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LEGAL ASSISTANCE: Recent Changes on Entry and Exit Law in China
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n 1 July and 1 September of 2013, the PRC Entry and Exit Law and the Regulation on Administration of Entry and Exit of Foreign Nationals took effect respectively (“New Legislation”). By adopting these new legal provisions, China has revised and updated the rules in relation to the entry, residence and work of foreigners in China.

1 New Visa Policy

Under the New Legislation, the original 8 types of ordinary visa are modified into 12 types. Below is a brief comparison between the old ordinary visa types and the new ones:

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The most notable changes for foreigners are listed below:

· The old F visa is issued to foreign nationals for both commercial and non-commercial activities. However, under the new visa policy, the new F visa is for non-commercial activities only. If foreign nationals intend to conduct commercial and trading activities (non-employment) in China, the new M visa shall be applied.

· R visa is issued to foreign high-level talents. The introduction of R visa would provide more alternatives for senior expatriates to come and work in China.

Prior to the new R visa, most foreigners working in China under employment relationships with foreign or local employers have applied for Z visa, regardless whether they are high-level skilled or not. As per our understanding, the R visa could be part of China's talent strategy to attract more foreign talents, which might come up with relevant beneficial treatments, to the qualified expatriates, e.g. simple formalities for exit and entry and tax preferential treatments.

 

2 New Residence Policy

For certain foreigners who stay in China for a long-term period, after entering China with their valid visas, they also need to apply for the residence permits. In the past, there are only two types of residence permit: temporary residence permit and ordinary residence permit. Under the New Legislation, the residence permits are divided into five types:

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It is clearly stated that during the application of the residence permits, it will be necessary for the applicant to visit the police bureau and to provide their finger prints for record, in addition to the other supporting application documents.

 

3 New Working Policy

Under the New Legislation, the definition of illegal employment has been clarified. Illegal employment including: (i) working without work permit (or expert permit for qualified foreign experts) and corresponding residence permit, or (ii) working outside the location or scope of responsibilities stated on a work permit/residence permit. For the foreigners who study in China, they shall apply to the police bureau upon approval by the university/school before they can take any part-time job or internship in China. The police bureau will indicate on their residence permits the allowed location and duration for the part-time job or internship.

Illegal working might incur penalties to relevant foreigners and their employers, e.g. a fine up to 20,000 CNY for the foreigner and a fine of 10,000 CNY for the employer for each illegal employee. In the serious case, the foreigner can be subject to a detention up to 15 days in addition.
 

4 Exit Control

Under the New Legislation, it is clarified that under the following circumstances a foreigner may be disallowed to leave China:

a. Criminal with unperformed sentence, criminal defendant or suspect;

b. People with unsettled civil case, and the court has decided to disallow the departure;

c. People owes salary to employees, and the local government (provincial level or above) has decided to disallow the departure;

d. Other circumstances stipulated by laws and regulations.

Therefore, foreigners shall try not to be involved in any of the above circumstances in order to make sure that they can freely leave China at any time.

As a summary, the new legislations have made a lot of significant changes to the pervious Chinese legal system about the entry and exit of foreigners. It is important for every foreigner who intends to visit or who is living in China to get familiar with these new rules in order to prevent any legal problems for their trip or live in China. 
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