Overseas businesses, individuals and foreign agencies in China are not allowed to directly recruit laborers in China, China's commerce and market watchdogs have said in a regulation.

Chinese businesses that hope to recruit Chinese laborers for work overseas must get approval from the Ministry of Commerce (MOC).

They must meet the standards set by the regulation and obtain relevant license before carrying out such business, according to the regulation, jointly released by the MOC and the State Administration for Industry and Commerce (SAIC).

The Chinese businesses are required to have a stable business, debt rate less than 50 percent and positive performance record, the regulation said. They must have a sound management system with strong financial background and have won the authentication of the ISO9000 quality management system.

Chinese businesses that qualify for contracting projects abroad can directly send laborers overseas for the project if needed, according to the regulation.

Authorities in charge of industry and commerce at all levels across the country have been ordered to investigate and prosecute those unlicensed or unregistered businesses that conduct labor employment business for overseas firms, the regulation said.