China Eases Immigration Rules to Attract Overseas Talent
July 25, 2019 | BY
Marilyn RomeroIn July, China introduced more relaxed immigration rules in a bid to attract highly-skilled overseas workers to combat the country's severe shortage of talent.
China's quest to become a global powerhouse in technology and other highly skilled industries has been hitting a roadblock due to a severe local talent shortage. LinkedIn statistics, for example, show that China trails the U.S. in terms of technology professionals working in the artificial intelligence, or AI, sector. As of March, the U.S. had 850,000 AI workers while China had just over 50,000; ranking it seventh, behind India, the U.K. and Canada. About nine out of 10 AI positions advertised on the mainland go unfilled, forcing companies to venture out of China to hire, according to LinkedIn.
Furthermore, as the Trump administration pressures American firms to desist doing business with Chinese companies, China is seeking to cut its reliance on U.S. suppliers by further boosting its domestic manufacturing capabilities, especially in the technology sector. This requires assembling quickly a large pool of diverse and highly skilled talent that can only be drawn from overseas.
To help address these problems, in July, China's Ministry of Public Security announced a new set of immigration rules that make it easier for highly skilled overseas talent to come to China to work; and to encourage overseas entrepreneurs to start businesses in the country. Under the new rules, those with in-demand skills and those whose annual income or taxes exceed a specified threshold can apply for permanent residency, as can their spouses and underage children.
Before the new immigration law was relaxed, China only allowed foreigners who made “major and extraordinary contributions” while in China, or who filled a particular skills gap, to apply for permanent residency. Now those that have been in the country for longer than four years, and have earned income and paid tax over certain levels will be open to apply.
Foreign nationals who come to China to study or for business or employment, can now apply for a long-term visa that lasts between two and five years. Previously, moving to China for work or study was more complicated, with both an employment visa and a residence permit often required, and issued for shorter periods.
The new rules supplement the “Thousand Talents Plan,” a high-profile, state-backed recruitment drive launched in 2008 to attract overseas Chinese students and academics—particularly those in the science and technology fields—back to China with the lure of cash grants to fund their research and living costs. However, this has provide insufficient in meeting demand, and now the Chinese government considers the easing of immigration laws to be a vital part of its efforts to attract more talent. Employing overseas expertise will be essential for the many high-skilled, technological sectors that are central for the country to develop if its long term 2025 strategic vision to modernise and upgrade its economy is to be achieved.
Last year, in preparation for the eased immigration law, China established a new immigration bureau to help streamline the process of approving highly-skilled foreign workers coming into the country. Managed by the Ministry of Public Security, the new immigration bureau is responsible for overseeing visas, repatriation of people found to be in the country illegally, and border controls. It also will provide exit and entry services for Chinese nationals. According to the State Immigration Administration, more than 133,000 visas and permanent residency permits have been issued to foreign entrepreneurs, investors, and technology and business executives since 2015. The country is now hoping to substantially boost that number.
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