A great deal has been written and discussed on various forums about the so-called "Chinese Green Card." Essentially, what this amounts to is either a 5-year (for a minor child) or 10-year (for adults) residency permit, which is automatically renewable barring any reasons for it not to be.
Foreign teachers may apply for "permanent residency" if they have held the rank of associate professor or above at a key university for a minimum of four years and it can be demonstrated that they have made a "great and outstanding contribution" to and are "specially needed" by China (see articles 6 and 8 below). However, we are aware of at least two foreigners—who are not career academicians with advanced degrees at key universities—who have received the Chinese Green Card for otherwise having distinguished themselves in their communities (in both cases, they were recipients of China's national Friendship Award (see sidebar).
Technically speaking, foreign teachers who have been married to a Chinese national for a minimum of five years are also eligible for permanent residency but we are aware of only one foreigner who received a long-term residency permit on this basis alone. In the vast majority of cases, a perpetually renewable three-month tourist (L-) visa seems to be what is typically issued.
For your convenience and edification, the regulation has been attached below in its entirety.

Order of the Ministry of Public Security and the Ministry of Foreign Affairs
No.74
Measures for the Administration of Examination and Approval of Foreigners' Permanent Residence in China
adopted by the State Council on December 13, 2003, are hereby promulgated and carried out.
Minister of the Ministry of Public Security, Zhou Yongkang
Minister of the Ministry of Foreign Affairs, Li Zhaoxing
August 15, 2004
In order to standardize the examination and approval of foreigners' permanent residence in China, these Measures are formulated in accordance with the relevant provisions of the Law of the People's Republic of China on Control of Entry and Exit of Foreigners and the Detailed Rules for its implementation.
Foreigners' permanent residence in China refers to that the period of foreigners' residence in China is not limited.
The Foreigner's Permanent Residence Card is a valid ID certificate for a foreigner who has obtained permanent residence status in China and may be used independently.
A foreigner with permanent residence status in China may enter and leave China with his valid passport and Foreigner's Permanent Residence Card.
The authorities to accept the applications of foreigners for permanent residence in China are the public security organs of the people's governments of cities with subordinate districts and the public security branch bureaus and county-level bureaus of municipalities directly under the Central Government. The authorities to examine foreigners' applications for permanent residence in China are the departments and bureaus of public security of provinces, autonomous regions and municipalities directly under the Central Government. The authority to examine and approve foreigners' applications for permanent residence in China is the Ministry of Public Security.
Foreigners applying for permanent residence in China must abide by Chinese laws, be in good health and without any criminal record, and must meet at least one of the following requirements:
The periods of time in this Article mean the successive ones till the date of application.
In the case of a foreigner under item (1) of the first paragraph of Article 6 herein, the registered capital paid by him as investment in China shall meet any of the following requirements:
In the case of a foreigner under item (2) of the first paragraph of Article 6 herein, the entity in which he holds a post must be any of the following:
The applicant shall faithfully fill in the Form of Application for Foreigner's Permanent Residence in China and submit the following materials:
An applicant under Item (1) of the first paragraph of Article 6 herein shall submit a certificate of approval for the foreign-invested enterprise, certificate of registration and a joint annual inspection certificate, report on the verification capital and personal tax payment receipt in addition.
In the case of a foreign-invested enterprise in encouraged fields, a letter of confirmation in respect of the foreign-invested project as encouraged by the state shall be submitted in addition.
An applicant under Item (2) of the first paragraph of Article 6 herein shall submit the following materials in addition:
An applicant under Item (3) of the first paragraph of Article 6 herein shall submit a letter of recommendation and the relevant certificates as issued by the competent authority of the Chinese government in addition.
An applicant under Item (4) of the first paragraph of Article 6 herein shall, in addition, submit a marriage certificate in the case of a spouse, his birth certificate or parentage certificate in the case of an unmarried child under 18 years old, and a adoption certificate in the case of an adopted child. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.
An applicant under Item (5) of the first paragraph of Article 6 herein shall, in addition, submit his (her) Chinese spouse's registered permanent residence certificate or foreign spouse's Foreigner's Permanent Residence Card, marriage certificate, and a notarized certificate of source of subsistence and house leasing certificate or muniments of title. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.
