China says no problem with foreign firms’ remittances

China said on Tuesday that foreign firms in Chinese mainland can transfer their profits abroad as normal after a recent rumor claiming several foreign companies in the country failed to remit their profits abroad.

China has achieved the convertibility of current account, and any authentic and compliant cross-border payment and transfer for trade in goods and garments as well as for stock dividend can be done in commercial banks, while the firms are required to show the banks valid transaction vouchers, the People’s Bank of China (PBOC) said on Weibo, a Twitter-like Chinese microblogging platform in China, Tuesday.

A rumor saying BMW, a German motor company, has failed to transfer their  profits abroad from China since November 2016 spread on China’s online community on February 27. It also said BMW now has to use the Hong Kong and Shanghai Banking Corporation (HSBC) to pay its overseas suppliers, and many other foreign firms in China has all encountered similar problems.

According to Chinese media, several foreign firms such as General Motors said they have never heard about any restrictions on cross-border remittances.

PBOC said on Weibo that foreign companies who encounter problems during remittance of profits should report to PBOC and State Administration of Foreign Exchange (SAFE), on kaujc@pbc.gov.cn and safecfa@mail.safe.gov.cn.


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