China Issues Draft Rules to Fuel Cross-Border Trade and Investment

What’s new: China’s top foreign exchange regulator is soliciting public comment on a draft notice to further overhaul regulations promoting cross-border trade and investment.

To facilitate more cross-border trade and investment, the State Administration of Foreign Exchange (SAFE) proposed three policy measures. They are expansion of a trial program to provide cross-border financing; relaxation of the size limit on pre-investment cost remittances for overseas direct investment; and promotion of the use of funds from equity transfers under domestic reinvestment of foreign direct investment and proceeds from overseas IPOs.