General Information

For setting up:

IIn recent years, the Chinese government has introduced many reforms concerning the banking and financial industry. The trend is to no longer make the minimum capital injection mandatory when registering a business. In addition, there are still specific restrictions and conditions for entering certain industries and sectors, including the business model. We recommend that you consult the experts of a law firm or Crédit Agricole Group for the various cases.

For trading:

For companies without a local location that wish to trade with China, in view of the exchange control, they must first ensure that their Chinese buyers have the import licence to be carried out through their import/export agent. In addition, China does not have a database to provide financial information on unlisted companies. It is therefore necessary to cross-check the information on potential suppliers or customers before signing a contract. In any case, it is strongly advised to work on the basis of documentary credits, or payment of substantial down payments. (even if the currency of the commercial contract and payment is in RMB).

Means of Payment & Banking Specificities:

There is still foreign exchange control in mainland China, despite many reforms (with looser controls) initiated since 2013 by SAFE and PBOC concerning the banking system and companies registered in the various free zones. For international payments (in foreign currencies and/or RMB), Chinese banks must ensure this by requesting supporting documents according to the regulations promulgated by the various regulators. However, there is no control for domestic payments in RMB (CNY). Systems for domestic bank transfer - centralised by the PBOC via the electronic system - have evolved a lot in recent years and domestic payment is becoming 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 issuance of BAD. Companies that have received the ADB can ask their banks to discount the ADB if needed.

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

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