ANNOUNCEMENT 08 Dec 2011In December 2011, the government of China announced altered domestic business conditions for foreign investors.
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Notice on Further Improving Management Measures Concerning Foreign-invested Companies by Ministry of Commerce. Ministry of Commerce Policy Release No. 1078(2011), 8 December 2011.
On 8 December 2011 China introduced new rules on foreign-funded investment firms, including barring them from using loans obtained inside China to finance their expansion in China. Thus, foreign-funded investment companies may (with the approval of local foreign exchange bureau) directly use RMB profits, RMB obtained in China by way of early recovery of investment gains, liquidation, equity transfer and capital reduction for domestic investment, which increases the foreign exchange convenience for foreign-funded investment firms.