🏢 Set Up a Company in China

Q: On August 19, China issued another prohibition order against the EU’s cross-border investigation measures targeting Chinese entities under the Foreign Subsidies Regulation (FSR). What is MOFCOM’s comment on this? (MOFCOM Regular Press Co...

China has issued a second prohibition order against the EU's use of its Foreign Subsidies Regulation (FSR) to investigate Chinese companies, this time in the JD.com case. The order, based on China's rules on counteracting unjustified extraterritorial application, bars any organization or individual from complying with or assisting the EU's cross-border information demands. MOFCOM criticized the EU for overreach and called for dialogue, while signaling that China will take further measures if necessary.

SAFE Holds Seminar on Foreign Exchange Administration Work for the Second Half of 2026

The State Administration of Foreign Exchange (SAFE) held its semi-annual work seminar on August 1 to review foreign-exchange administration in H1 2026 and set priorities for H2 2026. SAFE reported a stable FX market with net capital inflows and outlined plans to accelerate trade and investment payment facilitation, roll out new cross-border financing rules for multinationals, and tighten enforcement against illegal FX activity. No concrete rules were issued in this meeting; the announcements signal specific regulatory documents and rollout deadlines to monitor in the coming months.

China's central bank to strengthen financial support for key areas

The People's Bank of China (PBOC) announced in its Q2 2026 monetary policy report that it will strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises. The central bank will continue its accommodative monetary policy and optimize structural tools to improve the financing structure. It also reported that loan growth in technology, green, inclusive finance, elderly care, and digital economy sectors outpaced overall loan growth, and pledged to guard against exchange rate overshooting and systemic financial risks.

China's central bank to conduct 500-billion-yuan outright reverse repo operation

China's central bank, the People's Bank of China, announced a 500-billion-yuan (about $73.6 billion) outright reverse repo operation to maintain ample liquidity in the banking system. The operation, maturing in three months, rolls over and increases maturing outright reverse repos, expanding the central bank's monetary policy toolkit.

SAFE Releases Data on External Financial Assets and Liabilities of China's Banking Sector as at the ...

SAFE released quarterly statistics on China's banking sector external financial position. As of end-March 2026, banks held $2,108.6 billion in external assets against $1,485.1 billion in liabilities, resulting in net external assets of $623.6 billion. The data highlights the currency structure and counterpart distribution of cross-border banking exposures, offering transparency into China's international financial linkages.

SAFE Releases Data on China's External Portfolio Investment Assets by Country/Region and by Sector o...

The State Administration of Foreign Exchange (SAFE) released data on China's external portfolio investment assets as of the end of 2025, totaling USD 1,987.5 billion. The portfolio is composed of USD 1,262.8 billion in equity investments and USD 724.7 billion in bond investments. The largest recipients include Hong Kong SAR, the United States, and offshore financial centers, while non-bank financial institutions hold the majority of assets. This data provides transparency into China's overseas investment patterns and sectoral distribution.