Impact on Mobility - Update from China - Dima Lorenz, VP Dwellworks China

Update 27th March 2020

The number of newly identified cases continues to fall in China and almost all new cases are now from new arrivals from outside of the country. With this, the focus of the Chinese government continues to be on preventing a ‘2nd wave’ or resurgence of the virus and has implemented a number of extreme measures to block and screen incoming arrivals.

For Mainland China

Arrival Procedures:

• On 26 March the Ministry of Foreign Affair has issued a statement to announce that China will temporarily block the arrival of all foreigners to China, no matter from which destination. Starting midnight 28th March, with just over 24hour lead time from the announcement, entry for non-Chinese nationals will be denied, even to those holding existing visas and work and resident permits. All port visa services will be suspended for the time being, including transit visas, special economic zone visas, APAC card permits, cruise ship visa exemption. The statement has described this as a temporary measure but did not provide any further guidance on the length of period.
• Entry with diplomatic, courtesy or C-Visa will not be affected.
• The statement continues to mention that ‘foreign nationals coming to China for economic, trade, scientific or technological activities or out of humanitarian needs may still apply for a visa at the China embassy or consulate’ – effectively leaving a potential door open for a case by case review, if arrival is deemed absolutely essential.
• For full copy of the statement please visit:
  
  • https://www.fmprc.gov.cn/mfa_eng/wjbxw/t1761867.shtml?from=timeline&isappinstalled=0
• Our team is already reviewing all active files and we are following up with your consultants should any of the active files currently under management be affected. 
• While these measures may appear far reaching and drastic, according to several reports, at present only an estimated 10% of arrivals to China are non-Chinese passport holders, with the large majority of arrivals currently being overseas Chinese students returning home.   
• For those still arriving we have received various reports on long and complex arrival procedures. Different cities have implemented different regulations at the airport, but in general we have been informed of delays of several hours upon arrival before being able to proceed. We have advised our incoming assignees to be prepared for long waiting period and subsequent procedures.
• In addition:
  
  • As of 23 March, China has confirmed that all passengers arriving at major city airports will undergo a compulsory ‘nucleic acid test’ for Covid19.
  • Beijing: at present all international flights to Beijing are diverted to 12 regional airports in order to conduct the appropriate tests. All new arrivals in Beijing, no matter from which destination, are then also required to undergo a mandatory 14-day central quarantine stay at a government approved hotel, and their own cost. Due to clusters of positive test results, family members may be separated to single rooms when at the quarantine facilities. Children 14 and older may also be in their own single room.
  • Shanghai: As off 26 March all incoming arrivals, no matter from which destination, will need to undergo a mandatory test and then need to undergo a 14-day quarantine, either at home, or a government approved facility. Transportation from the airport will be provided to the arrivals home, or the quarantine center.
  • Guangdong Province. All new Chinese arrivals in Guangdong, no matter from which destination, are now required to undergo a mandatory 14-day quarantine stay at a government approved hotel, and their own cost.

Impact on Destination Services:

• At present, anyone not required to stay at a government quarantine facility is required to undergo a 14-day home-stay or compound quarantine upon arrival. Each compound management or neighborhood community bureau is entitled to draw up their own regulation on this topic.
• Local and International Schools in China remain closed but are conducting online learning and virtual study programs. While no further official announcement has been made on a re-opening date, there have been rumors that some schools may re-commence ‘live’ teaching as early as Mid-April. Many schools had already requested for their teachers to return to China over the last weeks, and hopefully not too many will be caught by the newly initiated arrival ban.

