Foreing Exchange Regulations for Foreign Visitors

Article 17 of the Regulations on Foreign Exchange Control of the People's Republic of China stipuletes that foreign exchange remitted or brought in from foreign countries by resident foreign organizations in China and personnel attached to these organizations may be kept in their own possession, or deposited in the bank, or taken abroad with effective certificates.

Highlights of this article are:

1) Foreing exchange remitted or brought in from foreign countries by resident foreign organizations in China and personnel attached to these organizations may be kept in their own possession, or sold or deposited in a designated bank, or remitted or taken abroad with Customs declaration documents.

2) All the expenses incurred by resident foreign organizations in China and personnel attached to these organizations should be paid for in Renminbi.

The remaining amount of Renminbi converted from foreign exchange can be converted back into foreign currency and brought or remitted abroad by showing one's passport and the conversion sheet within a six-month grace period.

3) Resident foreign organizations in China and personnel attached to these organizations are not allowed to buy or sell foreign exchange in China.

Judging from China's current foreign exchange control regulations, the conversion between foreign exchange and Renminbi can take place only in two forms: first, through a bank empowered to handle foreign exchange businesses; and second, purchases and sales through the China Foreign Exchange Trade Centre and the system attached to it. All transactions between foreign exchange and Renminbi conducted other than through these two channels are unauthorized behaviours no matter at what exchange rate such transactions have been made. Such unauthorized behaviours are illegal and banned by Chinese law because they serve nothing but to disturb the country's financial order. According to Article 45 of the Regulations on Foreign Exchange Control of the People's Republic of China, those who have conducted unauthorized purchases and sales of foreign exchange will be warned by the foreign exchange control authorities, the foreign exchange in their possession will be converted in a compulsorymanner, the unlawful income from such transactions will be confiscated, and a fine between 30 percent and three times of the amount of foreign exchange involved shall be imposed.

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