SAFE's New Rules On Foreign Debt Registrations

New rules on foreign debt registrations aim to clarify uncertainties in the Chinese foreign debt regime. The rules, published by the State Administration of Foreign Exchange (SAFE), aim to streamline SAFE's administration concerning foreign currency inflow and outflow.

The changes arise from, among others, SAFE's adoption of a new IT system, which allows it to be interconnected with systems of all banks in China. SAFE's new approach is to register a company's basic information in the centralised IT system, e.g. registered capital and total investment, and to have the other procedures handled by banks directly, e.g. opening a capital account, payment of contribution. As a result, SAFE will be less involved in routine registration of foreign debts, foreign direct investments (FDI) and outbound direct investments (ODI). The procedures handled by banks remain subject to other authorities' approvals, if applicable. More specifically, the main changes are: