General Information
For setting up:

Over the past few years the Chinese government has introduced many reforms related to the banking and financial industry. The tendency is to no longer make the injection of minimum capital obligatory upon the registration of a business. We recommend you ask the experts of the Crédit Agricole Group about different cases.

For negotiations:
Companies with no local presence that would like to trade with China should, in view of the foreign exchange controls, firstly ensure that their Chinese purchasers have an import licence (even if the currency of the commercial contract and of the payment is in RMB). Furthermore, China has no database to provide financial information on non-listed companies. It is therefore necessary to crosscheck information about potential suppliers or clients before signing a contract. In any case it is highly recommended to work on the basis of documentary credits or the payment of substantial deposits.

Means of Payment & Banking Specificities
There is still foreign exchange control in continental China, regardless of the numerous reforms introduced since 2013 by the SAFE and PBOC in relation to the banking system and businesses registered in different free zones. For international payments (in foreign currencies and/or in RMB) Chinese banks must request justifying documents as per the regulations imposed by the different regulators. On the other hand, the procedures are much easier for domestic payments in RMB (CNY): businesses can choose between cheques or bank transfer. The systems for domestic bank transfers, centralised by the PBOC via its electronic system, have changed a lot: over the past few years domestic payment has become very easy.

For transfers in RMB made from France it is no longer necessary to provide justifications if they have to do with commercial transactions. However, such justifications are still required for payments related to service provision.
Since August 2012 the PBOC has accelerated the rate of internationalisation of the RMB. A series of measures has been published (including direct investment in RMB from abroad, and financing in RMB abroad, etc.). The Crédit Agricole Group is equipped to carry out transfers and documentary credits in RMB.

Fraud
Since the end of 2013 we have seen a surge in fraudulent transfers made from France to China.