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Around the world, you鈥檇 think that countries would be fighting tooth and nail to attract the best and brightest tech minds into their economies.

But this week, the global talent race entered a new era. Just a few days ago, President Donald Trump announced that the H-1B visa would now cost employers $100,000 per application, versus the previous cost of $2,000 鈥� $5,000.

This created huge shockwaves across the US, as companies that previously relied on hiring skilled workers from abroad now have to take a closer look at local talent.

In response to this, China has launched its new K visa, opening the door to young foreign tech professionals just as the US closes it.

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The Changes To The H-1B Visa

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Just a couple of weeks ago, Donald Trump announced that new H-1B visa applications would now cost $100,000 per applicant, per year.

That is a huge difference from the previous fee, which was between $2-5,000.

For many years, the H-1B visa has been a go-to route for skilled workers from abroad, looking to tap into the US鈥檚 tech, medicine and engineering sectors. A huge chunk of talent came from India, with stats by the BBC reporting that Indians made up more than 70% of approved applicants in recent years, followed by China at 12% and the Philippines.

But the hike doesn鈥檛 just affect people 鈥� it affects companies too. SMEs and startups are unlikely to be able to afford these new fees and many are speculating that bigger enterprises will just move their workers offshore.

But whilst one door closes, another one opens.

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Meet China鈥檚 K Visa

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Launched this week, China announced its new K visa 鈥� one of the newest Chinese visas launched in over a decade. It specifically looks to draw in young graduates in science, technology, engineering and mathematics (STEM) and importantly, it doesn鈥檛 require a job offer or company sponsorship.

To qualify, applicants just need to have a bachelor鈥檚 degree from a recognised university, but otherwise the criteria is relatively broad.

The Chinese government has left the definition of what 鈥榶oung talent鈥� encompasses deliberately vague so that it has the flexibility to adjust criteria as it evolves.

Because the US system is capped at 85,000 and part of a lottery, this new K visa might become a more attractive alternative for highly skilled young workers who may have otherwise targeted the US.

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The Drawbacks Of The K Visa

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For all of its strengths, the K visa doesn鈥檛 come without its issues.

Some have argued that its vagueness actually works against it, as applicants are unable to see family sponsorship rights, pathways to permanent residency and more.

One of the other big issues is language. Many Chinese companies operate in Mandarin, making it harder for non-Chinese nationals to integrate. Others have questioned whether geopolitical relationships between China and India, which have been subject to moments of hostility over the years, may also affect visa demand.

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A Smart Strategy?

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It鈥檚 interest timing. As the US raises its walls, China lowers theirs.

And although the Chinese state media estimates that the country produces around 3.5 million to 3.6 million STEM graduates each year, having more talent within its borders helps position it as a global leader in innovation. (The Independent)

In fact, by drawing in so much international talent, it could become a much bigger player in tech, AI and biotech.

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The Global Talent War

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But China isn鈥檛 the only company that is looking at the new visa changes as an opportunity. Germany, South Korea and New Zealand have all made it easier for skilled migrants to move to their countries.

In the UK, law firm Irwin Mitchell recorded a surge of interest in the UK鈥檚 Global Talent visa since the H-1B announcement.

Meanwhile, universities in the US are worried about whether this will deter international students. Many of them choose the US because of the working opportunities afterwards. If this is taken away, those places might be left empty.

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Will The K Visa Boost China鈥檚 Tech Economy?

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Only time will tell whether the K visa can become a true rival to the H-1B.

However in the short term, many will be watching closely to see whether the terms of the visa become any clearer.

For now though, one thing is for sure: the timing is telling. At the moment that the US makes getting a visa harder, China opens up.

So, what does this mean for the global race for tech talent? We will wait and see.