Foreign companies intending to hire workers and operate in China without registering a legal entity may be put on a blacklist that is being set up by the Chinese government. This could also apply to companies that have set up an entity in one location but have personnel operating in another location in China. The Measure for Investigating and Punishing Unlicensed Business Operations, which went into effect in October 2017, replaces existing regulations that prohibit operating business without an official license. A few exceptions apply, such as participating in a flea market, doing odd jobs as a handyman or other activities expressly permitted under local regulations. The blacklist will be published, and may even attract attention of other government authorities, such as tax and labor authorities.
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