SAFE Proposes Further Facilitation of Forex Fund Settlement to Support Stable Development of Foreign Trade

Recently, the State Administration of Foreign Exchange (SAFE) has drafted the Circular on Further Facilitating the Settlement of Foreign Exchange Funds to Support the Stable Development of Foreign Trade (Draft for Comment) (the "Draft") and is now soliciting public comments. The deadline for submitting comments is October 5, 2025.

The Draft sets out nine policy measures in two areas: one focuses on expanding and improving existing facilitation policies, while the other seeks to optimize and refine current regulations on trade-related foreign exchange (forex) administration. Notably, the Draft proposes expanding the scope of pilot regions for high standard opening-up of cross-border trade, intending to implement such pilot policies in more regions where there is genuine demand, sufficient regulatory capacity, and alignment with national development strategies. In addition, the Draft broadens the types of netting settlement businesses under the pilot program for high standard opening-up of cross-border trade, allowing net settlement between trade payments and related expenses such as transportation costs for trade in goods. The Draft also simplifies procedures for centralized collection and payment as well as net settlement of current account funds by multinational corporations, thereby supporting high-quality multinational companies in improving fund settlement efficiency.



(Source: http://www.safe.gov.cn/safe/2025/0905/26508.html)

Note: The link to the Chinese official website of the document is for your reference.