How To Navigate Cross-border Foreign Currency Exchange In China

Foreign-invested entities ("FIE") in China often encounter several issues in cross-border foreign currency exchange ("foreign exchange"). Unlike other jurisdictions where the number of foreign currency exchange transactions and amount is unlimited, entities and individuals in China are strictly provisioned to adhere to the relevant laws, rules, and regulations. Otherwise, the corresponding government body or financial institution ("FI") can refuse to administrate the foreign exchange.

The State Administration of Foreign Exchange ("SAFE") is the governing government body administrating foreign exchange. For FIE, foreign exchange can be a minefield without the right expertise. In the below, we highlight the main points to navigate FIE in conducting transactions efficiently.