Relations between the state and labour NGOs in China have been particularly fraught. In 2012, they took an interesting turn when some local governments made overtures to labour NGOs to cooperate in providing services to migrant workers. This article argues that this shift is part of a broader strategy of “welfarist incorporation” to redraw the social contract between state and labour. There are two key elements to this strategy: first, a relaxation of the registration regulations for social organizations, and second, governmental purchasing of services from social organizations. These overtures have both a state and market logic to maintain social control and stabilize relations of production.