On July 15 2014, the State Administration of Foreign Exchange (SAFE) issued the Circular on Issues Relevant to Launching a Pilot Project for Reform of the Administration Method for the Settlement of the Foreign Exchange Registered Capital of Foreign-invested Enterprises in Certain Regions (国家外汇管理局关于在部分地区开展外商投资企业外汇资本金结汇管理方式改革试点有关问题的通知) (Circular 36), which came into effect on August 4 2014. Circular 36 provides greater flexibility to
Capital accounts unlocked
SAFE's new Circular has eased burdens for foreign-invested enterprises converting foreign exchange in their capital accounts into renminbi, but the rules around business scope still need to be clarified
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