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We explain the China permanent residence application process, with a focus on Shanghai, and benefits for foreigners living and working in the city.
Due to the COVID-19 pandemic and ensuing travel bans, many foreigners working in China have begun to consider applying for a Chinese “Green Card”, or permanent residence ID card. With the card, an expatriate will be able to
enter China just like Chinese citizens, without going through visa formalities.
Holders of a Foreigner Permanent Residence ID Card are not only free to enter and exit China but also allowed to reside and work in China indefinitely. In addition, the card will bring them convenience in employment, children’s education, social security, healthcare, finance, transportation, accommodation, property purchase, and many other aspects of life in China.
This article explains the main benefits of obtaining a Chinese permanent residence ID card, the eligibility criteria for foreigners to apply for such a card in Shanghai, and the points to note when applying.
What benefits can be enjoyed by foreigners with Chinese permanent residence status?
According to the Measures on the Relevant Benefits for Foreigners with Permanent Residence Permit in China (
Ren She Bu Fa [2012] No.53), in theory, foreigners granted permanent residency enjoy the same rights and bear the same obligations as Chinese citizens, except the political right and some certain rights and obligations subject to China laws and regulations.
Perhaps the biggest benefit of obtaining the Chinese permanent residence status for foreigners is the elimination of the cumbersome visa application procedures. With a permanent residency, the foreigner is allowed to live and work in China without any restriction – they do not need to apply for other residence and work permits, nor do they need additional visas to enter and exit China.
Although all foreigners working in China can participate in social insurances, permanent residence ID cardholders enjoy more convenience in going through the formalities of transferring, continuing, or terminating their social insurances by presenting their green card.
Besides, foreigners as permanent residents are also allowed to purchase a commercial apartment for self-use, without the need to have first worked or studied in China for several years. They shall still be subject to restrictions on purchasing properties in China and cannot engage in property market speculation.
Education-wise, cardholders accompanying children are allowed to enter a school for the nine-year compulsory education. And if they are eligible, the education department of the holder’s residence will help deal with the admission and transfer formalities following the principle of admission to neighborhood schools and will not charge fees other than those required by the state.
In terms of investment, foreigners with permanent residence are able to set up and contribute to the registered capital of a foreign-invested enterprise (FIE) by intellectual property/intangible assets or making direct foreign investment in China with legally obtained RMB, which may reduce the investment and exchange costs.
Further, the permanent resident ID card, which is now machine-readable, can also be used in various aspects of the foreigner’s life in China, for example, in relevant boarding procedures in the case of domestic flights, purchasing train tickets of domestic trains, and handling check-in procedure at domestic hotels. The card can be used as a valid identity document to apply for the driver’s license and registering motor vehicles and handle banking, insurance, securities, foreign exchange, and other financial business in accordance with regulations.
Source: China Briefing
