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Work Permit Requirements Relaxed in Shanghai

March 4, 2021

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At a Glance

  • The Chinese government introduced relaxed eligibility requirements and other beneficial rules for Work Permit applications for Shanghai, focusing on foreign nationals in scientific and technological occupations; foreign nationals in innovative entrepreneurial occupations; and special experts.
  • The changes are in line with Chinese government’s goal to attract more highly-skilled foreign nationals, especially in scientific and innovative fields.
  • Separately, the Chinese government has announced that it will increase enforcement measures for Work Permit applications part of the Employer Trust Program.

The situation

On March 1, 2021, the Expert Bureau in Shanghai issued a Notice relaxing the Work Permit requirements for foreign nationals in scientific and technological occupations; foreign innovative entrepreneurial occupations; and special experts.               

A closer look

CATEGORY/CHANGE  DETAILS  IMPACT 

Foreign nationals with scientific and technological occupations

  • Relaxed eligibility requirements for recognized project employees. For foreign nationals with scientific and technological occupations working in projects in Shanghai recognized by the municipal government, the Expert Bureau has relaxed the age limit, the two years’ work experience requirement and degree requirements (the determination of these are at the discretion of the authorities). Usually, this program was limited to applicants under 60 years old with at least two years’ work experience and a bachelor’s degree. If approved, the Work Permit may be valid for an initial period of two years, up from the previous initial validity of one year.
  • New qualification criteria under Category B and C Work Permits. Employers of scientific and technological category applicants who are not eligible to apply for Category A Work Permits (for example, they do not meet internationally recognized standards, or are not middle upper management, among other requirements) can still apply for the Category B or C Work Permit for their employee by providing a Commitment to waive the clean criminal record requirement during the application.
  • Unsponsored part-time jobs and entrepreneurs. Foreign nationals with scientific or technological occupations who hold any Work Permit can obtain a part-time job with another employer and can start a business in Shanghai, after obtaining pre-approval and submitting supporting documentation to the immigration authority.
  • Longer R Visa validity. Foreign nationals in scientific and technological occupations can apply for the R Visa (a work permit with a longer validity and a more streamlined application process) that is valid for 10 years. Previously, the initial R Visa validity was five years. 

Due to the relaxed eligibility requirements and new qualification criteria for Category A Work Permits, there will be a bigger pool of foreign nationals with scientific and technological occupations available for hire by employers in Shanghai.
 

Moreover, eligible foreign nationals will benefit from greater flexibility with the ability to hold a part-time job or apply for a long-term R Visa.

Foreign nationals with innovative entrepreneurial occupations

  • Relaxed eligibility requirements. The Expert Bureau relaxed the age limit, work experience requirements and degree requirements for foreign nationals with innovative entrepreneurial occupations who are investors seeking to apply for initial work authorization. The exact new requirements are at the discretion of the authorities. Previously, these applicants had to be below 60 years old, have at least two years’ work experience and a bachelor’s degree.

Foreign nationals with innovative entrepreneurial occupations who invest in Shanghai will benefit from an easier entry path. 

Special foreign experts

  • Expanded eligibility requirements. The Expert Bureau has relaxed the age limit, work experience requirements and degree requirements for foreign special experts who are otherwise not eligible for the Category A Work Permit (for example, they do meet internationally recognized standards, or are not middle-upper management, among other requirements) who are under 70 years old and meet one of the following requirements:
    • hold a general foreign vocational qualification;
    • perform a skill that is urgently needed in Shanghai; or
    • hold other international vocational qualifications.

Employers of special foreign experts who meet the expanded eligibility requirements will benefit from a bigger pool of applicants. 

Increased enforcement in Employer Trust Program

The immigration authorities are increasing their supervision and verification measures for Work Permit applications for the Employer Trust Program. Under this program, applicants can submit a Commitment Letter in lieu of standard requirements such as legalized documents, tax documents, among others that are required for Work Permit applications. 

Employers and employees part of the Employer Trust Program should ensure the authenticity of the documents they submit for the program, and should cooperate with authorities during verification processes, since enforcement has increased in the program.

 

Background

  • A race to become the technological innovation center of the world. The changes are in line with Chinese government’s goal to attract more highly-skilled foreign nationals (especially foreign nationals with scientific and technological occupations) and establish Shanghai as a technological innovation center with global influence. Other countries in the region have introduced policies with a similar goal, such as the new Tech.Pass in Singapore, and the Technology Employment Visa in Hong Kong SAR.
  • Relaxation of immigration policies continue. In the past years, China has been continuously relaxing immigration requirements by expanding visa eligibility and introducing efficiencies in the application process, such as the introduction and continuous updating of online facilities, with the goal of streamlining the business immigration environment in China.

 

Looking ahead

It is likely that the Chinese government will continue to introduce policies that will provide companies more flexibility in selecting, evaluating and employing foreign nationals by relaxing Work Permit requirements for high-level foreign national applicants.

Further, the Chinese government will also likely move more immigration application assessments to a more trust-based system, where companies can submit certifications on behalf of the applicant and where applications will be considered in light of the company’s good standing with the government.

Fragomen in China is Fragomen (Shanghai) Co. Ltd., operating exclusively as an immigration consultancy and not as a law firm in China. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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