Analysis-China’s new K visa beckons foreign tech talent as US hikes H-1B fee

By Eduardo Baptista

BEIJING (Reuters) -China’s new visa programme aimed at attracting foreign tech talent kicks off this week, a move seen boosting Beijing’s fortunes in its geopolitical rivalry with Washington as a new U.S. visa policy prompts would-be applicants to scramble for alternatives.

While China has no shortage of skilled local engineers, the programme is part of an effort by Beijing to portray itself as a country welcoming foreign investment and talent, as rising trade tensions due to U.S. tariffs cloud the country’s economic outlook.

China has taken a series of measures to boost foreign investment and travel, opening more sectors to overseas investors and offering visa waivers for citizens from most European countries, Japan and South Korea among others.

“The symbolism is powerful: while the U.S. raises barriers, China is lowering them,” said Iowa-based immigration attorney Matt Mauntel-Medici, referring to China’s new visa category, called the K visa, which launches on Wednesday.

“EXQUISITE” TIMING

The K visa, announced in August, targets young foreign science, technology, engineering and mathematics (STEM) graduates and promises to allow entry, residence and employment without a job offer, which could appeal to foreign workers looking for alternatives to U.S. job opportunities.

Earlier this month, the Trump administration said it would ask companies to pay $100,000 per year for H-1B worker visas, widely used by tech companies to hire skilled foreign workers.

“The U.S. has definitely shot itself in the foot on H-1Bs, and the timing is exquisite for China’s K visa,” said Michael Feller, chief strategist at Geopolitical Strategy.

Other countries including South Korea, Germany and New Zealand are also loosening visa rules to attract skilled migrants.

Immigration experts say the main attraction of the K visa is no requirement of a sponsoring employer, which has been regarded as one of the biggest hurdles for those seeking H-1B visas.

The H-1B visa requires employer sponsorship and is subject to a lottery system, with only 85,000 slots available annually. The new $100,000 fee could further deter first-time applicants.

“It’s an appealing alternative for Indian STEM professionals seeking flexible, streamlined visa options,” said Bikash Kali Das, an Indian student at Sichuan University.

India was by far the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries.

LANGUAGE BARRIERS AND UNANSWERED QUESTIONS

Despite its promise, the K visa faces hurdles. Chinese government guidelines mention vague “age, educational background and work experience” requirements.

There are also no details on financial incentives, employment facilitation, permanent residency, or family sponsorship. Unlike the U.S., China does not offer citizenship to foreigners except in rare cases.

China’s State Council did not respond to a request for comment asking for more details on the logistics and underlying strategy of the K visa.

Language is another barrier: most Chinese tech firms operate in Mandarin, limiting opportunities for non-Chinese speakers.

Political tensions between Delhi and Beijing could also become a factor that could limit the number of Indian K visa applicants China is willing to accept, experts said.

“China will need to ensure Indian citizens feel welcome and can do meaningful work without Mandarin,” said Feller.

K VISA: AN ALTERNATIVE FOR WHOM?

China’s talent recruitment has traditionally focused on China-born scientists abroad and overseas Chinese.

Recent efforts include home-purchase subsidies and signing bonuses of up to 5 million yuan ($702,200). These have drawn back U.S.-based Chinese STEM talent, especially amid Washington’s growing scrutiny on ties to China.

“The recruitment effort targeting Indian tech talent in China is growing but remains moderate compared to the more intensive, well-established, and well-funded initiatives aimed at repatriating Chinese STEM talent,” said Sichuan University’s Das.

A Chinese STEM graduate who recently got a job offer from a Silicon Valley-based tech company was also sceptical about the K visa’s prospects.

“Asian countries like China don’t rely on immigration and local Chinese governments have many ways to attract domestic talent,” he said, declining to be named for privacy reasons.

The U.S. has over 51 million immigrants — 15% of its population — compared to just 1 million foreigners in China, less than 1% of its population.

While China is unlikely to significantly alter its immigration policy to allow in millions of foreign workers, analysts say the K visa could still boost Beijing’s fortunes in its geopolitical rivalry with Washington.

“If China can attract even a sliver of global tech talent, it will be more competitive in cutting-edge technology,” Feller said.

($1 = 7.1201 Chinese yuan renminbi)

(Reporting by Eduardo Baptista; Editing by Miyoung Kim and Lincoln Feast.)