The Dream Factory of China

Starting Aug. 1, Shenzhen will introduce 16 favorable exit-entry rules for expats working in the Qianhai and Shekou area of the Guangdong Pilot Free Trade Zone (FTZ) to encourage high-level foreign experts, as well as innovative foreign talents and overseas Chinese to start businesses in the city.

The Qianhai and Shekou area of the Guangdong Pilot FTZ includes the Qianhai area and part of the Shekou area that borders the Qianhai area.

The rules, which have been approved by the Ministry of Public Security, were made to support the construction and innovation-based development of the Guangdong Pilot FTZ, and are expected to help the city establish a market-oriented system of professionals, which evaluates in line with international practice.

The Shenzhen Daily will open a special column starting today to elaborate in detail on the 16 rules for expats, enterprises and the general public.

Rule 1:

High-level foreign experts working in the Guangdong Pilot FTZ’s Qianhai and Shekou area in Shenzhen are eligible to apply for permanent residence permits in China for their spouses and underage children with a recommendation from the FTZ’s administration office.

The Guangdong Provincial Public Security Department promises to complete a review of qualification for applicants within 50 days and submit the applications to the Ministry of Public Security for approval, which will be completed within 40 days.

The provincial authorities are authorized to set evaluation standards, which will be enacted after approved by the Ministry of Public Security.

Convenience and breakthrough: 1) This is a new channel for expats to apply for permanent residence permits in China.

According to existing rules, foreigners who make major, outstanding contributions to China’s social and economic development, with their spouses and underage children, can apply for permanent residence permits in China with recommendations from related government agencies.

2) The new rule shortens the time limit for approval from 180 days to 90 days.

Rule 2:

Foreign members of innovation teams, who are settled in the FTZ, and foreign technicians who were hired by enterprises in the FTZ, can accumulate points toward qualifying for a permanent residence permit in China.

Convenience and breakthrough: A new points-based channel for permanent residence permits for high-level foreign experts. It is expected to attract higher caliber foreigners to work and start businesses in the FTZ.

Rule 3:

Foreigners who invest in the Guangdong FTZ directly, or through companies of which they are controlling shareholders, accumulate US$1 million or above in three years, and have good taxation records, are eligible to apply for permanent residence permits in China.

Convenience and breakthrough: 1) The existing rule requires foreign investors to invest directly as natural persons. The new rule allows foreign investors to invest through companies of which they are controlling shareholders.

2. The rule lowers the direct foreign investment threshold in the FTZ from Guangdong’s previous US$2 million.

Rule 4:

Those with doctorate degrees, or who have worked in the Guangdong FTZ for four consecutive years, and have lived in China for at least six months each year, can directly apply for permanent residence permits.

Convenience and breakthrough: The rule further lifts requirements for overseas Chinese who apply for permanent residence permits in China.

1) The rule cancels restrictions on the type of company or position title. The previous rule required applicants to have worked as deputy managers or higher level executives at four types of enterprises, or to have had the professional titles of vice professors or vice researchers at top universities or seven types of research institutes.

2) The rule expands time limit for staying in China.

The previous rule required applicants to have worked for at least four years, and to have stayed in China for at least an accumulative three years. The new rule requires that applicants have worked for at least four years, and have lived in China for at least six months of every year.

Rule 5:

An overseas Chinese person who starts a business in the Guangdong FTZ (not subject to the age limit of 60) can either apply for a five-year residence permit with a work certificate and a letter of guarantee from the employer, or apply for a five-year residence permit for personal affairs with a business plan. The residence permit will be endorsed “business startup.”

Convenience and breakthroughs: 1) New rule cancels age limit for applying for residence permit.

2) It simplifies application procedures, and lifts validation period of residence permit. The applicants are not required to produce an employment permit for foreigners or a foreign expert certificate.

3) Applicants can apply for residence permit with business plan.

Rule 6:

Foreign students who are invited by Guangdong FTZ enterprises can apply for short-term personal affairs visas at checkpoints (endorsed “intern”). Inbound students with other types of visas can also apply for short-term personal affairs visas (endorsed with intern) at the exit-entry administration department.

Convenience and breakthroughs: 1) Existing rule doesn’t allow foreign students at overseas higher learning institutions to work as interns in China. The new rule supports exchanges between Guangdong FTZ and foreign students at overseas higher learning institutions.

2) The rule provides visa convenience to foreign students studying at overseas higher learning institutions.

Rule 12:

A Chinese person with foreign citizenship can apply for a multi-entry visa, valid for five years, if they are born in Guangdong or had once registered as a permanent resident in Guangdong, as long as they have relevant documents confirming family visits, business trips, cultural exchanges or personal affairs in China.

Convenience and breakthroughs: The rule expands the time limit of multi-entry permits from one year to five years for a Chinese person with foreign citizenship if they were born in Guangdong or had registered as a permanent resident in Guangdong. The time limit for their residence permits are extended from three years to five years.

Rule 13:

An international student who graduates from a university in China (including Hong Kong and Macao) can apply for a two-year personal affairs residence permit (endorsed: “start a business”) by providing their diploma. They can take an internship or start a business in Guangdong, and they can apply for a work residence permit if they are hired by a company in the Guangdong FTZ.

Convenience and breakthroughs: The rule provides convenience for international students who want to start a business in Guangdong. The previous rule required an international student to leave China after graduation before they could apply for a work visa in China.

(To be continued)