China lowers hurdle for overseas money transfers

China lowers hurdle for overseas money transfers

Shanghai and Beijing among cities looking to reduce government regulations

SHANGHAI — China has begun simplifying overseas remittance procedures, with at least four cities having reduced the documentation required for sending money abroad for trade in services.

Authorities are trying to show their commitment to deregulation as the economy recovers and capital inflow resumes.

Shanghai decided earlier this year to ease remittance procedures for trade in services and goods. This has simplified money transfers, as pre-authorized companies do not have to submit contracts and other documents for overseas remittances.

Authorities have also increased the number of banks approved to handle money transfers. There are now at least eight in Shanghai. Among Japanese banks, Sumitomo Mitsui Banking received approval in October.

China decided in 2019 to simplify remittance procedures for trade in goods. Shanghai, Beijing, Suzhou and Hangzhou have extended this measure to trade in services.