MOC and PBC: Support foreign trade enterprises to intensify RMB cross-border use further

The Ministry of Commerce and the People’s Bank of China distributed and printed the Notice on Further Supporting Foreign Trade Enterprises to Intensify RMB Cross-border Use and Promote Trading & Investment Convenience jointly recently in order to implement the decisions and deployment of the Central Party Committee and the State Council, further facilitate RMB use in cross-border trading & investment and better satisfy foreign trade enterprises’ market demands such as trading settlement, investment and financing, risk management, etc.

It was underlined in the Notice that various local responsible commerce authorities and PBC’s branches shall implement the spirit of the 20th CPC National Congress and the Central Economic Working Conference in depth, fully recognize the active role of RMB cross-border business in serving real economy and facilitating trading & investment, grasp and satisfy industry enterprises’ demands in time and take targeted measures based on local realities, in order to create a favorable environment for RMB cross-border use.

Requirements of the Notice

Facilitate RMB valuation and settlement of various kinds of cross-border trading & investment, and promote banks to provide more convenient and efficient settlement services;

Encourage banks to provide overseas RMB loan services, innovate products and services actively and better satisfy enterprises’ RMB cross-border investment and financing demands;

Implement corresponding policies based on enterprises’ realities, enhance the sense of achievement of such entities as excellent enterprises, institutions handing the business for first time and small and medium-sized enterprises and micro businesses, and support the core enterprises in supply chain to take a leading role;

Promote RMB cross-border use by taking advantage of various opening platforms, such as pilot free trade zones, Hainan Free Trade Port, overseas economic and trade cooperation zones, etc.;

Provide business supports such as trading matchmaking, financial planning, risk management, etc. based on enterprises’ demands, intensify insurance guarantee, and improve integrated RMB cross-border financial services;

Exert the leading role of relevant capitals and funds;

Develop diverse publicities and training, promote the docking of banks and enterprises, and expand the coverage within which benefits brought by policies could be reached.

In particular, to address some small and medium-sized enterprises’ limited understanding and use of RMB cross-border business, MOC and PBC have organized financial institutions to prepare and issue a Manual for RMB Cross-border Service of Small and Medium-sized Enterprises, review main RMB cross-border policies and introduce relevant businesses and typical cases based on the specific scenarios.

Next, MOC will focus on the implementation of the Notice in partnership with the PBC, guide local and financial institutions to prepare specific measures and interpret policies accurately; promote various local authorities to reflect enterprises’ demands in time. Financial institutions shall keep improving products and service supply and promote the docking of banks and enterprises; develop policy publicity and promotion via different forms, and summarize and promote experience and methods in time.