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Just out of curiosity, why do you think that China should do this? The US Consulate in Hong Kong will only issue US Visas to HK residents. And the US doesn't issue visas on arrival. China is just bringing itself into line with world practice.
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Perhaps because they might want to appear as a progressive country that welcomes foreign investments, business people and travellers?
God knows the US and most European countries have given up on that friendly-to-travellers perception. However, Asian countries, given the proximity to each other and the nature of travel that happens regionally have traditionally been far more open to visitors just popping in and asking for a visa.
Then there is the issue of informing people of the changes. Once an expectation that you can get visas in Hong Kong has been set - people plan on getting that visa when they arrive here. Virtually most American / European colleagues of mine (when I used to work for the man..) planned on using HK as a base and then popping in and out of China.
If you've worked for a company that values training its employees to delivery consistent and predictable service - you'll know why its important to inform, train and then deliver a consistent response across the planet.
