The China (Shanghai) Pilot Free Trade Zone (FTZ), located in Shanghai, is considering rule changes that will allow foreign nationals to get Chinese permanent residence much faster and easier than is possible at present. This is a major policy shift aimed at attracting foreign investment and global talent into the zone. Last week, Premier Li Keqiang visited the FTZ, which will make its one-year anniversary on September 29, 2014, and addressed the shortcomings of the current Chinese permanent residence process, stating “complicated procedures for green card applications have impeded the FTZ in attracting global talent. The zone can submit a reform plan to the central government with improvement suggestions for the convenient entry and stay of foreign talent, especially those with outstanding competitiveness.” A stark statistic of how difficult it is to get Chinese permanent residence for foreign workers is the number of applications authorities have approved: 5,000 since the program’s inception in 2003 – equating to about 500 per year. The Premier’s support is the clearest indication yet that easier access to Chinese permanent residence will be a reality, particularly as the FTZ is used as a test ground for bold economic and social initiatives that differ from China. Should the FTZ be permitted to reform the rules associated with obtaining Chinese permanent residence, the hope is that the benefits of such reform for the FTZ will lead to adoption of the modified rules throughout China’s provinces. Adoption at a national level will be highly challenging because of the highly bureaucratic nature and conflicts of interest among China’s governmental agencies. In the meantime, employers and foreign workers in the FTZ can realistically look forward to easier access to permanent residence, which will in turn make investment in the zone by companies and relocation to the zone by foreign workers and their families eminently more attractive than it is today.

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Photo of Ian Macdonald Ian Macdonald

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital domestically and internationally, including secondment agreements, benefits transferability, local host country employment concerns and immigration.

Ian and his team work closely with companies to manage and modify, where needed, corporate immigration programs to maximize efficiency, service and regulatory compliance levels. He is experienced with the full range of business immigration sponsorship categories (visas and permanent residence), anti-discrimination rules to reduce or eliminate risk of employment litigation, employer sanction cases, and I-9 and E-Verify compliance. Ian assists clients with establishing risk-based performance standards (RBPS) and Department of Homeland Security protocol, providing risk assessment assistance to corporations subject to Chemical Facility Anti-Terrorism Standards (CFATS) and assisting clients with ITAR/Export Control compliance within the immigration context.

Ian has developed strategic relationships abroad that he utilizes when working with clients to ensure compliance with foreign registration requirements. He is experienced with analyzing complex global mobility opportunities on country-specific matters to facilitate the transfer of personnel. Ian is also experienced in counseling employers on immigration strategy as well as immigration consequences of mergers and acquisitions, reduction in workforces, and furloughs.

Prior to joining the firm, Ian worked for the United Nations, various non-governmental think tanks and corporate law firms in London, Washington, D.C., New York and Atlanta.