On January 25, 2024, China’s Ministry of Commerce (MOFCOM) released the latest version of the Guidelines for Foreign Businessmen to Live and Work in China. This updated document is a crucial resource for foreigners planning to reside and conduct business in China, offering essential insights into various aspects of daily life, legal obligations, and business operations.

Key Areas of Focus in the Guidelines

The guidelines are structured into four main sections:

1. Things to Pay Attention To

2. Daily Living Services

3. Services for Stay and Living in China

4. Social Services

Each section provides detailed instructions to help foreign businesspersons navigate their stay in China, from initial arrival procedures to long-term residency and tax obligations.

Essential Considerations for Foreign Businesspersons

1. Temporary Accommodation Registration

  Upon arrival, those staying in a hotel can register using a valid passport or international travel documents. If staying in other accommodations, registration must be done at the local police station within 24 hours in urban areas or 72 hours in rural areas.

2. Visa and Residence Permit

  If planning to work or reside in China, convert your visa to a residence permit within 30 days of entry. Apply for visa extensions 7 days before expiration, and report any changes to your passport or residence documents within 10 days.

3. Work Permits

  Adhere to the stay period specified on your Z-visa. If your stay exceeds 90 days, apply for a “Foreigner’s Work Permit” within 30 days of entry.

4. Emergencies and Legal Compliance

  Follow Chinese laws and regulations, including those related to social media and pet ownership. For emergencies, dial 110 for personal safety, 119 for fires, and 120 for medical assistance.

Daily Living Services in China

Navigating daily life in China involves understanding several key services:

1. Mobile Number/SIM Card

  To obtain a SIM card, visit service centers of major telecom providers with your passport. Choose from various service packages to meet your needs.

2. Banking and Mobile Payments

  Open a bank account by presenting your passport, work permit, and domestic mobile number. Link your bank card to mobile payment apps like WeChat or Alipay for convenient transactions.

3. Foreign Currency Exchange

  Exchange foreign currency at commercial banks, foreign exchange institutions, or ATMs across China. The maximum amount of RMB cash you can carry upon entry or exit is RMB 20,000 (approximately US$2,813).

Transportation and Accommodation

Understanding transportation options and accommodation processes is vital for foreign businesspersons in China:

1. Train Travel

  Purchase train tickets using your passport or foreign resident ID. Identity verification is required for ticket purchases and changes.

2. Air Travel

  Book tickets via official airline apps or websites, and pay using Alipay, WeChat Pay, or UnionPay. Changes and refunds are subject to airline policies.

3. Subway and Ride-Hailing

  Subway tickets can be purchased with cash or digital payments. For ride-hailing, use apps like Alipay or WeChat.

4. Car Rentals

  Rent a car with your passport, valid residence permit, and Chinese driver’s license. Some countries have agreements with China for driver’s license recognition.

5. Hotel Stays

  Make reservations online or by phone. Provide valid identification upon check-in, and pay using cash, credit/debit cards, Alipay, or WeChat Pay.

Services for Stay and Living in China

1. Visa Extensions

  Extend your visa if your original purpose of entry remains unresolved. Submit necessary documents, including a valid passport and proof of application reasons.

2. Residence Permits

  Apply for a residence permit at local public security exit-entry administration departments. Required documents include a passport, completed application form, and proof of purpose.

Social Services and Obligations

1. Work Permits

  Work permit applications are submitted online by your employer. Required documents include proof of qualifications, a no-criminal-record certificate, and a medical certificate.

2. Social Insurance

  Foreign workers in China must participate in social insurance. The coverage includes various categories based on your work permit and residence status. Nationals from countries with social security agreements with China may be exempt from certain obligations.

3. Individual Income Tax (IIT)

  Individual Income Tax (IIT) applies to all residents, with rates ranging from 3% to 45%. Your employer is responsible for withholding and paying the tax on your income. China has Double Taxation Avoidance agreements with 114 countries, providing possible treaty benefits.

Conclusion

The updated Guidelines for Foreign Businessmen to Live and Work in China are an invaluable resource for anyone planning to reside and conduct business in China. By adhering to these guidelines, foreign businesspersons can ensure a smooth and compliant experience, from initial arrival to long-term settlement.