An Information System for Direct Investment Foreign Exchange Business Will Be Po

In accordance with the requirements of the State Council for further transforming government functions and establishing service-oriented governments as well as promoting e-government administration, and in order to adapt to the need to develop direct investment within the new context, promote the reform of foreign exchange administration for direct investment, and raise management efficiency, service levels, as well as statistical, monitoring, analytical, and pre-warning capabilities for direct investment, and to facilitate an increase in investment, the State Administration of Foreign Exchange has decided to disseminate a nationwide online information system for Direct Investment Foreign Exchange Business beginning in May 2008 on the basis of early pilot programs.

The Information System for Direct Investment Foreign Exchange Business is composed of four major functional modules: foreign investment, overseas investment, annual inspections, and statistical analysis. At this time, primarily the foreign direct investment module will be promoted and go online nationwide. A networking data exchange mechanism will be established for the SAFE with banks, enterprises, and accounting firms due to the promotion of the online system. Thus enterprises can apply to the SAFE directly through the Internet for relevant business and at the same time, the SAFE will phase out the use of paper-based vouchers and adopt IC cards in place of the paper-based foreign exchange registration certificates so as to ensure the timeliness, convenience, reliability, and security of business registration, operations, and data transmission in terms of means and increase the statistical, monitoring, and pre-warning levels for cross-border capital under direct investment accounts.