Relaxation of Permanent Residence Rules in Shanghai
October 19, 2015
By: Jenny Du
In China, Permanent Residence (PR), also known as the “Green Card”, allows foreigners to work and live in China on a long-term basis, initially for ten years with renewals allowed thereafter. Under the traditional framework, PR rules were limited to the following broad categories of eligibility:
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Investment;
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Senior executives employed by selected employers;
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Distinguished talent with significant contribution to China; and
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Family reunion.
Previously, only a very limited number of foreigners nationwide could meet such eligibility requirements and consequently few were granted the Green Card. This was especially so for working employees, since the government relied highly on applicants’ job titles and sponsoring company types.
However, on 1 July 2015, the Public Security Bureau published a new application category for foreigners working and living in Shanghai which eased the requirements for potential applicants. Under this new category, qualified applicants with accompanying dependents (spouse and unmarried children under 18 years) can now apply for the Chinese PR simultaneously with the main applicant.
Eligibility requirements
To be eligible under this category, applicants must prove that:
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They have worked and maintained legal status in Shanghai by holding work permits and residence permits for a minimum of four years;
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During those four years, they must have met the specific requirements for annual income, tax payments, and annual residency in China; and
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They are being recommended by their current employer in Shanghai.
Applicants would also need to maintain other eligibility requirements, such as lack of a criminal record and clean health reports, while the application is underway. Certified high-level foreign talents, after working in Shanghai continuously for three years, are also eligible to apply.
Key benefits for PR holders
PR holders in China are exempt from entry visas, as well as work authorization requirements such as work permits and residence permits. They can work and live anywhere in the country during the validity of their Permanent Residence card. Also, their employers would no longer need to renew or amend their work authorization documents and can move them to any city in China without any immigration limitation.
With these benefits, the Shanghai Permanent Residence application is expected to be very popular for eligible foreign nationals. It is anticipated that applications for Permanent Residence will increase as foreign employees and high-level talents already working in Shanghai who were previously ineligible to apply for Chinese PR will use the city as the launch pad for work elsewhere in China. Likewise, Shanghai will become a more attractive destination for foreigners not yet living in China but who wish to gain Chinese PR.
What this means for employers
The newly issued policy is shaping Shanghai into a more attractive city for foreigners to live and work. Companies can expect more requests from eligible employees in Shanghai for recommendations to apply for the Chinese PR.
Employers need to be fully aware of the impact of newly issued immigration policies in Shanghai, especially the Permanent Residence rules. Even with the relaxation of the PR eligibility, employers still need to properly maintain compliance around the renewal of work permits and residence permits when their PR application is underway.
