Neither do UAE or Hong Kong, and see how this ever stopped immigrants from making them immigrant-first economies. If anything, if you can successfully attract immigrants with a residency only, you get the best of both worlds.

Does it matter? If a permanent resident class exists (de facto is fine, if not legal), what would those folks be missing out on that citizenship would confer? You can’t legalize your way to cultural assimilation, and it’s not like the CCP would tolerate a meaningful vote.