Monthly Archive for October, 2008

New U.S. Embassy Opens in Beijing

 

New U.S. Embassy in Beijing

It looks like the new U.S. Embassy in Beijing will open for consular services on Tuesday, October 28, 2008. The Embassy’s notice is here.

The new location is No. 55 An Jia Lou Road. The entrance for consular services, including American citizen services and the visa section, is located at the Embassy’s east gate at the intersection of Tian Ze Road and An Jia Lou Road, close to Ladies’ Street (Nüren Jie) and Laitai Flower Market. The nearest subway location is the Liangmaqiao stop on line #10.

USCIS Finds Small Companies More Likely to Violate H-1B Rules

H-1B Benefit Fraud & Compliance Assessment, a study published by U.S. Citizenship and Immigraton Services last month, finds that small companies are more likely to violate the rules related to H-1B temporary work visas. This finding is unsurprising because–as my clients constantly remind me–the rules are hyper technical. They consist of hundreds of pages of regulations from USCIS, the U.S. Department of Labor, and the U.S. Department of State. In my opinion, the best way to reduce technical violations is to simplify the bewildering maze of rules.

Each year, 65,000 H-1B visas are made available to professionals with at least a bachelor’s degree to work to work for employers paying at least the “prevailing wage” for the job in the geographic area. For background about H-1B visas, see here.

USCIS’ study found fraud or technical violations in 20% of the 246 cases investigated. Technical violations included violations such as:

  1. The employer required the H-1B worker to pay the $750 or $1500 “ACWIA” filing fee, which by law cannot be passed on to the worker.
  2. The employer failed to pay at least the prevailing wage under U.S. Department of Labor rules.
  3. The H-1B worker was working in a geographic location not specified in the paperwork filed with the U.S. Department of Labor.
  4. The employer put the H-1B worker on unpaid leave (”benching”).
Based on the study, USCIS found that being a small company (25 or fewer employees, or gross annual income under $10 million) or being a new company (in existence for fewer than 10 years) is an “indicator” that fraud or technical violations are more likely. USCIS promised to “make procedural changes” to go after such violators.
It seems to me that it’s wrongheaded to crack down on small businesses. Instead, USCIS should crack down on fraud, wherever it is found. And USCIS should simplify the maze of H-1B rules to make it easier for small businesses to comply with the law.
H-1B visas are a good deal for businesses because they allow companies to recruit the best talent wherever it can be found. H-1B visas are a good deal for U.S. workers too because for each H-1B worker hired the employer pays the above-mentioned $750 or $1500 “ACWIA” fee to the federal government to be used for training U.S. workers so our country can compete better in the global economy.
In this economic climate, where the government just bailed out big business on Wall Street to the tune of $700 biliion, we should be making it easier for small business to compete by simplifying regulations rather than punishing small business for hyper-technical violations of byzantine rules.

Advantages of U.S. Naturalization Versus Keeping Chinese Citizenship

Our law firm represents clients in applying for naturalization as U.S. citizens. Naturalization applicants need to be clear, however, about the benefits of U.S. citizenship versus the benefits of keeping Chinese citizenship.

Notably, China does not recognize dual nationality for Chinese citizens. (An exception applies for Hong Kong citizens.) So, a Chinese citizen who acquires foreign citizenship of his own free will automatically loses Chinese citizenship. See PRC Nationality Law, arts. 3, 9. In contrast, the U.S. does recognize dual nationality in the sense that holding another country’s passport will not lead to revocation of U.S. citizenship. See 7 Foreign Affairs Manual sections 080(e), 082 (June 6, 2005).

So, what are the relative benefits and disadvantages of obtaining U.S. citizenship versus retaining Chinese citizenship? Generally speaking, many individuals who envision returning to reside in China decide not to naturalize in the U.S. because of the negative impact on future work and life in China. On the other hand, many people who plan to remain in the U.S. will choose U.S. citizenship because of the rights they gain. And many people who value future mobility beyond the U.S. and China choose U.S. citizenship because a U.S. passport offers better opportunities for visa-free travel. There is also an important subjective factor that many individuals would rather have citizenship where they feel they most “belong” for social, political, patriotic, or cultural reasons. Here are some specific factors to consider:

