The People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) have jointly released the Notice on Issues Concerning Supporting the Development of New Types of Offshore International Trade (hereinafter referred to as the Notice). The Notice is aimed at further improving trade liberalization and facilitation, and promoting the sound, sustainable and innovative development of new forms and models of foreign trade.
The Notice mainly covers the following three aspects. First, the PBC and the SAFE will pursue integrated management of RMB- and foreign currency-denominated funds for specific cross-border settlement to support new types of offshore international trade business that echo the needs for innovative development within the real economy. Second, they will encourage banks to improve internal management by implementing customer classification, optimizing self-audit, and upgrading services to facilitate cross-border fund settlement for new types of real and compliant offshore international trade. Third, they will strengthen risk monitoring and management to guard against risks of cross-border capital flows.
The Notice will come into effect on January 24, 2022. Following the requirements of the Guidelines of the General Office of the State Council on Accelerating the Development of New Forms and Models of Foreign Trade, the PBC and the SAFE will make steady progress in implementing the Notice, foster a business environment that is responsive to the development of new types of offshore international trade, and better serve the high-quality development of trade.
