Refer China: Province Pioneers Credit Rating System for Expats & Employers

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Province Pioneers Credit Rating System for Expats & Their Employers

In a recent press conference on institutional innovation cases held in Haikou, five breakthrough reforms were unveiled that aim to enhance urban development and contribute to the advancement of the Hainan Free Trade Port.

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Among these, a province-first initiative introduces a dual credit rating system for both employers hiring foreigners and the foreign nationals themselves.

This pioneering system integrates a four-color credit classification into government services, strengthening the overall management and support structure for foreigners working in Haikou.

Key Features of the Initiative

1. Dual-Subject Credit Evaluation Mechanism

This initiative is the first in the province to apply a dual-subject credit assessment system. It evaluates both employers and foreign employees simultaneously, with a primary focus on foreign nationals and a supporting assessment for employers.

2. Reinforcing Credit Awareness

Both entities are dynamically categorized into red, white, grey, or black credit levels. These designations are updated in real-time through a points-based ledger during administrative services. Entities listed in the red category benefit from fast-track services such as priority lanes, expedited processing, and on-the-spot approvals, etc. Conversely, those in the black category are subject to enhanced regulatory scrutiny and restricted services.

3. Integrated Work and Residence Permit System

Haikou has established a credit-linked administrative mechanism that processes work and residence permits for foreigners under a principle of measured flexibility. Red and white list applicants receive simplified and prioritized services, while grey and black list entities receive targeted guidance to improve compliance. Information sharing across departments boosts collaborative efficiency and responsiveness.

4. Harmonized Validity for Work and Residence Permits

Previously, mismatched validity periods of work and residence permits posed challenges. This new policy synchronizes the duration of both permits, aligning administrative policy with market needs and enhancing the overall business environment.

According to the Haikou Public Security Bureau's Exit-Entry Administration Division, since the implementation of the credit rating system, Haikou has processed 1,275 work-related residence permits. The system has proven to be a practical and impactful innovation in managing foreign affairs services.

Source: 自贸海口