U.S. CITIZENSHIP–ADVANTAGES

  1. U.S. citizens can help certain family members to immigrate to the U.S.: This includes single children under 21 years of age, spouses, and parents, all of whom are considered “immediate relaties,” meaning that there is no waiting list to immigrate. In addition, citizens can petition for siblings, married sons and daughters, and single sons and daughters over 21 years of age. And a child born abroad to a U.S. citizen will usually qualify automatically for U.S. citizenship. In contrast, a lawful permanent resident (LPR) can only petition for spouses and unmarried children under 21 years of age, and in either case there are waiting lists to immigrate. (In addition, a child born abroad to an LPR may be granted LPR status if the child is under 2 years old and enters the U.S. accompanied by a parent upon the first return of the parent to the U.S. after the birth.)
  2. Obtaining citizenship for children born abroad: In most cases, a child born abroad to a U.S. citrizen is automatically a U.S. citizen.
  3. U.S. citizens are permitted to vote in elections for public office, and certain public offices may be held only by U.S. citizens.
  4. Certain government jobs are open only to U.S. citizens: This includes some jobs requiring security clearances.
  5. Mobility: Certain countries have fewer travel restrictions for U.S. citizens than for Chinese citizens.
  6. U.S. citizens are not subject to the laws regarding loss of LPR status: A citizen can’t be deported from the U.S. Also, an LPR–unlike a citizen–can lose LPR status by residing abroad.
  7. Social Security: A person who is not a U.S. citizen is prohibited from receiving Social Security payments if he or she has been outside the U.S. for more than 6 months unless the person’s country has a social security or pension system that reciprocates for U.S. citizens (totalization agreement). China does not have such an agreement with the U.S. Also, LPRs who are deported from the U.S. may lose their Social Security benefits.
  8. Estate Tax Laws: Certain U.S. estate tax laws may benefit U.S. citizens over noncitizens.
  9. U.S. Consular Services: U.S. citizens who enter other foreign countries with their U.S. passports are eligible for services from the American Citizen Services units of U.S. Embassies and Consulates.
  10. The Requirement to Carry ID: U.S. citizens do not need to carry proof of citizenship in the U.S. In contrast, LPRs are required by law to carry their green cards.
  11. Green Cards Must Be Renewed: LPRs need to renew their green cards every 10 years, but U.S. citizens never have to renew their certificates of naturalization.
  12. Government Benefits: U.S. citizens are entitled to some government benefits for which certain LPRs are not eligible.


U.S. CITIZENSHIP–DISADVANTAGES

  1. Jury Duty: U.S. citizens are required to perform jury duty when called by the courts.
  2. Taxes: Both lawful permanent residents (see here) and U.S. citizens are subject to U.S. taxes on their worldwide income.

CHINESE CITIZENSHIP–ADVANTAGES:

  1. Traveling to and Living in China: Chinese citizens can enter China visa-free and live in China without time limitations. For noncitizens, procedures for visa applications and renewals may be complicated and expensive. In particular, most foreigners do not qualify for permanent resident (green card) status in China. And those who do qualify are subject to “duration of stay” requirements limiting the time they can stay abroad without losing their permanent resident status.
  2. Sponsoring Relatives: Chinese citizens can sponsor relatives for visits with L visas. See here.
  3. Government Jobs: Most government jobs are open only to Chinese citizens.
  4. Real Estate Ownership: Laws related to purchasing real estate are more restrictive for foreigners. See here.
  5. Eligibility for Chinese social welfare benefits: Chinese citizens employed in PRC are entitled to social welfare benefits, including medical, housing, pension, unemployment insurance, etc. Foreigners may or may not not be eligible for these benefits, depending on their qualifications and local government policies.
  6. Child’s Immigration Status: If both parents are foreigners, a child born in China will also be a foreigner. The child will then lack certain government benefits available to Chinese children. For one thing, public school tuition will be charged at a higher rate.
  7. Re-Acquiring Chinese Citizenship: PRC citizens who naturalize in the U.S. (or any other country) lose their PRC citizenship. It may be difficult or impossible to re-acquire Chinese citizenship in the future.

CHINA CITIZENSHIP–DISADVANTAGES:

  1. One-Child Policy Applies: Family planning laws don’t apply to foreigners.

OTHER FACTORS TO CONSIDER:

  1. USCIS can discover information about the applicant during the naturalization application process that might make him or her subject to deportation from the U.S. (For example, USCIS could discover that the applicant made a misrepresentation in her earlier application for a green card).

Please use the comments to add additional factors that you think should be considered.

And for more information about the requirements and procedures for naturalization, see the “Citizenship” section of our firm’s website, www.fwhonglaw.com.

EB-5 Investor Visa Update from USCIS

On Sept. 22, 2008, U.S. Citizenship and Immigration Services released a powerpoint presentation with updates on the EB-5 investor visa program for Fiscal Year 2008. Here are the highlights:

  1. 12 new EB-5 regional centers were approved.
  2. 1017 Forms I-526, Immigrant Petitions for Alien Entrepreneurs, were filed.
  3. 350 Forms I-829, Petitions by Entrepreneurs to Remove Conditions, were filed.

What does this mean? First, with more approved EB-5 regional centers, investors now have more choices for passive investments, meaning more options for EB-5 investments that don’t require investors to establish and manage their own businesses. Second, while EB-5 filings are up, it’s still hard to call the EB-5 program popular–only a fraction of the total 10,000 visas per year are being used. You can see the powerpoint presentation here.