Im holding a X type in China right now. It will expire in July, I want to apply for a working visa.

Alina, you need to find an employer who is qualified for recruiting foreigners. Then your employer needs to assit you to apply for the work permit. Usually, the applicant is required to provide his diploma and working experiences for applying the work permit. After getting your work permit, you may visit local entry and exit management bureau to ask whether you can apply for the Z type without leaving mainland China. If they say No, then you need get back to Chinese embassy in your country to apply for the Z type.