China announced Wednesday eased rules on foreign exchange settlement and purchases amid efforts to support cross-border e-commerce and other new trade industries. On May 20, the State Administration of Foreign Exchange (SAFE) released the Notice of Supporting New Industries of Foreign Trade to facilitate foreign exchange settlement and purchases and support the industries' development.
For forex management, the policies will cover five aspects according to the notice:
Facilitate forex settlement of cross-border e-commerce entities
Optimize measures of related tax prepayments
Meet the individual needs of foreign trade settlement
Improve fund settlement under the Market Purchase Trade mode
Support foreign trade service enterprises to handle the export collection
Banks are allowed to offer forex settlement services for market entities of cross-border e-commerce and other new trade industries upon provision of relevant electronic transaction information, according to a guideline released by the SAFE. With relevant certificates or electronic transaction information, foreign exchange settlement and purchases are allowed for individual market entities of international e-commerce, without taking up their annual foreign exchange purchase quotas.
The rules, with immediate effects, aimed to ease foreign exchange-relevant policies, improve services and streamline procedures to support new industries of foreign trade, said the administration's spokesperson Wang Chunying. This came after the administration announced last month to streamline or ease some rules to facilitate cross-border trade and investment, part of the country's efforts to boost trade as the COVID-19 pandemic hobbles global demand and weighs on trade growth. More favorable policies are coming. China will further stabilize foreign trade and actively leverage the role of foreign capital, according to a government work report submitted to the national legislature for deliberation on Friday. China will significantly shorten its negative list for foreign investment, while a negative list will also be drawn up for cross-border trade in services. Also, the government will further widen services market access to foreign investors, establish and expand new pilot free trade zones and integrated bonded areas. Specializing in providing business services for foreign trade-related enterprises, HACOS Business Services can help you do business and collect money without any worries. If you want to know more about forex settlement and market purchase trade (1039), please feel free to contact us!
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