China

China

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.