Facts On Employment In China

As of 2019, about one million foreigners are working in China. Working in China offers multiple opportunities to expand one’s career, learn Mandarin and gain valuable cross-cultural skills.

Many foreigners experience difficulties and uncertainties in navigating the work visa application process.

Here are some practical tips for those looking to work in China.

In China, the Work Visa (commonly referred to as the Z Visa), Work Permit, and Residence Permit are three separate items with different functions and formalities for their acquisition.

Holding a Work Visa allows a foreign national to enter China with a stated purpose – legitimate employment. A Chinese Embassy or Consulate issues work visas overseas. However, since March 2017, the Foreign Affairs Office in China no longer issues the required government invitation letter for Z visa.

Rather, foreigners may now enter China under other visa categories, such as a tourist or business visa. After entering China they can apply for a Work Permit and Residence Permit. However, don’t forget that a Work Permit and Residence Permit must be obtained before any foreigner commencing work in China.

Work Permit

A government-issued Work Permit allows a foreigner to work in China for a company specified and job position stated on the Work Permit application. The Work Permit is issued in China. One can make an application through the service system for foreigners working in China and submit documents both online and offline for approval. Therefore, China encourages the use of the online submission and approval process before entering China (since it allows for ample time to collect the required documents and any other documents further requested at the discretion of Chinese authorities). Once a foreigner gets online approval, he/she can enter China and submit the original Work Permit documents.

Residence Permit

The Residence Permit allows one to live in China. For those holding a valid Residence Permit, there are no restrictions placed on exiting and entering China. Customarily, the Residence Permit issued inside China is valid for up to one year. The Work Permit is the precondition of the Residence Permit. Therefore, the application of the Residence Permit follows a Work Permit.

First-time application

Within 15 calendar days of a foreign individual signing a labor contract, the sponsoring company should proceed with the application for the individual’s Work Permit. Customarily, the timeline for online approval of a Work Permit is five working days upon the receipt of the requisite online documents. The offline approval takes 10 working days upon receipt of the original documents.

Application for a Residence Permit should take place within 30 calendar days upon issuing an individual’s Work Permit. Customarily, the Residence Permit is approved and issued within 10 working days upon receipt of the application.

Alteration

Any changes in the original information submitted in one’s application for a Work Permit or Residence Permit must be updated. This includes updates for a change of address, passport, and so forth. Authorities will consider failure to update such changes a violation and you may be subject to penalties.

Termination

You can’t transfer an existing Work Permit to a new sponsoring company. Since the Work Permit allows a foreign individual to be employed only by the original sponsoring company in the position specified in the Work Permit application, it is required that the originally issued Work Permit be ended before applying for a new Work Permit under a new sponsoring company. In this process, the original company is required to issue a release letter and to cancel both the Work Permit and the Residence Permit within 10 working days of the letter.

Keep in mind

A China Residence Permit is approved and issued on the prerequisite of the Work Permit applied under the original sponsoring company. Therefore, both the Work Permit and Residence Permit shall be canceled concurrently. Upon termination of the Work Permit, failure to cancel the original Residence Permit deems its holder as staying in China illegally, making them subject to fines of RMB 500 per day and at risk of deportation.

Once both permits are canceled, authorities will issue a Humanitarian Visa. Under the Humanitarian Visa, one may remain in China for up to 30 calendar days upon receipt of the visa. A new sponsoring employer can complete the formalities for a new Work Permit and Residence Permit for a foreign individual.

It is important to note that the procedures and requirements for all China work permits are different and they depend on the location of employment and on the local authorities. For example, work permits in a Special Economic Zone carry less stringent criteria to attract foreign talent, whilst first-tier cities may establish stricter criteria to give preference to local workers. Therefore, navigating work-in-China procedures should be advised by a legitimate professional who understands the local procedures and regulations.