On July 1st, 2013, the Law of the People's Republic of China on the Administration of Exit and Entry (hereinafter referred to as ‘Law on the Administration of Exit and Entry’) came into force. In the meantime, the Law of the People's Republic of China on Foreigners' Entry and Exit Administration and Law of the People's Republic of China on Its Citizens' Exit and Entry Administration were repealed.

Law on the Administration of Exit and Entry adds a new type of visa, i.e., talent introduction, the corresponding visa type is R visa issued to high-level talents or special talents that the country is in urgent need of. Law on the Administration of Exit and Entry also suggests that an administration system on work study of foreign students shall be established.

It is worth noting that, Law on the Administration of Exit and Entry clearly stipulates several circumstances under which a foreigner shall be deemed to be working illegally in China: (1) working in China without obtaining a work permit and a work-related residence permit as required;(2) taking up jobs other than the one permitted in China;(3) a foreign student working in China beyond the prescribed types of work or duration in violation of the administrative provisions on work-study.

According to the provisions, introducing foreigners to work illegally and illegally employing foreigners shall be imposed with a fine and the illegal gains shall be confiscated. The entity or individual offering the invitation letter, which is given for the purpose of applying visa for a foreigner, shall be responsible for the authenticity of the invitation. Violations of the stipulation shall be imposed with a fine, confiscated of any illegal gains and ordered to bear the exit expenses for the invited foreigner.

Law on the Administration of Exit and Entry also stipulates that, the shortest period of validity of a non-work-related residence permit and a work-related residence permit for foreigners shall be 180 days and 90 days respectively; and the longest period of validity shall be 5 years.

Further, as for the foreigner who has defaulted on the remuneration to employees, he/she may be prohibited from leaving the country.

KWM Comments: in order to cooperate with the national policy on introduction of high-level overseas talent, Law on the Administration of Exit and Entry adds talent introduction as a new type of visa. From now on, employers would have one more choice when applying for visas for foreigners. Moreover, employers should pay attention to the circumstances under which a foreigner shall be deemed to be working illegally in China, which are clearly stipulated by the Law on the Administration of Exit and Entry, and should apply relevant work and residence permit in a timely manner in order to avoid unnecessary legal risks.