Recently, the Ministry of Commerce (MOFCOM) and the People’s Bank of China (PBC) has jointly issued the Notice on Further Supporting Foreign Economic and Trade Enterprises in Expanding the Cross-border Use of Renminbi to Facilitate Trade and Investment. The move aims to implement the decisions and arrangements of the Central Committee of the Communist Party of China (CPC) and the State Council and to further facilitate the use of RMB in cross-border trade and investment, so as to better meet the market needs of foreign economic and trade enterprises regarding transactions and settlement, investment and financing, and risk management.
The notice stresses that local commerce authorities and PBC branches should thoroughly study and implement the guidelines of the 20th CPC National Congress and the Central Economic Work Conference, and fully understand the positive role of cross-border RMB business in serving the real economy and in facilitating trade and investment. Additionally, the agencies should promptly identify and address the needs of industries and enterprises, and take targeted measures based on local reality to create a favorable environment for the cross-border use of RMB.
According to the notice, convenience should be offered to settle various cross-border trade and investment businesses in RMB, and banks are expected to provide more convenient and efficient settlement services. Banks are encouraged to make overseas RMB loans and innovate products and services to satisfy the needs of enterprises for cross-border RMB investment and financing. Policies shall vary with enterprises to enhance the sense of gain for high-quality enterprises, first-time account holders, and micro, small and medium-sized enterprises, so as to enable core enterprises in the supply chain to play a leading role. The cross-border use of RMB can also be promoted via open platforms such as pilot free trade zones, the Hainan Free Trade Port, and overseas economic and trade cooperation zones. Business support tailored to enterprises’ needs, such as deal matchmaking, financial planning, and risk management, may be provided to boost insurance guarantee and enhance comprehensive financial services regarding the cross-border RMB business. Relevant capital and funds can play a guiding role as well. In addition, diversified publicity and training shall be carried out to boost connection between banks and enterprises and benefit more market players.
