Source: Global Times

[Lee Joon, special correspondent of the Global Times in the United States, special correspondent of the Global Times, Ren Zhongyu Jian] US President Trump signed an announcement on the 19th to increase the fee paid by enterprises for H-1B visa applicants to $100,000, saying that this move was aimed at ensuring that the United States introduced highly skilled talents who could not be replaced by Americans. Previously, H-1B visas usually cost thousands of dollars. This huge sum of money will have a direct impact on tech giants such as Amazon, Microsoft, Meta, and Google, which have been relying on the H-1B program to hire foreign employees, including software development engineers.

In the past weekend, U.S. companies were in chaos and urged to call back affected employees who were traveling abroad to assess the impact of policy adjustments. Though the White House gave further explanations on the specifics such as the applicable population of the new regulation on the 20th, it has been described as the whole policy is still ¡°everywhere questionable¡±. How long-term impact will the increase in H-1B visa fees have on U.S. corporate competitiveness, innovation and economic growth? U.S. public opinion is uncertain about the answer to this question. At the same time, the new regulation adds new questions to the recent cluttered U.S. and Indian relations: According to nationality, Indians are the most H-1B visa recipients last year, more than 70%.

At an international flight departing from San Francisco, news about the H-1B visa sparked panic among Indian passengers in the cabin.

Like "flying in the fog"

According to relevant regulations, the H-1B visa allows U.S. employers to hire foreign workers with professional skills if they don¡¯t find qualified U.S. employees. Holders can work in the U.S. for a maximum of 6 years. Now, the U.S. has a maximum of 85,000 new H-1B visas issued annually. Columbia Broadcasting Corporation (CBS) says technology companies have been the main beneficiaries of the visa program. Online retailer Amazon is the largest company to receive H-1B visas, with more than 10,000 this year. The New York Times says that according to an estimate earlier this year, the U.S. has about 730,000 H-1B visa holders.

According to Bloomberg, after Trump signed the announcement, Amazon, Google parent Alphabet, Microsoft and other companies warned H-1B visa holders abroad to return to the U.S. on the 20th, otherwise they could face obstacles to entry. According to the White House, the new regulations entered into force on the 21st. The U.S. Wall Street Journal described that a number of company human resource departments dispatched their employees lists to try to determine their location in order to help book flights when needed. The company¡¯s executives were communicating news throughout the night. One immigration lawyer said that one of his clients was on a cruise ship in international waters, and it was difficult to find flights to the U.S.

"Panic in the cabin." The Times of India said on the 21st that at San Francisco International Airport, several Indian passengers got off the plane a few minutes before departure for fear that they could not return after leaving the United States. The flight allegedly ended up being delayed for more than 3 hours. The British Broadcasting Corporation (BBC) described the experience of another Indian: in order to rush back to America from his hometown, he spent $8,000 on air tickets. Reuters said that on Chinese social media, a user called himself an "H-1B slave", interrupted his holiday in Tokyo and rushed back to the United States, as if he had experienced a "real version of The Fast and the Furious".

Photo by White House Press Secretary Caroline Levitt (video)

In a chaos, the U.S. government tried to clarify.According to CBS and other U.S. media reports, White House news secretary Levitt and other White House officials posted on 20th through social platforms or media that $100,000 was a one-off fee, and the new regulation does not apply to renewals or current visa holders, nor to applicants who participate in the lottery this year.On 19th, U.S. Commerce Secretary Lutnik said that $100,000 was an annual fee.The New York Times said that despite explanations, many companies remain cautious.

Probably the opposite.

The New York Times said the change meant a major reform in the U.S. H-1B visa issuance mechanism. The visa program was crucial for U.S. firms to fill vacancies in the technology industry and other fields, but has long been the core topic of U.S. immigration dispute. The hardships believe that the H-1B visa damages the interests of the U.S. indigenous people, but many company managers say that the H-1B visa helps U.S. firms stay competitive.

According to Reuters, Monroe Dars, a partner of U.S. venture capital firm, said on social media that the U.S. government¡¯s new decision ¡°will reduce the motivation to attract the world¡¯s smartest talent to the U.S.¡±, which will affect U.S. innovation and economic growth capabilities. The New York Times quoted analysts as saying that companies are expected to have to re-evaluate their overall attitude towards the H-1B visa program.

CBS quoted Anderson, executive director of the U.S. Policy National Foundation, as saying that if the new policy prompted the U.S. to move jobs overseas, especially in R&D-related positions, the move could be reversible.

Watson's clients, founder of Watson's immigration law firm in the United States, are mostly small businesses and start-ups. She told the BBC that this decision could be a "fatal blow" to many of her own customers, "who will almost be squeezed out by the high price". In addition, CNN mentioned that the new regulations may make it difficult for foreign employees to obtain junior positions in the United States.

India issued a warning

According to the BBC, by nationality, Indians were the most H-1B visas received last year, accounting for more than 70 percent, seconded by Chinese, accounting for 11.7 percent.BBC said that the Indian Ministry of Foreign Affairs warned on the 20th that the new H-1B visa application fee would cause ¡°interference¡± to the families concerned, leading to ¡°humanitarian consequences.¡± India¡¯s senior professional in science and technology health affairs, Duta, wrote on his social platform on the 21st that the U.S. government could not abolish the H-1B visa program without Congress¡¯s consent, so it turned it into a ¡°economic coercion weapon.¡±

After U.S. Working Visa Application Fee Rises to $100,000, a large number of Indian employees buy flight tickets back to the U.S. (data map)

According to the Eurasia Review website, the $100,000 H-1B visa fee is a shocking warning call to remind people that the global technology and immigration pattern has changed significantly, while for others, it is a predictable continuation of Trump¡¯s ¡°America Priority¡± promise. The United States remains open to high-skilled talent, but only to those who are skilled and irreplaceable, the ¡°Golden Card¡± policy reflects this re-calibration.

The "Golden Card" is another executive order signed by Trump on the 19th: individuals who pay $1 million to the U.S. Treasury Department or pay $2 million sponsored by enterprises can obtain visa treatment for accelerated approval through the "Golden Card" project.

According to Eurasia Review, the updated U.S. immigration policy will be intentional, selective and transactional in the process of implementation. Increasing the H-1B visa fee will have some impact globally. In India, it exposes the country¡¯s over-dependence on U.S. visa policy. For China, the impact is small. In the eyes of European countries and Canada, this may even be an opportunity to attract excellent professionals.