China to facilitate intl e-commerce forex settlement

China announced on May 20 eased rules on foreign exchange settlement and purchases amid efforts to support cross-border e-commerce and other new trade industries.

Banks are allowed to offer foreign exchange settlement services for market entities of cross-border e-commerce and other new trade industries upon provision of relevant electronic transaction information, according to a guideline released by the State Administration of Foreign Exchange.

With relevant certificates or electronic transaction information, foreign exchange settlement and purchases are allowed for individual market entities of international e-commerce, without taking up their annual foreign exchange purchase quotas.

The rules, with immediate effects, aimed to ease foreign exchange-relevant policies, improve services and streamline procedures to support new industries of foreign trade, said the administration's spokesperson Wang Chunying.

This came after the administration announced last month to streamline or ease some rules to facilitate cross-border trade and investment, part of the country's efforts to boost trade as the COVID-19 pandemic hobbles global demand and weighs on trade growth.