That is a bit ambiguous, but it seems to be more of a reporting requirement and not the same thing. Anyways, even us expats are effected by it if we stay for more than 5 years without a 1 month break.
I've been in China for fifteen years, and haven't filed taxes for the past twelve, I think. I'm moving back to the States at the end of this year, and am deeply worried about integrating myself back into the good graces of the IRS.
There are actually only two countries that do it - the US and Eritrea.