China plans to implement a "green card" system in 2004. Shanghai will be the first city to adopt the long-anticipated long-term residence permit.
The "green card" system has been created by the Ministry of Public Security, hoping to attract more senior level foreign experts and funds from abroad.
Under the new system, foreigners living or working in China will not have to apply for visas when leaving or entering the country.
Besides foreigners, the green card system is also aimed at attracting overseas Chinese back to China.
The system will facilitate their return and allow them to keep their citizenship elsewhere while living and working permanently in China.