China’s capital exodus prompts Beijing city to reassure foreign investors who make ‘authentic and compliant’ transactions
- Local-level authorities in the nation’s capital say that revenue earned by foreigners, Hongkongers, Macanese and Taiwanese will be allowed to freely flow in or out, without delays
- Move comes as cross-border capital flows have depreciated the yuan and contributed to an unpredictable business environment in China
![Beijing city authorities have moved to reassure foreign investors that their investment-related funds will be allowed to freely flow in and out of China. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2023/09/22/15711030-1079-4bdb-89ee-de4295572972_74c1e3ab.jpg?itok=e5LhUyHh&v=1695381677)
In the latest bid by local-level authorities in China to retain foreign investors and lure more of them to the world’s second-largest economy, Beijing city intends to ease up on strict capital controls and establish a fast-track mechanism to review cross-border data flows.
Foreign investment-related funds will be allowed to freely flow in or out, and without delay, if such transactions are “authentic and compliant [with Chinese regulations]”, according to a draft regulation released by the Beijing Municipal Commerce Bureau on Wednesday.
Meanwhile, the legitimately earned revenue of foreign, Hong Kong, Taiwan and Macau employees, including salaries and other income, would be allowed to be transferred overseas.
City authorities are soliciting public feedback on the proposal until October 20.
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