Late on 29 October the State Administration of Foreign Exchange (SAFE) released a circular introducing a package of measures aimed at cutting paperwork and cost for companies settling cross-border transactions. Key changes include expanding the scope of netting settlement—allowing multinationals to offset inter-company loans against service-fee outflows—and permitting banks to process advance payments for logistics services without prior SAFE approval.
SAFE framed the move as support for “new trade formats” such as cross-border e-commerce and offshore warehousing, sectors that increasingly rely on agile cash management. Beijing-based treasury managers told Global Mobility News that the new rules could shorten payment cycles by two to three working days and eliminate the need for physical documentation in many cases.
For global mobility teams the implications are concrete: faster reimbursement of employee relocation expenses billed through overseas payroll entities, smoother settlement of housing allowances paid to expatriates, and reduced bank-handling fees on high-volume remittances. Companies operating assignment-management centres in Shanghai and Shenzhen stand to benefit first, as major banks there already support the upgraded electronic declaration system.
Legal advisers caution that compliance checks remain stringent; firms must retain digital records for five years and may face spot audits. Still, the consensus is that the policy is a notable step towards the long-promised “single-window” for cross-border finance, aligning China more closely with OECD best practice.
SAFE said it will assess market feedback through March 2026, hinting at further liberalisation if foreign-exchange leakages remain under control.
SAFE framed the move as support for “new trade formats” such as cross-border e-commerce and offshore warehousing, sectors that increasingly rely on agile cash management. Beijing-based treasury managers told Global Mobility News that the new rules could shorten payment cycles by two to three working days and eliminate the need for physical documentation in many cases.
For global mobility teams the implications are concrete: faster reimbursement of employee relocation expenses billed through overseas payroll entities, smoother settlement of housing allowances paid to expatriates, and reduced bank-handling fees on high-volume remittances. Companies operating assignment-management centres in Shanghai and Shenzhen stand to benefit first, as major banks there already support the upgraded electronic declaration system.
Legal advisers caution that compliance checks remain stringent; firms must retain digital records for five years and may face spot audits. Still, the consensus is that the policy is a notable step towards the long-promised “single-window” for cross-border finance, aligning China more closely with OECD best practice.
SAFE said it will assess market feedback through March 2026, hinting at further liberalisation if foreign-exchange leakages remain under control.
