ISSUING AUTHORITY:

State Administration of Foreign Exchange

DATE OF ISSUANCE:

July 24, 2023

EFFECTIVE DATE:

July 24, 2023

On July 24, 2023, State Administration of Foreign Exchange is soliciting public comments on the Notification on Further Deepening Reform to Facilitate Cross-Border Trade and Investment (Draft for Comments) (the “Notification”), with a deadline of August 2, 2023 for comments.

The policies proposed in the Notification include 10 items in three aspects. The first is to improve the opening-up policy for cross-border trade, including optimizing foreign exchange administration of market procurement trade, relaxing netting settlement of balance of payments for processing trade, improving collection and payment of cross-border trade capital under agency, and facilitating settlement of foreign exchange capital of operating lease of domestic entities. The second is to increase measures for facilitating capital accounts, including formulating policies for facilitating cross-border financing of technology-based SMEs, relaxing upfront fee limits for ODI, facilitating payment and utilization of equity transfer funds and funds raised from overseas listing under domestic reinvestment of FDI. The third is to optimize administrative measures for foreign exchange of capital accounts, including improving administration of negative list of use of income of capital accounts, canceling approval for opening of foreign debt accounts in different places, and simplifying certain accounts under capital accounts.

Reference:

《关于《国家外汇管理局关于进一步深化改革促进跨境贸易投资便利化的通知（征求意见稿）》公开征求意见的通知》