Foreign exchange rules further simplified for foreign direct investment in China
By John Shi, Amber Tang and David Xu
On 11 May 2013, the State Administration of Foreign Exchange (SAFE) of the People’s Republic of China (PRC) released the Provisions on Foreign Exchange Administration of Inbound Direct Investment by Foreign Investors (SAFE Circular 21), which entered into effect on 13 May 2013. This is another important piece of SAFE regulation related to foreign direct investment (FDI) in China. It’s a further step to simplify and streamline foreign exchange administration regimes. It cancelled 24 FDI-related foreign exchange regulations. The attached Operating Guidelines and Specifications on Matters Relating to Inbound Direct Investment Business provide detailed instructions.
Article 3 of SAFE Circular 21 expressly provides that foreign exchange matters of FDI activities are only subject to registration regime (in contrast with the verification-oriented regime prior to SAFE Circular 59 1). Similar to SAFE Circular 59, SAFE Circular 21 abolishes various SAFE approval/verification requirements on foreign exchange procedures and lists out the matters requiring SAFE registration in a more streamlined and unified way…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The interpretation of the scope of application of the investor’s right to withdraw from any contracts for the placement of door-to-door financial products has again captured the attention of all players.
Tax Newsletter — July/August 2014: SAT strengthens reporting request under China CFC rules; and more
DLA Piper has released the July/August edition of its Tax Newsletter, which provides a review of PRC and Hong Kong tax developments.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions