State Administration of Foreign Exchange: Allow foreign investors to reinvest foreign exchange profits domestically under the direct investment category.

On September 15, the State Administration of Foreign Exchange issued a notice on matters related to deepening reforms in the management of cross-border investment and financing foreign exchange. It mentioned that it allows the reinvestment of foreign exchange profits in China under direct foreign investment. Foreign-invested enterprises can reinvest profits generated in China or obtained legally by overseas investors in China. The related foreign exchange funds can be transferred to the capital account of the invested enterprise or the capital project settlement account of the equity transferor, and funds are to be used according to the relevant account management requirements. The reforms aim to make cross-border financing more convenient. Qualified high-tech, "specialized and new" technology-based small and medium-sized enterprises nationwide can borrow foreign debt up to 10 million US dollars. Among them, enterprises selected by relevant departments based on the "innovation points system" can borrow up to 20 million US dollars in foreign debt. The notice also includes further reforms in the management of cross-border investment in foreign exchange, simplification of regulations for cross-border financing, and optimization of policies for the payment of capital project income. The notice emphasizes the need for monitoring and supervision by local authorities to ensure compliance with the regulations. This notice was issued by the State Administration of Foreign Exchange on September 12, 2025.