How to Transfer Money Out of China and Overcome Difficulties
May 21, 2020 | BY
Susan MokAlan Xu and Youran Wu of Zhong Lun Law Firm discuss the various methods that foreign-invested enterprises in China can adopt to remit funds to cash-strapped shareholders or affiliates overseas during the coronavirus pandemic
Under the policy of "opening the door wider" to foreign investors, the Chinese government has implemented a series of measures in recent years to make remittance of funds out of China easier
With the outbreak of the coronavirus on a global scale, many foreign investors are in urgent need of funds to flow back to their headquarters or home countries. An increasing number of foreign-invested enterprises (FIE) in China are searching for ways to funnel funds overseas, either to its foreign shareholder or a cash-strapped overseas affiliate entity.
Under the policy of "opening the door wider" to foreign investors, the Chinese government has implemented a series of measures in recent years to make remittance of funds out of China easier. Nevertheless, remittance of money out of China is still under foreign exchange control and requires careful pre-planning and consideration of relevant regulatory and tax implications.
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