General Information

For setting up:

In recent years, the Chinese government has introduced many reforms regarding the banking and financial industry. The trend is to no longer make the minimum capital injection compulsory when registering a company. Additionally, there are still specific restrictions and conditions for entering certain industries and sectors, including the operating model. We recommend that you question the experts of the law firm or the Crédit Agricole group for the different cases.

For trading:

For companies without a local presence wishing to trade with China, in view of exchange controls, they must first ensure that their Chinese buyers have the import license (even if the currency of the commercial contract and payment is in RMB). If not, there is a case that the payment would be made by its import/export agent. Additionally, China does not have a database to provide financial information on unlisted companies. It is therefore necessary to cross-reference information on potential suppliers or customers before signing a contract. In any case, it is strongly recommended to work on the basis of documentary credits, or payment of substantial deposits.

Means of Payment & Banking Specificities:

There is still exchange controls in mainland China, notwithstanding many reforms (with more flexible control measures) initiated since 2013 by SAFE and PBOC concerning the banking system and companies registered in the various free zones. 

For international payments (in foreign currency and/or RMB), Chinese banks must verify this by requesting supporting documents in accordance with regulations promulgated by the various regulators. However, there is no control for domestic payments in RMB (CNY). 
The systems for domestic bank transfers - centralized by the PBOC via the electronic system - have evolved considerablyin recent years, domestic payment has become  very easy. A payment method (BAD in CNY, Bank Acceptance Draft) exists particularly in China, which allows companies to pay their suppliers within a maximum of 6 months after the issue of BAD. Companies that have received the AfDB may ask their banks to discount the AfDB if necessary.

In order to receive funds by transfers in foreign currency (EUR) from France, it is no longer necessary to provide supporting documents in the case of commercial transactions. But the customs declaration is still required if they are in CNY. However, there is still a need to provide supporting documentation in the case of payments for services in any currency.

Since August 2012, the PBOC has accelerated the internationalization of the RMB. A series of measures has been published (including direct investment in RMB from abroad, financing in RMB abroad directly, etc.). The Crédit Agricole Group is equipped to make transfers and credit in RMB.

Fraud:

Since 2020, there has been a decrease in fraudulent transfers from France to China. However, we advise you to remain vigilant when making payments to China.