October 5, 2021
WHAT IS THE A, B, C TIER SYSTEM INTRODUCED IN CHINA?
China's new work permit system for foreigners is now in effect nationally. The old Alien Employment Permit and the Foreign Expert Permit have been consolidated into a single work permit for any foreigner entitled to work in China under the new structure.
The system's adjustments result in a more simplified approach that eliminates inconsistencies in regional administration and allows firms to submit applications online. Furthermore, the reform has clarified any ambiguity that may have been among foreigners regarding which permit to apply for.
i. Class A (High-end Foreign Talents)
ii. Class B (Talents for Work) and
iii. Class C (Other foreigners fulfilling local labor market need) for classified management positions.
I. Class A (High-end Foreign Talents)
Around 1 out of 7 foreign workers in China are classified as Class A. They receive advantages not available to Class-B and Class-C employees because they are more attractive to the Chinese government. Their application will be accepted faster, and processing times will be about five days.
During the application procedure, they can also employ paperless verification. They are also exempt from the regular age, education, and job experience criteria. Class-A workers, on average, have a more pleasant working environment before, during, and after the application process. The general six main categories are as below:
1) Selected for the Domestic Talents Programs;
2) Conforming to the international criteria of professional achievement;
3) Innovative and entrepreneurial talents;
4) Outstanding young talents;
5) Graded 85 points or more in Score Table;
II. Class B (professional talents)
People who fit into this group are eligible for a one-year work visa as well as a residency permit. Around 3/5 of foreigners in China are B-Class employees. In comparison to Class A, they may have a harder time obtaining a work visa in businesses that are already overburdened with foreign labor.
This group primarily consists of foreign professionals with at least a bachelor's degree and at least two years of relevant work experience, as well as skilled talents with qualification certificates and annual salary income that is four times or more than the local average annual income for the preceding year.
III. Class C (Other foreigners meeting the demand of the domestic labor market) for corresponding classified management.
People who fit into this group are eligible for a one-year work visa as well as a residency permit. Approximately 1/5 of expats are C-class employees. This is the group in which firm representatives who are stationed overseas for a few months, as well as those who enter China as part of the Chinese government's young talent programs, generally fall. C-Class permits are normally valid for a shorter amount of time and are subject to labour market demands. It takes time for them to be processed as well.
Foreign employees and foreigners working in temporary or short-term roles (no more than 90 days) are included in this group, as defined by China's applicable foreign employment regulations.
THE WAY AHEAD
Historically, most people who hold a work visa in China would have no need to be concerned. When applying for a new permit, the majority of people who qualified under the former system will achieve at least Tier B status.
Most mid-level to senior managers or technical professionals should be clear to acquire Tier B or above classification as new candidates. Anyone with experience and credentials in the fields of science, technology, engineering, and mathematics (STEM) will have no difficulty in this respect.
The new tier structure also benefits those in mid-level to senior jobs in higher education. Businesses that are looking to hire recent university graduates for entry-level work may be disappointed.
In some circumstances, such as inside free trade zones, there are ways to get around the two-year restriction. However, without at least two years of industrial experience overseas, the ordinary bachelor's degree holder will find it difficult to obtain job in China.
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