China has launched a new visa program this week, targeting young workers in science and tech. The K visa allows foreign graduates to enter, live, and work in the country without a job offer. The plan comes as the U.S. moves in the other direction with higher costs for skilled worker visas.
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As a reminder, the U.S. government announced last week that firms will be required to pay $100,000 per year for each H-1B visa. These visas have been a main way for tech firms like Alphabet (GOOGL), Microsoft (MSFT), Meta (META), and Amazon (AMZN) to hire skilled foreign staff. The new fee adds to an already limited program that offers only 85,000 visas each year through a lottery system.
A Timely Move
By contrast, China is lowering barriers. The new K visa is expected to appeal to graduates who seek options outside the U.S. Immigration lawyers note that the timing is crucial. With the U.S. adding costs, China is showing it wants to be more open.
India is likely to be a main group of interest. Last year, Indian workers made up 71% of H-1B approvals. The K visa gives them a way to avoid the hurdles of employer sponsorship. For many, the chance to apply directly is an easier path.
Limits and Unknowns
However, the plan is not without limits. The Chinese government has not established clear rules on age, background, or work history. There are also no details on permanent residency or family rights. Additionally, most tech firms in China operate in Mandarin, which can create a barrier for foreign staff.
China’s past talent programs have mostly focused on drawing back Chinese workers who trained abroad. These efforts have included home purchase support and signing bonuses worth up to five million yuan, or about $702,000. The K visa marks a new step toward reaching beyond that group, even if the scale remains small.
Ultimately, China is unlikely to surpass the United States as a hub for foreign workers, as it boasts only about 1 million immigrants, while the U.S. has over 51 million. Yet even a modest shift could give Beijing more global reach in key tech areas.
Using TipRanks’ Comparison Tool, we compiled a list of all the major companies mentioned in the article, as well as other companies that could be affected by the U.S.’s new policy. The tool provides investors with a broader view of each stock and enables a more in-depth examination of the industry as a whole.
