A number of steps are involved in the hiring of a foreigner.

First, a job is offered. Then the company applies for an employment permit at a foreign employment center. At the same time, a residence permit is applied for at the exit-entry administration, which is under the public security bureau.

The validity period for these two permits is granted according to the contract duration presented by the company.

The draft received a mixed response from foreigners on Tuesday. While some of those interviewed by China Daily in Shanghai, Beijing and Guangdong seemed unconcerned, as they are on long-term contracts, others thought that the proposed regulations will deter people from coming to China.

Amid ongoing efforts to curb the numbers of illegal foreign residents, the draft also proposed raising the financial penalty for companies that give foreigners fake invitation letters.

The proposal, if passed, will raise the punishment to 5,000 yuan ($790) from 2,000 yuan, for companies and institutions that provide fake certificates or invitation letters to unqualified foreigners. The clause also requires companies to cover the cost of deportation for foreigners.

Standing laws in China give no details on the financial punishment for companies who issue fake certificates and Invitations to help unqualified foreigners to apply for a visa or a visa extension.

The draft has suggested introducing a new category of visas, named "talent visas", to attract more foreigners.

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