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China Visa Certainty: Z (employee) Visas Are Z Best

By Dan Harris and Steve Dickinson

Got a worried call the other day from a China based foreign businessperson complaining about being forced to return to his home country because his China tourist visa was about to run out. Not only was he mad about being unable to renew his visa from within China or even by jumping over to Hong Kong, but he knew his chances of getting a new multiple entry visa were extremely low. Our conversation from this point went something like this: Him: I have a $5 million a year business to run in _______(Chinese city). Me: I understand your concern. Him: Doesn't China care about business any more? How can they expect me to run my business from ________(foreign city). There is no way that is going to work. Me: Are you familiar with Z visas? Him: Yes. Me: Have you tried to secure a Z visa? Him: No. Me: Why not? Him: I have only been in China for three years. When I first came in, things were different. We started out with only three Chinese employees. Back then, there were no laws in China. We have thought about setting up ourselves as a rep office. We really started looking into that l Me: You cannot be a rep office with what you are doing. Not even close. But what you are saying then is that you do not really have a company in China at all. Him: Yes I do. I just haven't registered it yet. Me: Well, if you want anything approaching certainty regarding your visa, we are going to have to form a WFOE for you. Him: Can you get that up and running within a month? Me: No. Him: Well then that is just not going to work. Me: Do you have something in mind that will work? Him: Not yet, but I will keep looking. I've been here for three years doing this and I just cannot believe that is just going to change like that. Me: But wouldn't you agree that it already has? Him: Maybe. Me: If you end up going the WFOE route, please let me know. This conversation is fairly typical as China continues cracking down hard on those in the country illegally and as it begins tightening its standards for receiving visas. The interesting thing about all this is that the foreigners who complain are almost always in China illegally or quasi-legally. The Bottom Line: If it is important to your company that you be in China, your only real solution is to secure a Z visa for employees and the only way you can be an employee is to have a real, registered, Chinese company for which you are able to work. We are hearing that China is generally issuing only Z visas for more than 30 days and that all other visas are becoming increasingly difficult to secure. In other words, you must get legal and though that cannot be done instantly, delay only breeds more delay. For the latest on what is happening in China with visas, check out the following: 1. "Bracing for Games, China Sets Rules That Complicate Life for Foreigners," in the New York Times. 2. "Visa Situation Goes from Bad to China Bad," on BizCult. 3. "Queue Up Now: China's Visa Nightmare," on the Huffington Post. 4. "As Olympics near, jittery China clamps down on foreigners, concerts," by McClatchy's Beijing Correspondent, Tim Johnson.

Full post as published by China Law Blog on April 27, 2008 (boomark / email).