Beijing and Shanghai have simultaneously implemented stricter salary requirements for foreign nationals seeking work permits, signaling a shift in China’s approach to attracting global talent. The changes, which took effect earlier this month, enforce long-standing rules requiring Category A (high-end talent) applicants to demonstrate an annual salary at least six times the local average wage, and Category B (professional talent) applicants four times the average.
The move effectively ends a period of leniency adopted during the COVID-19 pandemic, when many local authorities exercised discretion in enforcing the salary thresholds. According to the Beijing Overseas Talent Center, Category A applicants in the capital must now earn at least RMB 859,464 annually (approximately US$119,000), while the threshold for Category B applicants is RMB 572,976. In Shanghai, the respective figures are RMB 895,248 and RMB 596,832.
The updated regulations are being implemented through automated verification systems, meaning applications falling even slightly short of the required salary will be automatically rejected. This represents a significant change for both employers and potential expatriate employees, who previously benefited from a more flexible interpretation of the rules.
The tightening of work permit criteria comes as China seeks to recalibrate its strategy for attracting foreign expertise. Rather than prioritizing sheer numbers, authorities are now focused on attracting highly skilled professionals whose expertise aligns with national priorities. This shift, described by some as a move from “quantity to quality,” reflects a broader ambition to foster innovation and technological advancement.
The implications for multinational corporations operating in China are considerable. Human resources departments will need to meticulously review compensation packages well in advance of work permit renewal dates, ensuring alignment with the new salary benchmarks. Companies may face increased payroll costs, and those unable to meet the requirements could be forced to relocate roles outside of China or explore alternative qualification pathways.
The new system also presents challenges for individual applicants. Those already in China will need to begin renewal planning significantly earlier – ideally three to six months in advance – and maintain impeccable tax records. Exploring options such as a points-based upgrade to Category A status may be necessary to secure long-term work authorization, particularly for those approaching the age of 60.
The changes in Beijing and Shanghai are widely expected to be mirrored by other major Chinese cities, including Shenzhen, Guangzhou, and Chengdu, in the coming weeks. This suggests a nationwide effort to standardize work permit regulations and enforce stricter compliance with salary requirements.
The re-enforcement of these salary thresholds underscores a growing trend of increased scrutiny towards foreign workers in China. While the country remains a significant destination for international talent, the government is increasingly focused on attracting individuals with specialized skills and substantial financial contributions.
For organizations navigating these complex regulations, specialized visa and work permit services, such as VisaHQ, offer assistance with the application and renewal process. These services provide up-to-date threshold calculators, document checklists, and on-the-ground support from bilingual case managers, aiming to minimize rejection risks and ensure compliance with the latest requirements.
The stricter regime also introduces greater liability for employers. Beijing’s new Salary Commitment Letter requires a written commitment with legal consequences for false declarations, further emphasizing the importance of accurate and verifiable documentation.
The shift in policy also highlights the evolving economic landscape in China. As the country continues to develop and its domestic talent pool expands, the need to attract foreign workers with exceptional skills and experience becomes increasingly selective. The higher salary thresholds reflect a desire to ensure that foreign professionals contribute significantly to the Chinese economy and align with the country’s long-term development goals.
The changes are likely to prompt a reassessment of expatriate compensation strategies across various industries. Companies may need to consider adjusting salary packages to remain competitive and attract top talent, or explore alternative strategies for deploying international staff in China.
The implementation of these stricter rules comes at a time of increasing global competition for skilled workers. China’s move to raise the bar for foreign work permits could potentially impact its ability to attract and retain top talent, particularly in sectors facing talent shortages. However, authorities appear confident that the new approach will ultimately result in a more highly skilled and productive foreign workforce.
