China Moves to Simplify Forex Settlements, Ease Cross-Border Business

Draft measures would expand forex services, ease compliance requirements and simplify overseas trade payments, regulator says

1. Nationwide expansion from January 1: A pilot scheme facilitating foreign exchange receipts and payments for cross-border trade will be extended nationwide, allowing banks to simplify documentation checks and settlement procedures for eligible companies with good compliance records.

2. Expansion of payment services: Payment institutions will be permitted to provide foreign exchange conversion and payment services beyond cross-border e-commerce to include market procurement trade and integrated foreign trade services.

3. Relaxation of trade credit reporting: Eligible companies with strong compliance records may be exempted from trade credit reporting requirements.

4. Simplified reporting: Companies with sound internal controls will be allowed to report outstanding trade credit balances monthly instead of reporting each transaction separately.

5. Easier operating lease settlements: Foreign exchange settlement rules for operating leases will be relaxed.

6. Netting of cross-border payments: Eligible businesses in nine border regions will be permitted to offset cross-border trade receipts against payments.

7. Simplified sports event transactions: Organisers of international sporting events will be allowed to handle event-related transactions through payment instructions.

8. Easier services for overseas participants: Foreign participants in international sporting events will be able to access personal foreign exchange services without submitting supporting documents for every transaction.

[ABS News Service//03.11.2026]

China plans to expand foreign exchange settlement services and streamline cross-border trade payments, in a move to lower transaction costs and facilitate international commerce.

The State Administration of Foreign Exchange (Safe) on Monday released a draft notice for public consultation outlining nine measures to facilitate current-account foreign exchange transactions. The proposals aimed to “broaden the applicable scenarios, scope and types of services” and “further reduce businesses’ fund settlement and transaction costs”, according to the regulator.

Among the key measures is a plan to roll out nationwide, from January 1, a scheme facilitating foreign exchange receipts and payments for cross-border trade. The programme has so far operated on a pilot basis.

The scheme allows banks to simplify documentation checks and settlement procedures for eligible companies with sound compliance records when handling cross-border trade transactions.

The draft also seeks to expand the scope of foreign exchange services offered by payment institutions beyond cross-border e-commerce to include market procurement trade and integrated foreign trade services. The change would allow providers to handle currency conversion and related payments for businesses in those sectors.

Public consultation on the draft runs until December 1.

The move follows a pledge by Safe chief Zhu Hexin last month to introduce a package of measures to facilitate current-account transactions, alongside separate steps to ease cross-border investment and financing and further open up the foreign exchange market.

Speaking at the 2026 Financial Street Forum in Beijing, Zhu said the initiatives would help businesses make better use of domestic and overseas markets and resources.

Other measures in Monday’s draft included exempting eligible companies with strong compliance records from trade credit reporting, while allowing companies with sound internal controls and compliance records to report outstanding trade credit balances on a monthly basis rather than on a transaction-by-transaction basis.

The draft further proposes easing foreign exchange settlement rules for operating leases and allowing eligible businesses in nine border regions to net cross-border trade receipts and payments.

The proposed measures would also streamline foreign exchange services for international sporting events, allowing organisers to handle event-related transactions through payment instructions, while overseas participants would be able to access personal foreign exchange services without submitting supporting documents for every transaction.