BEIJING, Nov. 22 -- China's foreign exchange regulator will simplify procedures regarding the management of direct foreign investment in a bid to encourage trade.
According to new requirements, effective from December 17, as many as 49 procedures will be either canceled or simplified, the State Administration of Foreign Exchange (SAFE) announced Wednesday.
Canceled procedures include approvals for account opening, booking, foreign exchange payment and settlement, and those for cross-border transfers under conventional business. Also, approvals for re-investment of legally acquired funds by foreign investors in China will be canceled.
Types of direct foreign investment accounts will be reduced. Also, registration and validation procedures will be simplified. In addition, restrictions on flows of funds under direct foreign investment accounts will be loosened, the SAFE said.
An official from the SAFE said a total of 35 approval procedures will be canceled and 14 will be simplified. The adjustment will help reduce companies' costs and improve efficiencies to serve the real economy.