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China to further facilitate cross-border trade and investment

2019-10-24 13:09:45 Xinhua News Agency

China will introduce more measures to better facilitate cross-border trade and investment.

China will introduce more measures to better facilitate cross-border trade and investment, including improving foreign exchange management and further streamlining regulatory requirements with a view to attracting foreign investors with a more enabling business environment.

The decision was adopted on Wednesday at the State Council's executive meeting, chaired by Premier Li Keqiang.

Attendees at the Wednesday meeting agreed on 12 measures to boost cross-border trade and investment.

It was decided at the meeting that the pilot reform of foreign exchange receipts and payments facilitation will be expanded. Procedures of receipts and payments of relevant funds will be simplified for micro and small cross-border e-commerce companies.

The reporting processes on foreign exchange businesses for trade in goods will be improved. Enterprises will make their own decisions on whether or not to set up verification accounts.

Registration for the list of foreign exchange receipts and payments for trade will be facilitated for enterprises and their subsidiaries. Project contractors will be allowed to put their overseas funds under unified management.

"It is important to keep foreign trade and investment stable under the current situation by taking further steps in opening-up," Li said.

Foreign firms engaged in non-investment businesses will be allowed to make equity investments on the mainland with their capital funds. The pilot program that facilitates revenue payments under capital accounts will be expanded.

Registration for writing off companies' borrowings from foreign lenders will be delegated to banks. Pilot programs will be carried out where registration for each foreign borrowing is no longer required.

Limits on the number of foreign currency accounts under capital accounts will be removed, to facilitate foreign exchange settlement under certain capital accounts.

"Given the increasing complexity on global financial markets, it is important to guard against the risks in cross-border capital flows and maintain financial stability. The general principle is to maintain a macro-prudential policy while enhancing micro regulation," Li said.