What is the foreign exchange control policy regarding the operation of an FIE?
In China, the foreign exchange is strictly controlled especially in the areas of the daily operation of an FIE. All FIEs must obtain the approval from competent Administration of Foreign Exchange for the foreign currency account opening and conduct the foreign currency registration formalities. Such foreign currency registration should be examined annually together with the annual AIC examination. The opening bank has the right to supervise the FIE’s operational remittance in foreign currency. During the operation, FIEs may borrow foreign currency from foreign banks in accordance with PRC laws and regulations, subject to the registration with competent Administration of Foreign Exchange. The expatriate staff could change their salary and other lawful income derived from China into foreign exchange and remit out of China after paying relevant tax.