An applicant under Item (6) of the first paragraph of Article 6 herein shall, in addition, submit his Chinese parent's registered permanent residence certificate or foreign parent's Foreigner's Permanent Resident Card, his birth certificate or parentage certificate and, in the case of an adopted child, the adoption certificate in addition. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.
An applicant under Item (7) of the first paragraph of Article 6 herein shall, in addition, submit the registered permanent residence certificate of the Chinese citizen, or the Foreigner's Permanent Residence Card of the foreigner, to whom he is to turn, a notarized certificate of kindred and a certificate certifying that the applicant has no direct relative abroad, a notarized certificate certifying the applicant's financial source or notarized certificate of financial guarantee by the person to whom the applicant is to turn, and notarized house leasing certificate or muniments of title of the applicant or the person to whom the applicant is to turn. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.
An application for foreigner's permanent residence in China shall be submitted by the applicant himself or his parent if he is unmarried and under 18 years old or his attorney to the public security organ of the people's government of the city with subordinate districts, or the branch or county bureau of public security of the municipality directly under the Central Government, in the place where the principal investment was made or of long-term residence.
In the case of applying through an attorney, a power of attorney issued by the applicant shall be submitted. A power of attorney issued by the applicant abroad shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.
The public security organ shall make an approval or disapproval decision within six months from the date of the acceptance of the application.
The Ministry of Public Security shall issue a Foreigner's Permanent Residence Card to the applicant whose permanent residence status in China has been approved. If the applicant is not in China, the Ministry of Public Security shall issue a Confirmation Form of Foreigner's Permanent Residence Status to the applicant, who shall apply for a "D" visa to the Chinese embassy or consulate in the country concerned by producing such Conformation Form and, within 30 days from his entry into China, get the Foreigner's Permanent Residence Card from the public security organ that accepted his application.
A foreigner who has been approved to permanently reside in China must stay in China for at least three cumulative months a year. If the foreigner is unable to stay in China for such minimum period due to any reason, he shall apply for the approval of the department or bureau of public security of the province, autonomous region or municipality directly under the Central Government where he reside in, provided that the cumulative period of his residence in China shall not be less than one cumulative year in five years.
A Foreigner's Permanent Residence Card shall be valid for five or ten years.
In the case of a foreigner under 18 years old approved to permanently reside in China shall have a Foreigner's Permanent Residence Card valid for five years; those being or above 18 years old shall have one valid for ten years.
In the case of expiry of, any change of particulars in, damage to or loss of a Foreigner's Permanent Residence Card, the holder shall apply for renewal or reissue of the Card to the public security organ of the people's government of the city with subordinate districts, or the branch or county bureau of public security of the municipality directly under the Central Government in the place of his long-term residence. The public security organ shall make such renewal or reissue within one month if, upon examination, it holds that the holder still meets the requirements for a foreigner to be approved to permanently reside in China.
The holder of a Foreigner's Permanent Residence Card shall apply for a renewal of the Card within a month before the expiry of the old one, for a renewal within a month after any change of particulars in the Card, or for a renewal or reissue promptly in the case of any damage to or loss of the Card.
The Ministry of Public Security may cancel such status of him and withdraw or revoke his Foreigner's Permanent Residence Card in the case of a foreigner with permanent residence status in China under any of the following circumstances:
Foreigners who have been approved to permanently reside in China before the implementation of these Measures shall, within six months from the implementation, renew his Foreigner's Permanent Residence Card with the public security organ of the people's government of the city with subordinate districts or the branch and county bureau of public security of the municipality directly under the Central Government that issued the original Card or in the place of his long-term residence.
The items and rates of charge in respect of a foreigner's application for permanent residence status in China and the issue, renewal and reissue of a Foreigner's Permanent Residence Card shall conform to the relevant provisions of the departments of price control and finance of the State Council.
In these Measures:
The power to interpret these Measures shall be vested in the Ministry of Public Security and the Ministry of Foreign Affairs.
These Measures shall go into effect as of the date of promulgation.