Introduction
Several nations have moved towards ensuring that the locals and immigrants consume their locally produced goods and services. However, there are challenges in the production of goods and services that always drives nations into outsourcing specific commodities that they cannot produce locally. This could be because these nations lack the raw materials for producing these goods and services such as technology, personnel or other factors, which are unique to every nation. However, some nations export their technologies to other countries without much ado, but they put many bureaucratic procedures aimed at discouraging foreign investors from venturing into the local markets. These protectionist strategies, which include the ill treatment of foreign professionals and expats in alien territory often, discourage peaceful relationships among countries. In this paper, I will discuss these protectionist policies, especially those related to amendments on visa policies of the Chinese government. I will also consider these policies and their impacts on the foreign workers and expats as well as the reverse impacts to the Chinese government.
Even though investors and professionals are moving towards foreign direct investment, certain countries have enacted policies and regulations that discourage foreigners from investing into their market. In order to work as a professional or engage in a foreign direct investment, an individual (foreigner) requires a visa to either stay in that country, transit through, or exit from the country (a national moving out to the international community). Every country has a department entitled with the responsibility of ensuring that emigrants and immigrants have authorization to either exit, transit through or enter into their nations. In China, the Chinese Ministry of Foreign Affairs, through its authorized departments of Consulates, Chinese Embassies, and other departments have the permit to issues Chinese Visa to authorized individuals interested in entering, transiting trough, or exiting China.
Discussion
In the United States, Chinese investors and companies such as AMC movie theaters and Lenovo, formerly known as IBM’s personal computer business carry out their business operations freely in the markets without any subjection to special conditions other than those that are imposed on the local companies. Researchers have found out that this is not the same scenario in China. Chinese authorities often force foreign companies in their industries to share ownership with state owned companies. Additionally, there are many bureaucratic measures in making investment decisions, especially when allowing a foreign company to enter into Chinese markets. These foreign businesses are also faced with the restriction of making special deals on sales or supplies with local companies. Professionals seeking employment are also not left behind in the state dominated Chinese economy.
As opposed to the situations in a free market, several economists have categorized the Chinese market as a protectionist economy, where the government seeks to protect the nationals from the ‘interference’ of aliens. The most notable protectionist strategy that has been identified in the Chinese government is their visa policies. The following are some of the amendments to the Chinese visa rules that have been used to discourage foreigners:
- L and F visa extensions take 7 working days (Ira, 2008)
L and F visas refer to Tourist and non-commercial visas respectively. These visas take a short duration of stay in the Chinese territory of up to a maximum of 90 days (Expat Service Center-BESC-Beijing, 2013). They are offered to tourists, visitors (family and exchange visits), internships, and inspections. In the past, this visa extension could take a maximum of 5 working days. Additionally, in the past, L visas could be extended twice in 30 days each time. However, tourists and visitors holding this visa can now get the extension only once with a maximum of 30 days. Under normal circumstances, several passport holders could get the extensions by simply paying a fee. However, commencing from 1 July 2013, the extensions have been eliminated. Additionally, changing from L to F visas have been done away with, but individuals interested in working in China should apply for Z work Visas.
For an alien to be granted a Z visa, he or she must be in employment in a registered company, pass through a medical test, a graduate for a minimum of two years and must also provide recommendation letters from their previous employers. Additionally, for an individual to qualify for this position and that the position could not otherwise be filled by local professionals. For instance, a graduate foreign English teacher applying for a position in Chinese schools must provide his credentials proving that he has been practicing and authorized by his local authorities, and that the school cannot source local English teachers.
- Residence permit application takes 15 working days after (Ira, 2008)
Resident permits allow individuals such as professionals to remain in China while working in the Chinese industries. In the past, resident visa application took only five working days. The Chinese government decided to extend the number of days to three times more than the former. According to economists, this is a protectionist visa policy meant to delay interested professionals in their quest to work in the Chinese industries (Expat Service Center-BESC-Beijing, 2013).
