The State Administration of Foreign Exchange (SAFE) has issued the Circular on Further Improving the Administration of Domestic Foreign Exchange Loans (Hui Fa〔2026〕No.23), which officially takes effect on October 1, 2026.

AC Consulting sorts out the core policy updates for foreign-invested enterprises and export-oriented enterprises in China. The new regulation optimizes account management rules and greatly simplifies foreign exchange settlement procedures, bringing obvious operational convenience to cross-border financing businesses.

AC Core Highlights

1. Optimized Account Management Rules

In principle, domestic foreign exchange loans must be managed via dedicated loan accounts.

For loans with goods or services export background, supported by verifiable export documents and self-liquidating export income sources, funds can be directly transferred to the borrower’s current foreign exchange settlement account.

2. Streamlined FX Settlement and Purchase Processes

The official administrative approval for purchasing foreign exchange to repay domestic foreign exchange loans has been officially cancelled.

Enterprises only need to provide authentic supporting trade documents to complete procedures directly through banks.

3. Strengthened Post-Supervision Compliance Requirements

Banks are required to strictly verify the authenticity of all trade backgrounds.

SAFE will strengthen ongoing monitoring and inspection to effectively prevent illegal fund diversion and ensure standardized capital usage.

This new policy significantly improves financing flexibility for foreign-invested enterprises and domestic export enterprises with cross-border business demands.

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AC Consulting provides professional one-stop compliance and enterprise service solutions for foreign SMEs operating in China.

Disclaimer: This article is interpreted by AC Consulting for reference only. It does not constitute tax, legal or compliance advice. All implementation standards shall be subject to the latest official documents released by competent authorities.