Posted originally on Sep 24, 2025 by Martin Armstrong |  

China declined to make an official statement regarding Donald Trump’s change to the H-1B visa. Around 12% of such holders in the US are Chinese nationals. Instead, China announced that it will launch a new K-visa, expanding its 12 existing visas, to attract global talent.

“In a globalised world, cross-border flow of talents is instrumental in global technological and economic advancement,” Foreign Ministry spokesperson Guo Jiakun stated. “China welcomes talents from various sectors and fields across the world to come and find their footing in China for the progress of humanity and career success.”

The visa will take effect on October 1, 2025, and is designed to attract skilled professionals in engineering, technology, mathematics (STEM), and science. Applicants must have a bachelor’s degree in STEM from a recognized university or research institution, and employer sponsorship is not required.

Sorry, but top talent is not eager to work in China. China is already experiencing record levels of youth unemployment at 18.9% as of August 2025. Around 12.22 million university graduates in China entered the workforce this year, up from 430,000 in 2024, and the competition is intensifying as the number of available jobs declines.

China also produces over 77,000 STEM PhD graduates each year, nearly double that of the US. Naturally China would like to attract Indian graduates as they are receiving the bulk of the burden of the H-1B visa change and 34% of all graduates in India have a background in STEM. India excels in IT services, electronics, biotech, and software. China has more opportunities in AI, semiconductors, manufacturing, and robotics.

However, China does offer a much higher salary for these workers than India. In fact, salaries in STEM in India are 2-3X lower compared to China despite working longer hours. China also offers more protections, such as medical benefits, paid leave, and retirement benefits.

The current flow of Indian graduates relocating to China is relatively low compared to those relocating to the US. Those who think US companies are xenophobic have not worked with China. The environment is not exactly welcoming to foreigners. China may take on additional workers who are denied access to the US workforce, but it will not be significant. Specific niches and fields may spark interest as China is becoming a superpower for clean energy and robotics. Yet, global talent will not flock to China for employment, and the K-visa in no way compares to the visa that provides a work opportunity in America–at this stage in time. The matter may be different as we approach the end of the Sixth Wave–2032–when China dethrones the US to become the financial capital of the world.