Shanghai restricts business visas over Olympics

BEIJING (Reuters) - China's financial hub, Shanghai, is restricting the issue of business visas, underlining the lengths to which authorities are going to keep out unwanted foreigners ahead of the Beijing Olympics.

Business groups have already complained about tightened visa policies ahead of the August Games, which have included a ban on citizens of 33 countries applying for Chinese visas in Hong Kong.

The Shanghai Foreign Economic Relations and Trade Commission said it will postpone approval of notification letters needed for business visas till mid September for all but essential travel, ruling out visits to carry out inspections, market research and training.

The South China Morning Post on Thursday cited unnamed sources as saying that authorities in Beijing also have similar curbs, as have Qingdao, Shenyang and Qinhuangdao -- all of which will host some Olympic events.

Foreigners coming to Shanghai on important business before then need to get the Chinese organization that is inviting them to give detailed supporting documentation, the city commission said in a notice posted on its website.

"At the same time, (they) should try their best to limit the number of people coming and the amount of time they spend in Shanghai," the commission said.

It said the curbs were being introduced on orders from above and were meant to "ensure the smooth hosting of the Olympics and safeguard the city's social stability during the Olympics".

Beijing has defended itself against criticism over its tighter visa policies, saying they are necessary to ensure security during the Games and keep "hostile forces" out of the country.

But business consultants say the restrictions are starting to hurt exporters, which in some cases are unable to finalize contracts because their clients' inspectors are unable to get into the country.

(Reporting by Jason Subler; Editing by Alan Wheatley)