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IMPACT – MEDIUM
What is the change? China has instituted a new biometrics requirement for visa applicants in the United Kingdom.
What does the change mean? Applicants ages 14 through 70 who are applying for Chinese visas in the U.K. will be required to provide fingerprints and a digital photograph as part of the application process.
Background: The biometrics requirement took effect this month. Similar requirements have been implemented recently in other parts of Europe, as summarized below:
Analysis & Comments: Visa applicants should factor in additional time to fulfil the biometrics appointment and the possibility of long queues during the first few weeks of this requirement.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? Shanghai has rolled out an electronic application process to streamline issuance of 144-hour transit visa exemptions.
What does the change mean? The process allows travelers to report their entry information online before traveling and use self-serve machines to print out their form and fill it out upon arrival.
Background: The transit visa exemption policy applies to nationals of 53 countries who present an onward departure ticket to a third country, allowing visa-free stays of up to 144 hours in the Shanghai, Zhejiang and Jiangsu regions.
Another automated service that launched Nov. 1 allows travelers who have reported their entry information in advance to scan their passport or a QR code upon arrival at a self-service form-filling kiosk, which prints out the traveler’s entry card, eliminating the need to manually fill out the form. These self-service form-filling machines are currently available at Pudong and Hongqiao International Airports in Shanghai and are expected to be expanded to all Shanghai ports of entry.
Analysis & Comments: The new services are aimed at streamlining immigration checks for travelers who are exempt from transit visas and reducing queues during the China International Import Expo in Shanghai Nov. 5-10. The online entry pre-declaration will also inform travelers if they do not qualify for the transit visa exemption, thereby reducing the risk of being turned away upon arrival.
What is the change? Offices in China will close Monday for the Mid-Autumn Festival and Oct. 1-7 for National Day.
What does the change mean? Employers and applicants should plan around the holiday closures and file all time-sensitive applications before the closures.
Background: The Mid-Autumn festival is a harvest celebration that falls on the full moon of the eighth month of the lunar calendar, Sept. 24 this year. Hong Kong, South Korea and Taiwan also observe the holiday, but closure dates may vary.
National Day, meanwhile, is celebrated Oct. 1 of every year in China to commemorate the founding of the People’s Republic of China. Offices will be closed Oct. 1-7 to mark this holiday.
Analysis & Comments: Employers should plan around the holidays and anticipate a backlog when offices reopen.
What is the change? The Beijing Entry-Exit Authority has announced a number of immigration measures aimed at attracting high-talent foreign workers to Beijing, and especially to the Zhongguancun Science Park (Z-Park).
What does the change mean? The measures provide a number of immigration and business travel incentives for Z-Park workers and their families.
Background: Z-Park is one of Beijing’s tech hubs and is known as China’s “Silicon Valley.” Authorities announced new incentives last week aimed at helping Z-Park businesses recruit high-level foreign talent. They include:
The new policies add to efforts by local authorities to simplify immigration policies for high-talent foreign workers. Similar simplified immigration policies are in place in the China (Shanghai) Pilot Free Trade Zone, the Zhangjiang National Innovation Demonstration Zone and the China (Guangdong) Pilot Free Trade Zone. It remains to be seen if the new measures introduced in Beijing and the Z-Park are extended to the other high-talent areas in Shanghai and Guangdong.
Analysis & Comments: Officials hope the measures will provide extra incentives for high-talent foreign nationals to work at a Z-Park registered company. Z-Park companies are encouraged to work with their Deloitte professional to determine what immigration and travel options are available for foreign workers and their families. Deloitte and BAL will continue to monitor incentive offerings in high-talent areas in China and inform clients if/when the incentives are also introduced in Shanghai and Guangdong.
IMPACT – HIGH
What is the change? Authorities in mainland China will soon begin issuing new residence permits to residents of Hong Kong, Macao and Taiwan.
What does the change mean? The permits will allow residents of Hong Kong, Macao and Taiwan to live, work and study in mainland China without having to obtain any other separate authorization. They will be valid for five years and will become available Sept. 1.
Background: The State Council announced on Aug. 3 that it would stop issuing work permits to residents of Hong Kong, Macao and Taiwan. Authorities subsequently stopped accepting work permit applications and issued new regulations on the issuance of residence permits for these residents beginning Sept. 1.
Residence permit applicants will be required to complete a form and provide provincial authorities documentation confirming their proof of residence, employment or schooling. Documentation establishing residence in mainland China may include housing lease contracts, property certificates or purchase contracts. Documents establishing employment may include business licenses, labor contracts or labor relations certificates, while students will be asked to provide proof of attendance such as a student ID card or other materials that can establish continuous schooling.
Residence permits, which will be valid for five years, will be available to residents of Hong Kong, Macao and Taiwan who intend to stay in mainland China for more than six months.
BAL Analysis: The process for obtaining the new residence permits is expected to be significantly easier than obtaining work or study permits. The issuance of residence permits will mean, among other things, that workers from Hong Kong, Macao and Taiwan will be fully protected under Chinese labor and contract law. Employers will likely see increased costs related to social insurance and housing fund contributions. Those with questions about how the new residence permit process will work should contact BAL.
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What is the change? The State Council recently indicated that China will soon waive work permit requirements for residents of Hong Kong, Macao and Taiwan.
