China eases restrictions on outbound direct investment projects

China has relaxed its restrictions on preliminary expense remittance in outbound direct investment projects, as part of its reform efforts to facilitate cross-border investment, the State Administration of Foreign Exchange said. 

SAFE said on Friday it has recently released a circular that includes nine policy measures aimed at deepening reforms to facilitate cross-border trade and investment. 

The circular removes the restriction that the cumulative remittance of preliminary expenses for outbound direct investment by a domestic enterprise should not exceed the equivalent of $3 million. It instead stipulates that the cumulative remittance should not exceed 15 percent of the total intended investment by the Chinese enterprise.

Meanwhile, the circular includes measures to facilitate foreign-invested enterprises' foreign exchange receipts and payments and add technology-focused small and medium-sized enterprises into the pilot scheme for cross-border financing facilitation.