At present, China is one of the leading economies in the world. Employers of China develop their production, skills, and also give great attention to developing the skills of their employees. However, to date, in a competitive environment, many companies are faced with the problem of leaving valuable employees who have crucial skills, customer connections and confidential information about the company's business. In order to protect competitive environment, Chinese lawmakers have introduced into the labor law of China a concept of the non-competing environment agreement, which is concluded by the employee and employer at the moment of entering into the employment contract and have effect after termination of the employment contract. The article analyzes the non-competition agreement as an institution of labor law in China, the conditions for its application, as well as its scope, discusses the issues of legal regulation of the non-competition agreement in China, assesses the main regulatory acts of the PRC aimed at regulating the non-competition agreement in China.