Forex trading in China operates under strict regulatory control by the State Administration of Foreign Exchange and the People's Bank of China, which maintain a closed capital account system. SAFE is responsible for supervising and managing the foreign exchange market, implementing foreign exchange administration under both current and capital accounts, and regulating management of overseas and domestic foreign exchange accounts (1).
China maintains strict rules preventing companies, banks, and individuals from freely moving money in or out of the country without compliance with foreign exchange regulations. Banks must report all overseas transfers by individuals of $10,000 or more, and all single foreign exchange transactions of at least $5 million must be reported to central government authorities (2).
"To be responsible for the supervision and management of the foreign exchange market of the state; to undertake supervision and management of the settlement and sale of foreign exchange; to cultivate and develop the foreign exchange market."
The People's Bank of China and SAFE regulate foreign exchange flow through a managed float system, requiring enterprises to register contracts containing prepayment clauses within 15 working days. Companies must report any overseas payment with terms exceeding 90 days to SAFE, with accumulated overpayment amounts limited to 10% of total importation amounts from the previous year (2).
Source:
https://www.safe.gov.cn/en/MajorFunctions/index.html
https://www.privacyshield.gov/ps/article?id=China-Foreign-Exchange-Controls
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
