China will launch a foreign exchange monitoring system to scrutinize checks on the authenticity of export transactions, the government said, in its latest move to crack down on speculative capital inflows.
Exporters must have their revenues audited by banks before they can exchange the money into the local currency, a statement posted on the commerce ministry’s Web site said late on Wednesday.
The new system is aimed at “enhancing the supervision of cross-border capital flows and improving checks on the authenticity and consistency of the export transactions and the foreign exchange settlement involved,” it said.
The system will roll out nationwide on July 14, said the statement, which can also be found on the Web sites of the State Administration of Foreign Exchange (SAFE) and the customs bureau.
Meanwhile, companies will be required to register their export revenue received in advance and deferred payment of imports, the statement said.
This is to “prevent the fraudulent export transactions that disguise the movement of speculative capital into China ... and the convergent large-scale capital outflow in the future,” it added.
Speculative money is entering China as investors hope for gains from factors such as the continued strengthening of the yuan.
China’s foreign exchange reserves, by far the largest in the world, hit US$1.80 trillion at the end of May.
That figure was up US$40.3 billion from April, against a rise of US$74.5 billion in the previous month. Experts said the difference was mainly the result of a cut in the amount of speculative capital inflows.
SAFE, an arm of the central bank, has made monitoring and curbing speculative capital inflows one of its near-term priorities.
As part of its efforts, it ordered banks to submit monthly data on non-resident domestic currency accounts, Chinese media said last month.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS