Foreigners must obtain work permits and residence certificates for employment before being employed, the draft says.
It shall be considered as illegal employment if a foreign student works beyond the time limit or scope of their work-study program, according to the draft rules.
The 61-article draft was released by the Legislative Affairs Office of the State Council at www.chinalaw.gov.cn to solicit public opinions until June 3.
It shall also be considered illegal if foreigners remain in the country beyond their visa-free stay period or leave areas they have been allowed to stay in, the draft says.
Foreigners who violate China’s laws and regulations and are deemed “unsuitable” to stay will be given an exit deadline of no more than 30 days, according to the draft.
Foreigners who use forged or altered official certificates to enter or exit the country will be given a warning and could be fined up to 2,000 yuan ($325), it says.
The number of foreigners entering China has been increasing by 10 percent annually since 2000. Their identities and work are more diverse than ever, according to the Ministry of Public Security.
The number of foreigners employed in China rose from 74,000 in 2000 to 220,000 by 2011. Many work as employees of foreign companies, teachers or representatives of foreign organizations, the ministry said.