On June 30 of 2012, the Standing Committee of the National People’s Congress promulgated the new China  Exit-entry Administration Law , which will take effect on July 1 2013.

The back ground of the amendment
Since 1986, China has been witnessing great demographic change. By the end of 2011, there were 220,000 registered foreigners employed in China, nearly 3 times of the figure in 2000. However,problems related to illegal entry, residence and employment have become serious. Additionally, the current immigration system involes many ministries and departments.

Definition of illegal employment
The new immigration law defines illegal employment as foreigners working in China without a work permit and work-based residence certificate.

Explanation to the new immigation law
Article 12 of the new Law classifies visas into four types: diplomatic, courtesy, service and ordinary. In accordance with Article 42, various related departments under the State Council will periodically formulate and adjust the Industries and Occupations Guidance Catalogue. The Catalogue regards foreigners working in China according to economic and social development needs. It will also consider the supply and demand of human resources.Article 30 states that if a foreign national’s visa requires a residence permit to be obtained after entry into China, the foreign national should apply to the competent authority for this permit. Foreigners’ work-based residence permits will be valid for a minimum of 90 days and a maximum of five years, while non-work-based residences permits will be valid for a minimum of 180 days and a maximum of five years. 
Chapter 7 stipulates the penalties for illegal entry, residence and employment.A foreigner who works illegally in China will be subject to a fine of RMB5,000 to 20,000, which is a significant increase from the previous maximum fine of RMB1,000 . In the case of a serious violation, detainment of through 5 to 15 days could be levied. A warning will be given to foreigners illegally residing in China and a serious breach will lead to a fine of RMB500 per day, which is RMB10,000 at maximum, doubling the previous cap of RMB5,000, or imprisonment of five to 15 days, up from the previous three to 10 days.Employers who illegally employ foreigners may be penalised with a fine of RMB10,000 for each employee, up to a maximum of RMB100,000.
All individuals and organisations must report any illegal entry, residence or employment to the relevant local public security authority. Any individuals or organisations that assist those who break the Law may be subject to fines or even detainment.