China urges foreign firms to make ‘joint efforts’ to control flow of cash out the country
Request comes as many foreign companies operating on the mainland are complaining about the impact of capital controls on their businesses
China’s foreign exchange regulator has asked for cooperation from multinationals, including Sony, BMW, Daimler, Shell, Pfizer, IBM and Visa, to manage and control the flow of capital out the country.
The request was made public in a report on the State Administration of Foreign Exchange’s website after the regulator’s chief addressed a delegation of foreign businesses in China at a symposium in Beijing on Wednesday.
“A stable and good foreign exchange market is in line with the common interests of regulators and market players and it requires joint efforts from all sides,” Pan Gongsheng was quoted as saying.
The meeting came as many foreign businesses are complaining, albeit privately, about Beijing’s tightened controls and vetting of outbound remittances and payments as it attempts to stem the flow of cash out the country after the nation’s currency has weakened against the US dollar.
The Chinese government says it is merely implementing existing rules and regulations and it has not imposed any fresh capital account control measures.