- Increase of fines on visas (Ira, 2008)
Prior to the adjustments on the visa policies, if an alien (visiting friends or family) registers too late (more than 24 hours) in the police station requesting for the form for registration of temporary residence, the government had put a fine of 500RMB (Expat Service Center-BESC-Beijing, 2013). However, after the adjustments, the fine has been increased to 2,000RMB, which is 4 times higher than the former amount. According this adjustment on the policy, it is evident that Chinese authorities are not only interested in knowing the new entrants into their territory, but also out to ensure that these people remit the money from their countries to the Chinese authorities. Additionally, overstaying on a visa is currently charged at 500RMB per day up to a maximum of 10,000RMB. Previously, this fine was only 5,000RMB (Expat Service Center-BESC-Beijing, 2013). These fines have been increased in order to ensure that the aliens staying in China adhere to the restrictions and remit more money to the national government in case they default.
The political system and capitalist ideology of the Chinese nation pose a threat to the international and global markets. This is viewed to be so considering the fact that Chinese companies compete in the global and Chinese markets, but other global companies are not given equal chances in the Chinese markets.
In 2011, a British man working at a Beijing school was allegedly accused of raping a Chinese child and was reportedly wanted by both the Chinese and British authorities (Benjamin, 2013). For the Chinese people, it is well known that a foreign face is not all that is required of an individual to be hired as an English teacher, notwithstanding the qualification. Following the aforementioned scenario, foreign instructions in Chinese schools have been facing increased scrutiny and several teachers are consequently losing their jobs. The 47-year-old man, who turned himself into the Chinese authorities, had been a foreign teacher in an international school in Beijing for about four years (Benjamin, 2013). He resigned from this profession due to reasons he classified as personal, before he was later charged with this crime.
Conclusion
Every country would always wish to protect the local industries. These local industries would also wish to develop and venture into the foreign markets. This is the same case in most of the developing and developed economies. Using protectionist strategies to ensure local industries are safe from the exploitation by the foreign industries is as important as allowing foreign companies to venture into the local industries in order to create a healthy balance of payment.
China is an exceptional case. The Chinese authorities have been mending their rules to discourage direct foreign investments into their industries. Chinese industries such as Lenovo and AMC movie theaters have equal opportunities in the United States as those granted to the local companies. These Chinese companies negotiate and operate in the United States markets without restrictions or disturbances. However, American and other foreign investors in the Chinese markets are faced with bureaucratic measures meant to discourage direct foreign investments.
Professionals are not excluded from these protectionist policies. The Chinese authorities, through its departments responsible for issuing visas have amended their policies to ensure that visitors and professionals seeking work are discouraged from coming into Chinese territory (Ira, 2008). Professionals such as teachers also have a hard time in their working environments (Edgar, 1998). Despite the low payment of foreign professionals, that China would have otherwise not found in their local markets the working conditions of these foreigners are discouraging. Some live below the poverty lines as their agents greatly benefit from them.
Visa policies are the most discouraging for foreign workers, visitors and expats. The policies surrounding the acquisition of a visa have been changed to include bureaucratic and time-consuming procedures. Hefty fines have also been introduced on foreigners who either overstay their visa, visitors who fail to register at a police station, or expired visas. In my opinion, these Chinese protectionist policies discourage foreign workers and expats. China also stands to lose since it cannot produce all the goods and provide all the services without foreign intervention. For instance, English teaching Chinese are very few compared to the number of schools. Therefore, mistreating foreign English teachers would mean that these foreigners would withdraw their intervention and Chinese-English students would suffer.
References:
Benjamin C., (May 1, 2013). China's Foreign Teachers face Scrutiny after Pedophile Scare. Retrieved from http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/130501/china-foreign-teachers-pedophile-neil-robinson
Expat Service Center-BESC-Beijing. (2013). China’s New Visa Policy and Regulation Changes. Retrieved from http://www.beijingesc.com/news/122-2013-july-1st-china-visa-policy-and-regulation-changes.html
Ira Phillips. (August 18, 2008). China’s New labor Law: A View from Foreign Business. In 2008: Vol. 7, No. 3, Perspectives on China's New Labor Law. Retrieved from http://www.chinacenter.net/chinas-new-labor-law-a-view-from-foreign-business/
Edgar A. P., (1998). Foreign Teacher's in China: Old Problems for a New Generation. Revised edition. Greenwood Publishing Group, Incorporated. Westport, Connecticut
