China to ease currency controls for MNCs

China’s State Administration of Foreign Exchange is relaxing some currency controls for multinational companies, The Wall Street Journal reported, citing a late Friday statement by the regulator. The new rules, which expand on a trial program started in December 2012, would allow domestic and foreign firms with at least US$100 million in foreign-exchange income in the past year to transfer capital more freely. China for years has maintained a “closed” capital account, strictly controlling the movement of money in and out of the country. SAFE said the latest move will take effect June 1.