The People’s Republic of China (“China” or “PRC”) has further eased cross-border travel restrictions and quarantine requirements after releasing the ninth edition of “COVID-19 Epidemic Prevention and Control Measures.” The new rules shorten the quarantine period for inbound travellers to a 7-day centralised quarantine followed by 3 days of home health-monitoring (so-called “7+3 policy”). (For related coverage, see GMS Flash Alert 2022-112, 9 June 2022.)
Why this matters
While there has been a gradual recovery of inter-regional movements and a rebound of business activities, companies and individuals need to consider:
- striking a balance between carrying out necessary business activities that require cross-border and/or inter-regional travel and managing compliance risks;
- learning to adapt to changes by deploying flexible work and employment arrangements; and
- identifying cross-border tax, social security, and legal issues so as to help mitigate risks and costs.
Background
On 28 June 2022, in order to help ensure adherence to the overall strategy of "preventing inbound cases and domestic resurgence" and the dynamic zero-COVID-19 approach, the Joint Prevention and Control Mechanism of the State Council published the ninth edition of “COVID-19 Epidemic Prevention and Control Measures” (“the Measures”) with updates concerning a shortened quarantine period and enhancing risk-area classification standards. In the meantime, the Ministry of Industry and Information Technology announced on 29 June 2022 that China removed the asterisk marks on digital travel history codes across the country, with the aim of balancing epidemic control and economic development.1
Salient Points
Shortened Quarantine Period for Inbound Travellers and Close Contacts
Adjustments | Old Policy3 | New Plan | ||
Quarantine period | Inbound travellers and close contacts2 | Centralised quarantine | 14 days | 7 days |
Home monitoring | 7 days | 3 days | ||
Secondary close contacts4 | Centralised quarantine | 7 days | / | |
Home monitoring | / | 7 days | ||
Frequency of nucleic acid testing | Inbound travellers and close contacts | Centralised quarantine | Nucleic acid test (nasopharyngeal swab)
| 1st, 2nd, 3rd, 5th and 7th day |
Home monitoring | / | Nucleic acid test (oropharyngeal swab) on 3rd day | ||
Source: KPMG in the People’s Republic of China
Optimised Domestic Risk-Area Classification Standards and Control Measures
Classification | Control Measures | Transition Measures |
High-risk zone |
|
|
Medium-risk zone |
| Downgrade to a “low-risk zone” if no new cases reported in 7 consecutive days |
Low-risk zone |
| / |
Source: KPMG in the People’s Republic of China
Domestic and Cross-Border Travel Restrictions Eased
- In June 2022, several provincial and municipal government authorities in China adjusted the domestic and cross-border travel restrictions to boost inter-regional travel and business activities.
- On 30 June 2022, China removed the asterisk marks on digital travel history codes across the country to make travel easier.
KPMG Note
The latest amended policies signal that the government is enhancing epidemic controls and prevention measures to help ensure quicker and more precise responses aimed at balancing epidemic control and economic development. While there has been a gradual recovery of inter-regional movements and a rise in business activities, companies and individuals should consider the following:
- Closely follow updates to immigration policies: companies and individuals should pay close attention to immigration and quarantine requirements stipulated by government authorities in the departing and destination countries/regions; evaluate employees’ relocation and movement plans; and formulate cost-effective relocation strategies.
- Formulate talent strategies: companies and individuals are looking to flexible work arrangements – including remote working – and adjusting policies and procedures to accommodate new ways of working. In light of this, companies may need to adapt their approaches and policies with respect to new tax, social security, immigration, and employment issues in a way that fosters risk mitigation and talent retention.
- Evaluate cross-border travel arrangements: individuals who are required to travel to China for work or other business-related activities are recommended to perform routine reviews of their travelling plans, including the length, nature, and purposes of the activities (to be) performed while outside their usual place of work, in order to identify potential risks associated with the travel and with the work arrangement, and deploy relevant strategies for risk and cost minimisation reasons.
Contact
Additional Resources
Footnotes
1 The asterisk mark on a travel code is a mechanism introduced by the Chinese government to flag people who have been to, or even just passed through, a mid- or high-risk city or area in the past 14 days on their digital travel card. The previous measure was to put an asterisk mark in respect of cities and areas announced as mid-risk or high-risk on travellers' digital travel histories in the past 14 days, which was often used as proof for local authorities to impose curbs or quarantines for the visitors.
2 “Close contacts” refers to individuals who have been in close contact with patients testing positive for COVID-19.
3 The quarantine period and control measures as outlined in the Old Policy are based on the eighth edition of “COVID-19 Epidemic Prevention and Control Measures.” Local practice varied across the country.
4 “Secondary close contacts” refers to individuals who have been in close contact with close contacts with patients testing positive for COVID-19.
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
Disclaimer
The information contained in this newsletter was submitted by the KPMG International member firm in the People’s Republic of China.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2024 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Chinese Mainland, KPMG, a Macau (SAR) partnership, and KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation.
For more detail about the structure of the KPMG global organisation please visit https://kpmg.com/governance.