China has relaxed its restrictions on preliminary expense remittance in outbound direct investment projects, as part of its reform efforts to facilitate cross-border investment, the State Administration of Foreign Exchange said.
SAFE said on Friday it has recently released a circular that includes nine policy measures aimed at deepening reforms to facilitate cross-border trade and investment.
The circular removes the restriction that the cumulative remittance of preliminary expenses for outbound direct investment by a domestic enterprise should not exceed the equivalent of $3 million. It instead stipulates that the cumulative remittance should not exceed 15 percent of the total intended investment by the Chinese enterprise.
Meanwhile, the circular includes measures to facilitate foreign-invested enterprises' foreign exchange receipts and payments and add technology-focused small and medium-sized enterprises into the pilot scheme for cross-border financing facilitation.