China’s new “Exit and Entry Administration Regulations” will officially take effect starting next Tuesday (September 15), causing concerns among Chinese nationals holding overseas permanent residency or foreign passports who are now facing obstacles when exiting the country. The U.S. ambassador to China has issued multiple warnings, leading overseas Chinese to cancel their return tickets.
Los Angeles resident Ms. S shared that a business acquaintance of hers recently considered returning to China, but upon hearing about the difficulties faced by Chinese nationals when exiting the country after returning and re-entering the U.S., he became worried. Seeking advice, he consulted an American lawyer who reassured him that as a green card holder, he should not face any risks. However, his friends pointed out that his main concern should not be entering the U.S., but rather whether he could smoothly depart from China.
“He is a businessman, and now the Chinese government is conducting a global tax probe dating back 25 years on some overseas Chinese doing business,” Ms. S explained. The 25-year retrospective examination could lead to severe financial losses. Now, the choice to return to China is like “walking into a trap,” and caution is advised before making any decisions.
Last month, the UK’s Financial Times reported that China has expanded its tax investigation on Chinese tycoons, scrutinizing their overseas assets and investment returns, including overseas real estate, stocks, precious metals, cryptocurrencies, and trusts. Even before specific regulations were put in place, certain regions such as Shanghai, Shenzhen, and Jiangsu have already started imposing a 20% tax on overseas trusts.
Ms. M, a naturalized U.S. citizen in Los Angeles, recently returned to China without facing any difficulties at the exit point. However, one of her business associates was not as fortunate. The associate attempted to deregister a company registered in China but encountered obstacles from tax, commerce, labor, and other departments, demanding payment of various outstanding debts before allowing the associate to depart the country.
Another Los Angeles resident, Mr. Zheng, recently dissuaded a trader who had purchased a return ticket to China. Initially skeptical of Zheng’s advice, the trader personally contacted friends responsible for airport ticketing in China. His friends confirmed that the current situation was indeed abnormal, leading the trader to cancel his plan to return to China by tearing up his ticket.
Not only are companies being pursued for tax payments, but individuals are also being chased for income tax payments. The China Taxation News revealed this year that residents in Shanghai, Shandong, Zhejiang, and other regions are being investigated for undeclared overseas income, some facing over 1.2 million RMB in overdue overseas taxes and fines.
According to the “Exit and Entry Administration Regulations,” applicants for departure must provide relevant documents, data, electronic receipts, invitation letters, and other application materials. However, the actual verification process is much broader than the explicit provisions stated.
Mr. Liu, who has made multiple trips between China and the U.S. for family visits, shared with Epoch Times that after purchasing a flight to Los Angeles, the local police station asked many unexpected questions, including the names, occupations, and housing situations of his relatives in the U.S.
Under Article 6 of the new regulations, the decision-making bodies must notify the immigration authorities to enforce the ban on exiting, providing written reasons for the ban to the individual concerned. However, if it is believed that national security or criminal investigations may be impacted, reasons for the ban may not be provided.
Former Chinese lawyer You Feizhu summarized his overall opinion on China’s new exit and entry regulations as “unleashing administrative power and depriving citizens of freedom to enter and exit the country.”
Regarding the random inspection of electronic devices such as phones during departures, You Feizhu pointed out that this violates the communication secrecy and personal privacy rights granted to citizens by China’s Constitution. He stated, “Port law enforcement is not beyond the law. The lack of statutory criminal procedures and clear search warrants for compulsory inspections essentially represents illegal expansion of law enforcement authority.”
Regarding Article 6 of the regulations – deprivation of the right to appeal and review without providing reasons or written justifications, You Feizhu believes this is covert operation, expanding and schematizing the exception clauses related to national security, “arbitrarily tearing apart statutory procedures for administrative convenience, which is a typical administrative violation.”
You Feizhu also remarked that these practices, which claim to be in the name of “security” or “management” but actually infringe on the basic human rights of citizens, not only seriously violate China’s current “Administrative Procedure Law” and “Legislation Law,” but also represent a legal regression, lacking procedural justice and inevitably creating a sense of personal insecurity for everyone.