The informal economy is significant in developing countries for several reasons, ranging from providing jobs to transitioning into the formal economy. The case of China is no different. Despite being the world's second-largest economy, China remains a developing country. While workers in the informal sector suffer from several constraints, including a lack of job guarantees, random layoffs, to seasonal employment, women workers suffer more in the informal sector. China has made several strides in ensuring that women constitute a major part of the labour force, and the efforts for the inclusion of women post the establishment of the People's Republic of China go back to Mao Zedong's slogan of ‘women hold up half the sky.’ Despite the strides, women in China, particularly in the informal sector, continue to suffer from several constraints, which include wage differentials, unsafe environments, higher workloads in cases, and so on. A major challenge to measuring Chinese women's contributions to the informal economy lies in the fact that there is no formal definition of the informal economy in China. Given China's economic slowdown and aging population, the top leadership of the country has urged Chinese women to focus primarily on their reproductive functions. This chapter tries to outline the hurdles women workers face, particularly in the informal sector. It uses primary and secondary data sources, not just from Chinese sources but also from international organizations. The chapter investigates, through findings of empirical studies, the gendered implications of informal employment in China. It follows an inductive line of reasoning to outline the plausible implications for the Chinese economy if the trend of hurdles for women workers in the informal sector is to continue. This paper investigates, through the findings of empirical studies, the nature of work and employment conditions for those who work in the community services sector and the gender implications for those engaged in informal employment.