• Campus visits are currently still not conducted but Admissions Offices are generally working remotely and are in contact with assignees on applications that have already been submitted.
• While property viewings are still restricted at many compounds, we have seen loosening of these regulations with more and more access being granted to enter compounds. Several of our housing partners, moving companies and handymen were able to access various compounds in Shanghai and we have started to provide accompanied home search where possible. 
• Hubei province has also lifted its lockdown and transportation measures and social and economic life is gradually returning. Wuhan itself will re-open from the lockdown on 8th April, but we are still collecting information on when we will be able to provide full services in this location.
• Social Activities: While some sports activities and clubs remain closed, we have seen a large number of re-openings during the last week. Many social spaces, public parks, promenades, zoos, libraries are now accessible. Public spaces have in fact been crowded last weekend with many residents taking the opportunity to venture outside. A large number of bars, restaurants, gyms and clubs have re-opened as well. 
• Cinemas are expected to open from 28 March in many destinations including Shanghai and Suzhou. Larger malls are mostly open with opening hours usually from 10am-8pm.
• Supermarkets and grocery stores are open. We are not receiving any news or reports on food or supply shortages and hygiene masks are also becoming more readily available in drugstores at most locations. Food and grocery deliveries are working well. We are providing information on English language apps and websites for assignees to be able to order their food and grocery deliveries online.
• Heavy and peak-time traffic jams are unfortunately also returning back to several cities, although this is another indicator of economic life returning to China. This also applies to public transport and domestic trains.
• Hygiene masks continue to be mandatory for most locations while outside.

Impact on V&I Services:  

• During this epidemic prevention and control period, foreigners who are staying in mainland China are entitled to have their Residence Permits automatically extended for 2 months to allow for delays in the reapplication. In Shanghai, the permit is only extended automatically up to 27 April 2020 for now. This extension also applies to the Z-visa application process. The labour bureau has also confirmed that there are no punitive actions due to any delay caused by bureau or medicals centers being closed during this time of crisis. With the newly instated arrival ban for foreigners we are expecting these measures to be further extended.
• New work permit applications can still be submitted through the standard online application process and original, face to face documents verification for most applications is currently not needed. We are expecting additional changes in the coming week, due to the newly stated arrival ban.
• For new residence permit application, physical presence at the local bureaus is still required.
• The medical centers in most cities have advised that foreigners can only conduct their check-up after 14 days of having arrived in the city. Similar to check-ins at hotels and serviced apartments, this is regulated through a location track search on the mobile phone.

Impact on Corporate Housing Services:

• Serviced apartments are each issuing their own regulations to accommodate arrivals from other countries. We are advising our clients on a case by case basis if their bookings are affected. 
  • Some serviced apartments are currently not taking any bookings for non-Chinese nationals. We are expecting for this number to increase due to the newly instated arrival ban. 
  • Some serviced apartments have been approved to offer home-quarantine services by the government and are able to offer accommodation for new arrivals (as long as they have tested negative on the preliminary screening).
  • Some serviced apartments only accept the guests who have been in China for more than 14 days with the quarantine completed.
  • For most cases, upon the check-in, the guests are required to provide a health QR code and complete a health declaration form. In some cases, assignees have been requested to provide a location track search on their mobile phone to document where they have been for the last 14 days.

For Hong Kong:

• Travel Ban: On 25 March, the HK government implemented an inbound travel ban on all non-Hong Kong residents coming from overseas.  This travel ban will remain in place until 8 April 2020 and is subject to review.  More information can be found on this government website: https://www.coronavirus.gov.hk/eng/inbound-travel.html
• Compulsory quarantine for HK residents coming from overseas:  A 14-day compulsory home (or other accommodation) quarantine is in place.  This quarantine order is expected to remain until 18 June 2020.  There are both hotels and serviced apartments who are willing to accept bookings from those observing quarantine. Dwellworks can assist with the appropriate bookings. 
• Education:  Schools to remain closed through to at least 20 April.  When schools re-open, they will do so in phases, with senior secondary pupils returning first and younger children staying at home until possibly June.  Children have been receiving a mixture of live virtual lessons, pre-recorded content, as well as study links, online resources and ‘home work’ to support their learning.  The Education Bureau is allowing graduating students, sitting imminent international exams, to attend the necessary tutorial sessions.  The government has confirmed the provision of subsidies to students to help alleviate school fees during class suspension. 
• School Admissions: For relocating executives and their families, whilst schools remain physically closed, admissions offices are still operating and accepting new enrolments but for the 2020/2021.  
• Immigration:  On 23 March, the Immigration Department reverted to increased WFH.  While Immigration is still processing visa renewals and new HKID applications, they have suspended all new work visa applications with no timeline shared for review or resumption of service.   
• DW operations:  Our operations remain status quo.