Legal Insights

< back to search results

Going global: China further relaxes foreign exchange controls over direct investment


In late November, China's State Administration of Foreign Exchange promulgated a new circular which aims to dramatically simplify foreign exchange administration procedures concerning inbound and outbound direct investment. The circular is both a response to a fall 2012 directive to reduce administrative approvals and also reflects a trend of relaxing foreign exchange supervision given China's accumulation of major foreign exchange reserves.

The circular, which became effective on 17 December 17 2012, is expected to have a significant impact on foreign direct investment and outbound investment by domestic enterprises and help domestic enterprises pursue a "Go Global" strategy.

For more up-to-date news and briefings from King & Wood, visit