The Human Resources and Social Security Ministry of the People’s Republic of China (PRC) along with 24 other PRC government authorities jointly issued and enacted on 25 September 2012, the Administrative Measures on Entitlements of Foreigners with Chinese Permanent Residency (PR) in China [Ren She Bu Fa [2012] No. 53 (Circular No. 53)].
Circular No. 53 was issued to clarify the benefits entitlement of foreigners who hold PRC PR permits following the issuance of the Administrative Measures and Implementation Rules governing the approval of Chinese permanent residency for foreigners (Decree No. 74 of the Ministry of Public Security and the Ministry of Foreign Affairs) which specified the criteria, procedures, and administration of foreigners’ applications for permanent residency.
Key Entitlements of Circular No. 53
Foreigners who become PRC permanent residents are entitled to the same rights and obligations as Chinese citizens. The key entitlements worth mentioning are noted below.
Living and Working in PRC
Foreigners with PRC PR can live in China indefinitely, and can leave and enter China without the need to obtain visas, with a valid passport and foreigner’s Chinese PR permits. In addition, foreigners with PRC PR who wish to obtain employment in China are not subject to work permit application requirements.
Comprehensive Chinese Social Insurance Coverage in PRC
As with Chinese citizens, foreigners with PRC PR are covered by the Chinese social insurance system regardless of their employment status in China, which includes basic medical insurance and pension. They are also allowed to contribute to the Chinese housing fund and receive relevant benefits from the fund.
Investing in PRC
Foreigners with PRC PR are allowed to invest in China in the form of foreign-invested enterprises or foreign direct investment with the local currency (the renminbi) obtained from legitimate sources. They are also entitled to the same rights as Chinese citizens with respect to transactions involving banking, insurance policy, stock, futures, and other financial-related transactions.
Source: KPMG
