(ATF) – China’s foreign exchange regulator said on Tuesday that it will streamline or ease some rules to facilitate cross-border trade and investment.
Under the new rules, eligible companies will be able to use capital they have raised overseas for domestic payments without providing relevant certificates beforehand, the State Administration of Foreign Exchange (SAFE) said on its website.
This comes as the COVID-19 pandemic wreaks havoc on the global economy and dims the growth prospects of global trade and investment.
SAFE eased rules to allow export companies to purchase foreign exchange for the repayment of their foreign currency loans onshore.
Previously, export companies had to use foreign exchange they reserved or proceeds from their exports to repay such loans.
The administration also encouraged banks to support export-oriented small businesses by extending their foreign currency loans and streamlining application procedures.
The Ministry of Commerce (MOC) earlier in the week signed a memorandum of understanding with Industrial and Commercial Bank of China (ICBC) to help foreign trade and foreign-invested firms counter the impact of the coronavirus epidemic.
Under the deal, the country’s biggest commercial lender, will step up credit support and offer its one-stop cross-border services, which integrate clearing, trading and financing functions, to help firms stabilise their operation while improving efficiency.