The basic policy of China's foreign exchange management: China implements the statistical declaration system of international payments, and all units and individuals with international payments must declare international payments. Foreign exchange management is supervised and managed by foreign exchange management departments at all levels through banking institutions.
(1) Current account foreign exchange management. On the export side, China implements a bank settlement system for current account foreign exchange income, and the current account foreign exchange income of domestic enterprises must be remitted back to China and sold to designated foreign exchange banks in accordance with state regulations on the management of foreign exchange settlement, collection and payment, or approved to open foreign exchange accounts in designated foreign exchange banks. In terms of import, domestic enterprises use current account foreign exchange to purchase foreign exchange from designated foreign exchange banks with valid vouchers and commercial documents in accordance with the state regulations on the management of foreign exchange settlement, collection and payment. Domestic institutions shall go through the verification procedures for export receipts and import payments in accordance with state regulations. The important documents that need to be written off are mainly the People's Republic of China (PRC) Customs Import and Export Declaration Form. In terms of purchasing foreign exchange by individuals, China continues to implement the quota of $50,000 per person per year. However, the supervision of the use of foreign exchange purchases began to be strengthened, making it clear that domestic individuals may not use foreign exchange purchases for capital projects that have not yet been opened, such as overseas housing purchases and securities investment.
(2) Foreign exchange management of capital account. Internally, China has always encouraged foreign investment. Foreign exchange income from capital projects of domestic enterprises shall be repatriated to China and foreign exchange accounts shall be opened in designated foreign exchange banks; The sale of foreign exchange to designated foreign exchange banks must be approved by the foreign exchange administration. Overseas, domestic enterprises to invest overseas, the foreign exchange management agencies shall examine the source of foreign exchange funds. Some projects need the approval of the National Development and Reform Commission and the Ministry of Commerce. At present, the state has strengthened the examination and approval of overseas investment by domestic enterprises. (3) RMB exchange rate and foreign exchange market management. At present, China implements a single and managed floating exchange rate system based on market supply and demand. At present, the currencies allowed to trade are RMB against US dollar, Hong Kong dollar, Japanese yen and Euro.