlords, and tenants with property transactions. It’s advisable for expats to use real estate agents who specialize in working with foreigners to navigate the legal and procedural aspects of property transactions in China.

These additional sections for the Legal Glossaries expand your knowledge of intellectual property, contract law, family law, dispute resolution, and property law in China. Understanding these key legal terms helps expats make informed decisions and ensures compliance with Chinese regulations. For personalized legal advice or assistance with specific legal matters, our law firm is available to provide expert support tailored to your situation.