China To Introduce New ‘Green Card’ System To Attract Foreign Talent

by Mary Swire, Tax-News.com, Hong Kong

26 August 2004

The Chinese government has approved new rules that will allow foreigners to apply for permanent residency in the country, according to a report in the state media.

Under the new system, some foreigners living or working in China will not have to apply for visas when leaving and entering the country, as the government will allow foreigners holding senior positions to apply for residency permits in China.

An unnamed official from the Ministry of Public Security told the Xinhuanet news agency that the regulations are intended to apply to high-level foreign professionals, big investors and foreigners seeking to reunite with family.

Once the new system is fully operative, foreigners who qualify for the scheme will be eligible to apply for a ‘green card’ or long-term residency permit ranging from one to five years, the official revealed.

In addition, returning Chinese residents who have already lived in China for at least six months will be eligible to apply.

Significantly, the possession of a green card will entitle holders to tax breaks and other perks previously unavailable to foreigners.

The ministry official noted that the move is aimed at meeting China's demand for foreign expertise as the economy continues its rapid rates of growth.

According to 2001 statistics more than 60,000 registered foreigners worked in the country, although in reality the actual number is thought to be far higher.

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