Eased capital transfer policy for foreigners in Shanghai to woo foreign investment
01 Sep 2023
On 1 September 2023, a new capital control policy was implemented, which allows expatriates working for foreign enterprises in the Shanghai free trade zone — including those from Hong Kong, Macao, and Taiwan, Province of China — to transfer their income abroad without restrictions, as per the new rule. However, these funds must be both "real and legally compliant" and associated with their investments in China. In a parallel move, the Beijing Municipal Commerce Bureau has announced its support for unrestricted inward and outward remittances by foreign investors, as long as the capital transfers are actual, authorized, and related to investments.
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Type:
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Treatment and operation (Capital transfer and FOREX)
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Industry:
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Sources:
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Government of China, Beijing, Shanghai enhance foreign investment climate, https://english.www.gov.cn/news/202309/23/content_WS650e4ef4c6d0868f4e8dfb0a.html, 23 Sep 2023
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cnn, China relaxes capital controls to entice badly needed foreign investment, http://www.cnnphilippines.com/business/2023/9/22/china-relaxes-capital-controls-fdi.html, 22 Sep 2023
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bloomberg, China Relaxes Capital Controls in Top Cities to Woo Investors, https://www.bnnbloomberg.ca/china-relaxes-capital-controls-in-top-cities-to-woo-investors-1.1974759, 21 Sep 2023
