7/31/2019 China Enacts New Exit-Entry Administrative Law; Targets Illegal Entry, Stay and Employment of Expatriates

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China Enacts New Exit-Entry Administrative Law; Targets Illegal Entry, Stay and Employment of Expatriates

(Sunnyvale, CA)- China has formally enacted a new Exit-Entry Administration law that imposes strictercontrol over the entry, residence and work for expatriates in China. The new law that takes effect on

July 1, 2013 also governs the exit-entry administration of Chinese nationals but has put a strongemphasis on foreigners working in China and foreign invested enterprises hiring foreign employees inChina.

Exit-Entry Administration of Expatriate Employees in China: Key Highlights

Collection of biometric data: For the first time, requirements have been imposed on expatriateemployees and visitors to provide biometric data as part of the application process for residencepermits in China.

Expatriate employees in China are required to provide their fingerprints an d their “other biometricdata” – which can possibly include retinal scans, or behavioral biometric data, such as voice orhandwriting samples to the Public Security Bureau (PSB).

Tourists, business travelers, students may also be asked to provide their biometric data. The Ministry of Public Security or the Ministry of Foreign Affairs may enact additional laws in this

area with regard to the collection of data.

China Expatriate Entry and Exit limitations

Foreigners who are believed to possibly engage in activities contradictory to the category of their entryvisa will be denied entry visas for China. Also, provisions allow issuing authorities significant

discretionary powers to put certain persons on visa blacklists. Expatriate’s unfulfilled employee paymentobligations may be subject to a no-departure restraining order in China until such issues are resolved.

China Expatriate Residence Permit Term Decreased

Residence permits issued in conjunction with the employment of an expatriate will now be valid for aminimum of 90 days, which was previously 180 days, and a maximum of 5 years.

For every renewal, expatriates need to seek fresh approval. With the shortened tenure of permits, thecost of expatriates’ legal stay in China is expected to rise.

China Expatriate Employment: Industry and occupation classifications

China will create a guidance list mentioning industries or sectors with needs and thus permission of foreign employment. The guidance will be updated from time to time. The new regulation is expected tocurb rising illegal employment of foreigners in mainly the language education and entertainmentsectors.

7/31/2019 China Enacts New Exit-Entry Administrative Law; Targets Illegal Entry, Stay and Employment of Expatriates

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China Visa Category: New Additions

China expands the scope for the foreigners who may be eligible for entry visas. In addition to visas issuesfor work, study, family visits, travel or business, foreign nationals endowed with certain specific skill canalso be issued “talent” visas. It is not clear yet t he type of qualifications required for this category of visa

and the relevant approval and issuance procedures.

China Work Visa Documentation: Ensuring Authenticity

Chinese government has now shifted the onus to the employers to ensure authenticity and validity of the invitation letters and other documents they issue to foreign workers to obtain work visas. Non-compliance of these provisions attracts harsher sanctions on the employer.

China Expatriates: Empowered Public Security Bureau

China’s Public Securi ty Bureau or the entry-exit administration offices have been given absoluteauthority:

to question on site or at a PSB office foreigners suspected of illegal access, stay or employment to detain those foreign suspects for up to 30 days in normal scenario and the detention can be

extended to 60 days for complex cases, and confine activities or movements of the foreigners to certain districts for up to 60 days.

China Expatriates: New Reporting requirements for employers and schools

Employers and schools are required to report information to local PSB on any expatriate employmentand any foreign student enrollment. General public are required to report any alleged infringements.

Infringement Penalties

Following are the penalties for violating the revised rules:

Foreigners staying illegally in China will have to pay a penalty of up to RMB 10,000 or may besubject to imprisonment of 5-15 days.

Expatriates illegally working in China will have to pay a fine of RMB 5,000 to RMB 20,000; incomplex cases, they may also be subject to imprisonment of 5-15 days.

For Employers

Employers will be subject to a fine of RMB10, 000 for every illegal employment up to an aggregateof RMB100, 000 and disgorgement of monetary gains from the illegal employment.

Employers who illegally provide invitation letters or other visa application documents will besubject to fines of RMB5, 000 to RMB10, 000 (for employers that are individuals) or RMB10, 000 to

7/31/2019 China Enacts New Exit-Entry Administrative Law; Targets Illegal Entry, Stay and Employment of Expatriates

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RMB50, 000 (for employers that are entities), disgorgement of illegal gains and responsibility forany deportation expenses.

Deportation

Foreigners violating Chinese laws and regulations are considered unsuitable to reside in China andare required to leave the country voluntarily within a given period of time.

Non-compliance with the departure deadline may attract a re-entry ban of 1-5 years and theforeigner may be subject to deportation. For foreigners committing serious infringements, theMinistry of Public Security may deport and even ban them from re-entering China for a period of 10years.

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