If your work permit and the new unified book replacement for the previous FEC and/or Alien Registration Work Permit are issued in City “A”, then you are required to work in that city. If your employer has several places of employment in City “A”, and if your employer has indicated to the PSB that you may be assigned to any or all of these places of employment, then indeed that is also valid. Your work permit is tied to the employer itself in his geographical location. For example, should you be working for the Bank of China in Shanghai, you may legally be assigned to any of the Bank of China branches in Shanghai, provided such has been witnessed on your contract of employment and on the application made to the PSB.
Next, should, for example, you wish to avoid the expense of living in Shanghai and you decide to live in Kunshan, or in Suzhou, or perhaps even in Hangzhou, this is also allowed provided that you and or your employer register your place of residence with the local police alien registration office. You will need to retain the white slip of paper as proof of registration. Your employer will need to complete this step for you because of the amount of papers the local police registration office will require of the employer.
That being said, if your work permit is valid for Shanghai, you cannot, without undue worry, seek employment in Hangzhou, Wuxi, Suzhou, Kunshan, etc. That is a guaranteed problem at the mildest, particularly with the prevailing current attitude in the PRC.
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