"China has a vast domestic market, yet is also deeply integrated into the global economy. The new rules speed up the equity transactions between Chinese businesses and foreign investors. Under the new rules, the channels, types of domestic credit assets, and scope of persons able to participate in the overseas transfer will be expanded in the pilot area within the Hainan Province and the Guangdong-Hong Kong-Macao Greater Bay Area.Foreign investors will now be able to carry out cross-border transfers of non-performing assets and can use foreign capital to directly participate in China’s non-performing asset market – changes that will undoubtedly enrich the investment channel available to them. BEIJING, Oct. 23 (Xinhua) -- China will introduce more measures to better facilitate cross-border trade and investment, including improving foreign exchange management and further streamlining regulatory requirements with a view to attracting foreign investors with a more enabling business environment. All countries have these various tax rates depending on the product. The non-financial enterprises can borrow the foreign debts within the registered amount and handle the procedures for remitting the funds with the bank directly, replacing the old rule of case-by-case registration with SAFE for each loan. China is the major rice export market for Myanmar. On February 2017, a pilot project for cross-border labor cooperation was launched in Dongxing, allowing for a greater influx of Vietnamese to work in Guangxi. Prior to these new rules foreign investment enterprises not engaging in investment activities could only make new equity investment in other enterprises with retained profit, which limited further investment to be made in China where the enterprise was short on cash or retained profit. If businesses choose not to open such an account, the income arising from trade in goods will be subject to bank review, and then be able to have direct access to the foreign exchange account. The China International Import Expo (CIIE), a government-backed trade fair, was held Nov. 5 – 10 to promote cross-border e-commerce amid a bruising trade war and global pandemic. Cross-border eCommerce in China allows international companies to sell goods to Chinese consumers online through platforms such as Alibaba’s Tmall Global and Kaola. On March 15, the Chinese side of the cooperation center began to resume operations. Xu Zhixian is the manager of a duty-free shop in the center. Since 2014, customs has regularly introduced new trade supervision methods, exploring innovative ways to help the industry develop in a well-regulated and systematic way. Between 2016 and 2018, China’s score of Trade Across Borders was stagnant at 69.91. Statistics from the State Administration of Foreign Exchanges on October 6 show that China's foreign exchange reserves stood at 3.0924 trillion U.S. dollars by the end of September, up by 0.6 percent from the beginning of this year. However, transit trade value with China expanded during the first five months of 2020 at 90.74 billion baht, up 15.74 per cent year-on-year. Most Pakistani traders in Xinjiang cannot afford to ship containers through the Khunjerab Pass and rather carry the goods purchased in China with them on the daily buses to Sost, Pakistan, thus avoiding customs duties. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. Enterprises may now be under an even stricter scanner with initial transactions subject to more detailed investigation from the bank before a trusted relationship is built between the bank and the enterprises. Automation in the professional services segment – the use of information technology to automate basic busine... Dezan Shira & Associates helps In addition, the following measures will be implemented to facilitate the foreign exchange receipts and payment for goods trade: These measures were previously piloted in Shanghai, Zhejiang, and Guangdong-Hong Kong-Macau Greater Bay Area, but now will be extended to all provinces in the country. However, under the new rules, banks will also focus on the authentication of the transaction and compliance requirements. Product Description. Please contact info@dezshira.com or visit our website at www.dezshira.com. Measures on keeping foreign trade stable were adopted at the meeting. Cross-border eCommerce in China allows international companies to sell goods to Chinese consumers online through platforms such as Alibaba’s Tmall Global and Kaola. Cross-Border E-Commerce Trade. Similar to tariff. Registration for writing off companies' borrowings from foreign lenders will be delegated to banks. Foreign firms engaged in non-investment businesses will be allowed to make equity investments on the mainland with their capital funds. According to statistics released by the General Administration of Customs in October, China's foreign trade maintained steady performance in the first three quarters of this year. In this case an overseas legal entity imports the goods directly into China. For Tmall Global, specifically, more than 80% of the brands that we currently sell made their China debut on the platform. Cross-border e-commerce in China has grown steadily in recent years, on the back of strong consumer demand for premium brands and high-quality overseas products. Cross-border, on the other hand, is defined as the direct import of goods from outside China through special cross-border e-commerce platforms and the preferential policies of special economic zones or warehouses (free trade zones). Trade between the Pingtan Comprehensive