China's new visa rules clear the stage for more interconnectedness

Editor's note: Matteo Giovannini, a special commentator on current affairs for CGTN, is a finance professional at the Industrial and Commercial Bank of China and a member of the Global Young Leaders Dialogue. The article reflects the author's views, and not necessarily those of CGTN.

In the last couple of months, a series of unprecedented initiatives have been taken by the decision-makers of the world's second-largest economy, which could have a dramatic impact on the careers and lives of businessmen, students and travelers.

On January 11, China's National Immigration Administration disclosed a package of revised rules that allow 24-hour visa-free transit, simplify visa renewal and extension, and expand the number of people who can apply for a visa on arrival. The implementation of five optimized visa measures, of which four initiatives are related to visa application and one is focused on border inspection, is aimed at facilitating the arrival of foreign nationals into China.

The decision represents an incremental step after the announcement made by the Chinese Foreign Ministry on November 24 of a visa-free entry for passport holders from France, Germany, Italy, the Netherlands, Spain, and Malaysia that allows individuals from the six nations to access Chinese territory and stay for a maximum of 15 days for business or pleasure.

The first consideration to make is that the Chinese government's progressive ramp-up in measures to boost people-to-people exchange, since the reopening of the country's borders to the rest of the world in early 2023, aligns with China's broader strategy of promoting a higher level of openness and encouraging cross-border interaction and collaboration.

The removal of barriers to entry can have the effect of facilitating a boost in collaboration between China and the rest of the world specifically among scholars, scientists and professionals in different fields who can now easily jump on a plane on short notice and travel to China for attending conferences, workshops, or for taking part in joint venture projects.

Considering that economic growth remains one of China's top priorities in 2024, as disclosed in the Central Economic Work Conference held in mid-December, the introduction of relaxed visa measures could be conducive to improving the country's business environment and attracting a larger inflow of foreign direct investments.

There is no need to say that the announced new policy is a game changer for the foreign business community since it will increase their opportunities for face-to-face interaction with Chinese companies and bring more mutually beneficial cooperation projects. Personal connections established in in-person meetings always contribute to a higher level of commitment and accountability, closing deals, securing partnerships, and obtaining commitments than discussions and negotiations conducted in a virtual context.

Tourism plays an integral part in every country's economy, generating revenue through expenditures on accommodation, transportation, food, and entertainment, as well as being a significant source of national employment. The proximity to the upcoming Spring Festival break, the most important traditional holiday in China, and a major travel peak period explains the timing of the announced optimized visa policy.

A continuous increase in the number of inbound travelers in 2024 combined with the resumption of international flights could have a beneficial effect on China's travel industry which has been fueled by a domestic travel boom and is expected to get back to pre-pandemic levels by the end of this year.

China has shown a warm and open gesture towards not only occasional travelers who visit the country for a short period for business or travel reasons but also those individuals who have decided to make the country their home.

The launch on December 1 of a new version of China's foreign permanent resident ID card, also known as the "Green Card" and "Five-Star Card," is a further testament to government authorities' efforts to make the country a welcoming place for foreign residents, providing more convenience in daily life through the access to the same services available to Chinese citizens.

All things considered, the recent visa-free agreements across Asia and Europe in addition to optimized visa measures and upgraded permanent residential permits demonstrate that China is not only opening its doors wider but also paving the way for a future characterized by greater cooperation and exchange.

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