Abstract: This article is dedicated to motivation of employees of the private economic sector of China. The author examines the practices of employee stimulation via salary, as well as practice of stimulating productivity through bonus program. It is noted that the system of employee motivation via salary in the private economic sector of PRC does not significantly differ from the practices implemented in the public sector or other market economies. Chinese private companies almost entirely integrated the market tools for stimulation of workforce productivity, patterned after the examples of capitalist countries. The majority of private sector enterprises are characterized with fringe benefits to basic salary, when the size of remuneration directly depends on hitting the individual and collective planned targets. The salary is being regularly indexed depending on conjuncture of the job market, productivity of the company and employees. In addition to the main salary, the base of the salary consists of payment for the volume of completed work, bonuses, various incentives and compensations. Raises for continued employment play the smallest role in size of the salary. A substantial part of the fringe benefits is actually taken by the Chinese companies out of the salary budget for the purpose of minimizing the tax burden for the company.