Experimental Zone and Taiwan has continued smoothly, increasing 67 percent year­on­year in terms of package volume. A significant part of China-Pakistan cross-border trade falls within the category of shadow economy. At present, this pilot scheme has been carried out in 12 free trade zones, and several provinces and cities, such as Fujian, Zhejiang, Jiangsu, Shenzhen. Under the new rules, enterprises can decide whether to open a to-be-verified account for export earnings. Cross-border e-commerce trade has been flourishing in China, with turnover rising 80.6 percent from a year earlier to 90.24 billion yuan last year. Post was not sent - check your email addresses! The firm assists foreign investors throughout Asia and maintains offices in China, Hong Kong, Indonesia, Singapore, Russia, and Vietnam. New zones will be developed to facilitate innovation in imports. Banks operating in the Lingang New Area may directly handle RMB settlement in cross-border trade. co-released the updated version of “Positive List for Commodities Traded through Cross-Border E-Commerce (2018)”, under which 63 new items categories were added to the positive list for cross-border trade… It is also a principle that we've long followed," Li said. Eligible enterprises in the pilot area can use capital fund, foreign debt, and funds raised by overseas listing for domestic payment without providing supporting documents to the bank to prove the authenticity of the transaction on case-by-case basis before the foreign exchange settlement. Now when the domestic equity transferor receives the consideration for the equity transfer of the foreign investor, it can directly handle the procedures of account opening, capital remittance, and settlement in the bank with the relevant business registration certificate. China will set up 46 new integrated pilot zones for cross-border e-commerce, as well as support processing trade with new steps and hold the Canton Fair online to keep foreign trade … According to the announcement, restrictions placed upon the use of foreign exchange settlement in the domestic asset realization account will be removed. HKMA and Bank of Thailand started a research project in the last quarter of 2019 on the application of digital fiat currencies for cross-border trade settlement. As incomes in the country have risen, so has the demand for imported goods. The general principle is to maintain a macro-prudential policy while enhancing micro regulation," Li said. What is important now is that the many policies that have been introduced will be fully delivered, in an effort to achieve the goal we set early this year of ensuring the steady growth and raising the quality of foreign trade," Li said. Trade volume of China's export cross-border e-commerce players 2011-2019 Maternal and baby product online shopper share in China 2015, by gender Most common e-commerce issues across MENA 2014-2016 It was decided at the meeting that the pilot reform of foreign exchange receipts and payments facilitation will be expanded. Yet it has been fairly unregulated in many aspects. Procedures of receipts and payments of relevant funds will be simplified for micro and small cross-border e-commerce companies. There are 3 kinds of taxes here: Taxes: This is the “variable” taxes that the government puts on the goods. "There is a trend towards more direct shipping out of China through digital cross-border shopping channels, which helps alleviate some of the downtrend in Chinese exports driven by the trade … The Alataw Pass, a major rail port at the China-Kazakhstan border in Xinjiang, has shown great market potential in cross-border e-commerce trade since the business was launched in January. In France, cross border purchases are the fastest growing ecommerce segment with nearly half of all French consumers buying from cross border merchant. The reporting processes on foreign exchange businesses for trade in goods will be improved. This is crucial for the overall stability of the macro economy. Trade between the Pingtan Comprehensive Experimental Zone and Taiwan has continued smoothly, increasing 67 percent year­on­year in terms of package volume. China’s crackdown on daigou is part of its moves to strengthen e-commerce regulation and better control the rapidly expanding sector. The cross-border RMB income obtained from foreign direct investment (FDI), cross-border financing, and overseas listing may also be directly used for payment within China. China’s new foreign exchange measures will ease financing controls on cross-border trade and investment activities to create a better business environment for domestic enterprises and overseas investors. Cross-border e-commerce in China has grown steadily in recent years, on the back of strong consumer demand for premium brands and high-quality overseas products. Trade volume of China's export cross-border e-commerce players 2011-2019 Number of cross-border online shoppers in China 2016-2020 Growth rate of cross-border online shoppers in China … "It is important to keep foreign trade and investment stable under the current situation by taking further steps in opening-up," Li said. Enterprises will make their own decisions on whether or not to set up verification accounts. "E-commerce trade volume reached about 1 billion yuan between January and September. While tit-for-tat tariffs risk an all-out trade war between the U.S. and China (see footnote 1), trade "skirmishes" have sprung up in foreign investment. BEIJING, Nov. 4 (Xinhua) -- Chinese President Xi Jinping said Wednesday that the country will introduce a negative list for cross-border services trade. Small and micro cross-border e-commerce enterprises that handle the collection or payment of foreign exchange of trade of goods less than US$200,000 accumulated per year, are exempt from the registration of “list of enterprises engaged in foreign exchange trade receipt and expenditure.”