The Chongqing Municipal Development and Reform Commission recently issued “Certain Measures to Encourage Foreign-Invested Enterprises to Reinvest in China”, which proposes 16 policy measures in three dimensions: guiding foreign investment, facilitating investment and operation, and raising the level of protection in accordance with the principle of unity of domestic and foreign investment. The “Measures” suggest that foreign-invested enterprises are supported to use foreign exchange profits lawfully generated domestically and foreign investors to reinvest domestically with foreign exchange profits lawfully obtained domestically. The relevant foreign exchange funds can be transferred to the capital account of the invested enterprise or the capital project settlement account of the equity transferor, and the use of funds shall be handled in accordance with relevant account management requirements. On the premise that it complies with the special administrative measures for foreign investment access and that domestic investment projects are real and compliant, foreign-invested enterprises carry out domestic reinvestment with foreign exchange capital and RMB funds obtained from remittance. The invested enterprise or equity transferor does not need to register to receive basic domestic reinvestment information or change registration, and domestic reinvestment funds can be directly transferred to the relevant account. Banks are encouraged to optimize foreign exchange business processes such as foreign exchange registration, account opening, and fund payment, and improve service efficiency.

The Chongqing Municipal Development and Reform Commission recently issued “Certain Measures to Encourage Foreign-Invested Enterprises to Reinvest in China”, which proposes 16 policy measures in three dimensions: guiding foreign investment, facilitating investment and operation, and raising the level of protection in accordance with the principle of unity of domestic and foreign investment. The “Measures” suggest that foreign-invested enterprises are supported to use foreign exchange profits lawfully generated domestically and foreign investors to reinvest domestically with foreign exchange profits lawfully obtained domestically. The relevant foreign exchange funds can be transferred to the capital account of the invested enterprise or the capital project settlement account of the equity transferor, and the use of funds shall be handled in accordance with relevant account management requirements. On the premise that it complies with the special administrative measures for foreign investment access and that domestic investment projects are real and compliant, foreign-invested enterprises carry out domestic reinvestment with foreign exchange capital and RMB funds obtained from remittance. The invested enterprise or equity transferor does not need to register to receive basic domestic reinvestment information or change registration, and domestic reinvestment funds can be directly transferred to the relevant account. Banks are encouraged to optimize foreign exchange business processes such as foreign exchange registration, account opening, and fund payment, and improve service efficiency.