What does the change mean? Individuals holding a Mainland Travel Permit for Taiwan Residents or a Mainland Travel Permit for Hong Kong and Macao Residents will soon be able to work in mainland China without obtaining work authorization. Some cities, including Shenzhen and Guangzhou, have stopped issuing work permits to these residents. Other cities, including Beijing and Shanghai, continue to require work permits pending further notice. The Ministry of Human Resources and Social Security is expected to issue a regulation by the end of the month lifting work permit requirements for residents of Hong Kong, Macao and Taiwan across the mainland.
Background: The State Council announced on Aug. 3 that it would stop issuing work permits to residents of Hong Kong, Macao and Taiwan, providing an indication that such individuals will no longer be required to obtain work authorization (like foreign nationals do) to work in mainland China. Even after this change takes effect, however, residents of Hong Kong, Macao and Taiwan will still be required to meet other entry criteria before they can legally enter and work in mainland China. Authorities may also set up a new registration process, though details on this are not yet known.
BAL Analysis: The waiver of work authorization requirements for residents of Hong Kong, Macao and Taiwan is a major change that will mean, among other things, that these workers would be fully protected under Chinese labor and labor contract law. And while it will generally be easier for employers to employ residents of Hong Kong, Macao and Taiwan, they may see increased costs related to social insurance and housing fund contributions. Employers will likely have the option of assigning such workers to third-party employers, whereas now they can only work for the company sponsoring their work permit. Additional details are expected in the coming weeks as Chinese authorities will move to implement this change. BAL will continue following developments and will provide updates as information becomes available.
This alert has been provided by the BAL Global Practice group in China. For additional information, please contact china@bal.com.
What is the change? Chinese immigration authorities have begun collecting fingerprints of all travelers aged 14 to 70 entering the country.
What does the change mean? Foreign nationals should be aware of the new requirement and plan to register their fingerprints electronically upon arrival.
BAL Analysis: To avoid entry delays, travelers should be sure to complete the fingerprint procedures upon arriving in China.
What is the change? A proposal has been submitted to the National People’s Congress to establish a new immigration bureau to manage immigration, border control, foreign residency, international migration agreements, entry and exit, and other matters concerning legal and illegal immigration.
What does the change mean? The bureau is intended to centralize immigration policy in light of the increasing number of foreign visitors and expatriate residents in China and is intended to promote policies to attract high-skilled foreign talent. The plan is expected to be approved this week.
The new bureau will be responsible for the following:
BAL Analysis: The introduction of a centralized immigration bureau signals that the central government will take a leading role in setting policy, specifically to target certain foreign skills that are in demand, although provincial authorities will likely implement their own individual procedures.
What is the change? Two months after central authorities issued guidelines easing immigration procedures for top international talent, the Shanghai Expert Bureau has confirmed that Foreign Talent (R) visas are now available to qualifying high-level foreign professionals seeking to live and work in Shanghai.
What does the change mean? The visas offer several benefits, including expedited work-permit processing and waiving of government processing fees. The visas are valid for five to 10 years for multiple entries of 180 days per visit. R visa holders may apply for work and residence permits directly with Shanghai authorities.
Background: Only those qualifying as high-level professionals – such as prestigious award recipients or nominees, renowned experts or scholars with outstanding talent, outstanding professionals within an organization, or others with special talents or possessing skills deemed to be in shortage in Shanghai – are eligible to apply. Applicants should obtain an approval letter from the Shanghai Expert Bureau before applying for the R visa at a Chinese embassy or consulate.
Applicants who want to work in Shanghai may convert in-country to a work permit and then a residence permit. Once the residence permit is issued, the R visa automatically becomes invalid. For applicants who plan to use a guarantee letter to support their application for an approval letter, the sponsoring Chinese entity must be on the Shanghai Expert Bureau’s list of companies deemed to be high-tech or otherwise qualified to use the guarantee letter. The guarantee letter must state that the applicant’s annual salary will exceed 600,000 renminbi (about US$95,000) and annual income tax will exceed 120,000 renminbi.
In January, three central authorities – the State Administration of Foreign Experts Affairs, the Ministry of Foreign Affairs and the Ministry of Public Security – issued joint guidance easing the procedures for R visas with the aim of attracting “top scientists, international enterprises and other talents with specific high-level skills that are in need in the development of the economy and society of China.”
BAL Analysis: The Foreign Talent visas offer significant flexibility and options for top-notch foreign talent in Shanghai. Other cities are expected to follow with their own procedures in coming months.
What is the change? Foreigners of Chinese origin are now able to apply for a new multiple-entry visa and residence permit that is valid for up to five years.
What does the change mean? The Chinese government has implemented a new residence permit specifically for foreign citizens with Chinese heritage. Applicants will need to prove Chinese heritage by submitting official documents issued either by the Chinese government or by the authorities in the country they are applying from.
Background: Before the new measure, foreigners with Chinese heritage could receive a one-year visa with a maximum residency of three years. Chinese officials were quoted in the media as saying they hope the new visa category will help foreigners of Chinese descent participate in China’s economic development.
BAL Analysis: The new visa will ease travel for foreign nationals of Chinese heritage seeking a residence permit in China, including employees who are already working in China. Travelers should note that work activities require work authorization. Countries with the largest number of overseas Chinese who may be eligible for the new residence permit option include Indonesia, Thailand, Malaysia, the United States and Singapore.