. China's cross-border e-commerce market has grown remarkably since 2014, with the import proportion of total e-commerce sales soaring to 10.2% in 2017 from 1.6% in 2014. The cross-border import value was worth 218.63 billion baht, down 10.7 per cent. Pilot programs will be carried out where registration for each foreign borrowing is no longer required. Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. Imports and exports totaled 22.91 trillion yuan (about 3.24 U.S. dollars), up by 2.8 percent year-on-year. Myanmar mainly exports beans and pulses, sesame, maize, rubber, and marine products to China while pesticides, fertilizers, household items, and foodstuff are imported into the country through Muse border trade camp. More efforts will be made to develop a network of high-standard free trade areas, foster new forms of industry in foreign trade, and set up another group of comprehensive pilot zones for cross-border e-commerce. China’s foreign exchange control regime concerns all cross-border transactions to a greater or less extent and often plays an important role in driving transaction structures and financing arrangements for … Eligible enterprises may open multiple foreign exchange capital accounts, according to their actual business needs, but the number of accounts opened shall meet the requirements of prudential supervision. The Alataw Pass, a major rail port at the China-Kazakhstan border in Xinjiang, has shown great market potential in cross-border e-commerce trade since the business was launched in January. Previous Article « How to Stay Compliant under China’s New Foreign Investment Law, Next Article How to Use China’s Negative Lists and Foreign Investment Encouraged Catalogue ». 010020070750000000000000011102351384971941. Cross-border trade and FOREX. The reform will expand the scope of the pilot scheme to cover six new free trade zones established in 2019 and the whole jurisdiction of Shanghai. Cross­border # trade in Pingtan, Fujian province, has experienced double­digit growth despite the # COVID_ ­19. China's ambassador to the U.S. expects new momentum for China-U.S. relations in 2021 Nov 06,2020 Trump Seeks to Intervene as States Join Texas Election Suit Nov 06,2020. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. US-China cross-border investments hit 5-year low as decoupling deepens amid trade war Investment between the US and China plunged 18 per cent to … Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. The consumer base for imported goods via cross-border e-commerce has also expanded rapidly. There will also be an easing of restrictions surrounding the use of foreign investors’ deposit account. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. The new rules reduce the processing time of transactions using the capital fund as it is no longer necessary to provide information before the settlement of the capital. Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. Bank of China Ltd London Branch provides various types of cross-border RMB products and RMB trade finance products, such as Letters of Credit, Documentary Collection, Telegraphic Transfer, Letter of Guarantee and so on. It also further simplifies the use efficiency of foreign exchange funds as deposit and reduces the capital occupation of foreign investors. Stay Ahead of the curve in Emerging Asia. The cross-border import value was worth 218.63 billion baht, down 10.7 per cent. Business reports, such as trade credit and trade financing, can now be handled online through the foreign exchange monitoring system for trade of goods, without the need to report to the local foreign exchange bureau on site (except for certain special business). China’s leaders emphasize the importance of increasing imports to facilitate both internal and external rebalancing. Find useful cross border trade resources, or cross border trade information about global business and trade on Made-in-China.com. Project contractors will be allowed to put their overseas funds under unified management. RMB internationalization accelerated in 2009 when China established the dim sum bond market and expanded Cross-Border Trade RMB Settlement Pilot Project, which helps establish pools of offshore RMB liquidity. In 2018, 13 ministries and commissions of China including CFDA, MOF, GAC, etc. To stimulate imports and consumption, Beijing tested a series of policies, starting in the Shanghai Free Trade Zone (FTZ) in 2015, to facilitate cross-border e-commerce trade. China to impose sanctions on U.S. officials over Hong Kong Nov 06,2020. This reform will give banks more flexibility in terms of the administrative formalities relating to foreign exchange. Foreign investors’ deposit fund can be used to make investment in China and make payments. The previous requirements to report to SAFE for foreign exchange transactions during the counseling period have now been removed. "Given the increasing complexity on global financial markets, it is important to guard against the risks in cross-border capital flows and maintain financial stability. The new rules therefore offer more flexibility in the investment structure for foreign investors. 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