We know that the China-Australia Free Trade Agreement (ChAFTA) which entered into force on 20 December 2015 makes a commitment to reduce labour mobility and improve temporary entry access for the Chinese into Australia. As an immigration lawyer, one key question I am now often asked by Chinese clients is: 'Does the introduction of ChAFTA lead to easier visa options to obtain Permanent residency in Australia?'

Below are some of the proposed changes brought about from ChAFTA which aim to facilitate greater mobility (for Chinese entering Australia)

  • Intra-corporate transferees and independent executives (including executives, managers and specialists) are allowed guaranteed entry up to 4 years
  • Contractual service suppliers are allowed entry up to 4 years, including guaranteed access for up to a combined total of 1,800 per year in the four occupations: chefs, Wushu martial artist coaches, traditional Chinese medicine practitioners and Mandarin language tutors
  • Installers and servicers are guaranteed entry for up to 3 months
  • Business visitors for up to 90 days, or 6 months for business visitors who are service sellers.
  • Introduction of working holiday visa arrangements to facilitate cultural exchange for young Chinese nationals (total of 5000 spots)
  • Through MoU the new Investment Facilitation Arrangements (IFA) allow Chinese owned companies registered in Australia undertaking large infrastructure development projects above $150 million to negotiate labour flexibilities for specific projects.
  • Liberation of the Foreign Investment Review Board (FIRB) screening threshold for Chinese investors in non-sensitive sectors from $252 million to $1,094 million (sensitive investment sectors include Media, telecommunications and defence-related industries).
  • Removal/reduction of tariffs for both import and exporting goods to facilitate greater trade and mobility
  • China's agreement to list on its 'Study Abroad' (JSJ) website (www.jsj.edu.cn) an additional 77 Australian private higher education institutions registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS)

Whilst the above changes that stem from ChAFTA appear to promote greater mobility for various visa options such as Investment, business sponsored and student visas, you may not realise that there exists Immigration policy and visa barriers, particularly when it comes to the stage of applying for permanent residency. Below are only some key immigration issues to consider:

  • For significant investors, the Department of Immigration now requires investors to inject 10% of the $5 million into highly volatile venture capital investments, and imposed a direct limitation on the balancing investment component which forbids investment on residential real estate to pass 10% of the total investment, which has always been a key area of Chinese investment into Australia.
  • For commodity trading, Importers/Exporters/Wholesalers are on the government Consolidated Sponsored Occupation List (CSOL) and sponsor-able under the 457 work visa program which can be later transitioned to 186 permanent residency. However, the current 457 program places a major emphasis on 'genuineness' of the position/role within the business, that the position cannot be created to secure a visa outcome.
  • Under the employer sponsored visa, DIBP policy specifies that it does not favourably consider business sponsors who are self -sponsoring, ie - directors and family members or relatives.
  • The need for a business to be 'non-speculative' in nature for business innovation visas, which may exclude businesses which manage speculative investments such as stocks and real estate.
  • Specific state requirements and preferred business sectors for business talent and investor visas
  • The English requirement for student visas and subsequent skills assessment and selection criteria for Independent skilled migration.

Do not confuse the liberation of investment and trade barriers between Australia and China brought about by ChAFTA for liberation of visa requirements. Whilst ChAFTA certainly creates increased opportunities between China and Australia, be sure to seek professional immigration legal advice before proceeding with hasty investments and/or business decisions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.