China: Expatriates will be able to apply for five-year Visas!

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SHANGHAI--China promised on Wednesday to relax its visa requirements to attract overseas workers under a wider liberalization plan after foreign investments fell to a record low last year.

The government outlined plans at a news conference that range from eliminating entry barriers to foreign investment in the manufacturing and financial sectors to issuing long-term work visas to expatriates and their families.

"In recent years, the global economic situation has become more complex, and the crossborder investment volatility has increased," said Wu Hao, an official at the National Development and Reform Commission.

Jia Tongbin, an immigration officer who joined Wu at the meeting, said expatriates who work for "well-known" companies or are involved in scientific research would be able to apply for five-year visas, rather than the current annual applications, once they had lived in the country for two consecutive years under the new rules.

Permanent residency will also be considered for those who are eligible, he added, without specifying any conditions.

Separately, business travelers with legitimate reasons to be in China could apply for five-year visas, rather than the current one-year, multiple-entry ones.

Following a record plunge in foreign direct investment (FDI) last year, officials revealed on Wednesday that promotional activities will be held in the U.S., Europe, Japan and the Middle East under the "Invest in China" banner. China's FDI totaled $33 billion on a net basis in 2023, according to the State Administration of Foreign Exchange, a drop of about 80% since 2022.

Officials also urged departments and local governments to "accelerate" efforts in drawing foreign capital, adding that Wednesday's action plans complement the 24 measures announced last year to boost growth following the lackluster economic recovery. The policy support revealed at the time included a slew of measures to promote private investment and encourage consumption.

Meanwhile, to bolster financial stability, China said it has strengthened communications with counterparts in the U.S. and Europe since last year. So far, the China-U.S. financial working group has held three meetings, while a similar meeting with E.U. members was convened on Tuesday, according to Zhou Yu, an official from the central bank.

"These meetings have strengthened communications between departments involved in macroeconomics, monetary policy and financial stability, so that we can have a better understanding of each other's policies," said Zhou.

Even so, foreign executives have bemoaned the mixed messages from Beijing. On the one hand, the government is promising greater liberalization but, on the other, it is strengthening national security laws. Foreign executives say these raise the risks of doing business.

In a report released on Wednesday, the European Chamber of Commerce in China said the "volume, complexity and severity of the risks that [member companies] face have all grown exponentially in recent years."

It added: "Politics has slowly seeped into the business environment, a trend that has been building up a head of steam since the global financial crisis."

Source: CK TAN, Nikkei staff writer; https://asia.nikkei.com/Economy/China-plans-to-ease-visa-rules-to-attract-foreign-talent-and-money

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