China has sharp response after Trump announces price increase of popular US visa from $1,500 to $100,000

China has issued a response after Donald Trump announced that the cost of a popular US visa would see a dramatic increase.

The H-1B visa in the US is a skilled worker visa, including in the tech industry and medicine, and allows companies to hire foreign workers in specialist roles.

It is popular in the tech sector, with Indians being the largest group of recipients of the visa and Chinese people the second largest group, according to the BBC.

Trump issued a shock announcement on Friday (September 19), confirming that the price of the visa would leap from $1,500 to $100,000.

The administration has said the enormous price hike is part of an effort to encourage firms to hire domestic workers instead of trying to attract international talent.

Now, China has issued a frosty response to the announcement.

Donald Trump has increased the cost to $100,000 (Anna Moneymaker/Getty Images)

Chinese foreign ministry spokesperson Guo Jiakun would not be drawn explicitly on the issue in a regular press briefing on September 22, but said that China 'welcomes outstanding talents'.

A translation of his remarks published in the Chinese state-run Global Times said: "In the era of globalization, the cross-border flow of talent has driven technological progress and economic development worldwide."

He added: "China welcomes outstanding talents from all industries and fields globally to come to China, take root in China, and jointly promote the continuous progress of human society while achieving personal career development."

People moving to the US from China represent the second-largest group of recipients of the H-1B visa by nationality, making up around 12 percent of recipients.

However, people coming from India are overwhelmingly the largest group, making up some 70 percent of recipients of the visa.

President of China Xi Jinping (Lintao Zhang/Getty Images)

The increase in the visa price has been called a 'direct attack' on Indians moving to the US for work and study.

Founder of the North American Association of Indian Students Sudhanshu Kaushik told the BBC: "It felt like a direct attack, because the fees are already paid, so there's a big sunk cost of anywhere between $50,000 and $100,000 per student - and the most lucrative route to entering the American workforce has now been obliterated."

The proposals have also been criticised by business analysts, who argue that the increased cost and rising demand for labour may see US companies attempt to outsource their work to other countries rather than sponsoring international workers to come work for them in the US.

H-1B is a frequent target for anti-immigration groups, who argue that it 'undercuts' American workers.