China residency processing time for expats make things difficult for businesses

By Marc Castro

Sep 09, 2013 08:29 AM EDT

Many foreign executives currently located in China have indicated their disdain with the application of the new rule allowing authorities to hold their passports for a period of fifteen working days when processing and renewing residency permits. The length of way can disrupt business travel within China itself and especially abroad.

The changes are clear proof of the increasing difficulty of doing business in China, especially after a number of investigations seem to be focused on foreign firms. 

This increased processing time from five days to fifteen days have received a 'flood' of complaints within the foreign executive community. According to Gary Chodorow, an immigration lawyer at Hong Law Offices based out of Beijing, "What concerns companies is profits. When people are grounded they are not doing business. They are making money."

These new rules became effective last July 1. Many Chinese officials said the goal is to manage the increasing flow of foreigners going into China, to protect national security and social order. The main agency is the Ministry of Public Security processes the residency applications that are renewed yearly. 

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