SHANGHAI May 11 China's foreign exchange
regulator will this month simplify the rules governing foreign
direct investment (FDI), the latest step towards deregulation
and market reform under China's new leadership.
The State Administration of Foreign Exchange (SAFE) will
abolish 24 regulations regarding foreign exchange registration,
account openings, remittance, and conversions, the agency said
in an announcement posted to its website on Saturday.
The move inches China closer to making its currency, the
yuan, convertible under the capital account, and follows a
previous round of FDI-related deregulation by SAFE in November
The new rules take effect on May 13.
Premier Li Keqiang told a meeting of the State Council,
China's cabinet, that the government would produce a detailed
"operational plan" to achieve capital account convertibility
this year, though he did not offer a timeline for
Li also called on agencies across the government to cut red
tape and cancel unnecessary administrative approvals. SAFE
referred to the State Council's call for deregulation in its
announcement on Sunday.
China drew $29.9 billion in foreign direct investment
in the first three months of 2013, up 1.4 percent
from a year earlier.
That rise put an end to persistently negative year-to-date
growth since early 2012 and was mainly driven by investment from
U.S. and European companies, according to Ministry of Commerce