The Ministry of Commerce and the Central Bank jointly issued a document to further support foreign economic and trade enterprises to expand the cross-border use of RMB
2023-01-12
On January 11, the Ministry of Commerce and the People's Bank of China jointly issued the Notice on Further Supporting Foreign Economic and Trade Enterprises to Expand the Cross-border Use of RMB to Facilitate Trade and Investment (hereinafter referred to as the "Notice"), which further facilitated the use of RMB in cross-border trade and investment from nine aspects and better met the market needs of foreign economic and trade enterprises such as transaction settlement, investment and financing, and risk management. The notice stressed that local commercial authorities and branches of the People's Bank of China should thoroughly study and implement the spirit of the 20th CPC National Congress and the Central Economic Work Conference, fully understand the positive role of cross-border RMB business in serving the real economy and promoting trade and investment facilitation, timely identify and meet the needs of industry enterprises, and take targeted measures in combination with local realities to create a good environment for cross-border use of RMB. The notice requires that all kinds of cross-border trade and investment should be facilitated to use RMB for pricing and settlement, and promote banks to provide more convenient and efficient settlement services; Encourage banks to carry out overseas RMB loans, actively innovate products and services, and better meet the cross-border RMB investment and financing needs of enterprises; As enterprises implement policies, enhance the sense of acquisition of high-quality enterprises, first-run households, small and medium-sized enterprises, and support core enterprises in the supply chain to play a leading role; Relying on various open platforms such as the Free Trade Pilot Zone, Hainan Free Trade Port, and Overseas Economic and Trade Cooperation Zone to promote the cross-border use of RMB; Provide business support such as transaction matching, financial planning and risk management based on the needs of enterprises, strengthen insurance protection, and improve cross-border RMB comprehensive financial services; Give play to the guiding role of relevant funds and funds; Carry out diversified publicity and training, promote the connection between banks and enterprises, and expand the scope of policy benefits. Pang Ming, chief economist and director of research department of Jones Lang LaSalle in Greater China, said in an interview with the reporter of Securities Daily that the notice takes security and controllability as the premise, takes high standard international financial rules and economic and trade rules as the reference, closely around the needs of the real economy, horizontally covers all kinds of true and compliant trade and investment, and vertically covers transaction settlement, cross-border receipt and payment, investment and financing activities Financial planning and risk management and other business chain to promote a higher level of trade and investment RMB settlement facilitation. Specifically, in promoting the facilitation of trade and investment at a higher level, the notice proposes to facilitate the cross-border RMB settlement of goods trade, service trade and various new forms of trade, support the pricing and settlement of bulk commodities in RMB, support foreign investors to invest in China and reinvest in China in RMB, facilitate the centralized management of overseas funds of foreign contracting enterprises in RMB, and the remittance of necessary payments, and support cooperation with neighboring countries (regions) RCEP intra-regional trade and investment settlement in RMB. In terms of continuous improvement of comprehensive financial services, the notice said that banks should be encouraged to actively innovate product services, provide comprehensive financial services such as transaction matching, payment and settlement, financial planning, risk management, etc., provide more tools for maintaining and increasing the value of RMB, and cultivate the habit of using RMB by domestic and foreign entities. Banks are encouraged to simplify the cross-border RMB settlement process in accordance with the principle of "substance over form", and improve the convenience and efficiency of capital receipt. Strengthen insurance protection and increase export credit insurance and insurance for enterprises' cross-border trade and investment in RMB by expanding coverage and optimizing underwriting conditions
Edit：wangwenting Responsible editor：xiaomai
Source：china.cn
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