What restrictions apply to the use of foreign currencies in China?

In China, foreign currency use is subject to the restrictions outlined by the China Business Ventures Law. Before engaging in financial activities involving foreign currencies, an individual or entity must be approved by the State Administration of Foreign Exchange (SAFE). They must also open an offshore account with a Chinese commercial bank. The Chinese government regulates foreign currency use for both residents and non-residents. Within China, residents must register with SAFE before buying or selling foreign currencies. In addition, capital must be declared before it is brought into or out of China. Non-residents are generally allowed to use foreign currencies in certain transactions. However, their access to foreign currencies is restricted. For example, foreign currencies may only be purchased in certain amounts or with specific types of accounts. Overall, the Chinese government is very strict about its restrictions on foreign currency use. They have put in place these regulations to monitor the nation’s economic activity and help protect the Chinese economy. As such, it is important for businesses and individuals to be aware of the restrictions when doing business in China.

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What restrictions apply to the use of foreign currencies in China?

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