Global Trade Alert

On 8 December 2011, the Ministry of Commerce, Ministry of Finance, State Administration on Taxation, State Administration for Industry and Commerce, State Statistics Buerau, and the State Administration on Foreign Exchange jointly issued the Notice on Further Improving Measures in relation to Foreign-funded Investment Companies (Shangzihan'2011' No.1078).
 
The Notice mainly prescribes relevant requirements and restrictions on reinvestment in China. In particular, foreign investment companies shall not use loans obtained in China for reinvestment in China. Investment revenue in RMB, income obtained through advance recovery of investment, clearance, stock transfer, capital reduction in RMB are allowed to be used directly for investment in China.