The law also underlines the country's increasing efforts to attract high-caliber talented individuals from overseas to assist in the country's development, as it includes a new "talent introduction" visa category as well.
Ordinary visas will be granted to foreigners who enter the country to work, study, visit relatives, travel or conduct business, as well as to those who qualify for the "talent introduction" visa, according to the law.
"We will increase the eligibility quota for green cards and consider extending the applicable scope for duty-free entry and multiple-entry visas in order to make China more competitive in soliciting foreign investment and talent," Yang said while delivering a report on foreign entry-exit, residence and employment to the NPC Standing Committee.
Figures show that the number of foreigners who stayed in China for at least six months rose from less than 20,000 in 1980 to 600,000 in 2011.
By the end of 2011, 4,752 foreigners had received permanent residence cards, or the Chinese equivalent of a green card.
"The important thing for China is to set standards for foreigners in terms of educational attainment, occupation, salary and other aspects, just as developed countries do," said NPC deputy Ma Li.
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