"For the Chinese government, I think they need fingerprints to prevent criminal activity, however, I don't believe that a fingerprint can predict criminal intention and it is not cost-effective as the system needs money to monitor and for maintenance," the man, who requested anonymity, said.

James Lake, a 32-year-old Briton who had a work permit in Beijing, believes the draft is "intrusive".

"The government already has our information, and they don't need more from us. They should get the person's consent first," he said.

The Ministry of Public Security said that although the number of illegal aliens was generally "stable", it is essential to improve the "management and control system" for foreigners.

The draft also prevents foreign businessmen who do not pay wages from leaving the country.

Ye Jingyi, a labor law expert at Peking University, said the draft will help protect workers in foreign companies.

In the past two years, as the global financial crisis deepened, some foreign executives, especially in coastal regions such as Guangdong and Shandong provinces, fled without paying wages, she said.

"Such a regulation would be a warning to foreign employers that their freedom to leave the country would be restricted if they did not pay workers on time," Ye said.

"It's also good news for workers because the rule could help prevent foreign bosses from maliciously delaying wages."

Ye also pointed out that the country's law enforcement capability in labor protection has a manpower shortage.

The proposal also said foreigners undertaking a job without a work permit, or overseas students working longer than the allocated time, are defined as "illegal employees".

In addition, the proposal said foreigners being suspected of illegal entry, stay and/or employment, or those suspected of threatening national security or social order, can be detained for up to 60 days for investigation, if the case is "complicated".

Chen Xin and Zheng Xin in Beijing, and Li Xinzhu in Shanghai contributed to this story.