USCBC Works to Establish Capital Control Channel with PBOC

Companies have a new channel to resolve delays in current account transactions such as receiving payments from domestic customers, payment of dividends or royalties, and even routine trade payments, according to a People’s Bank of China (PBOC) statement issued February 28. PBOC officials indicated that the announcement was made in response to a US-China Business Council (USCBC) delegation meeting with PBOC senior officials on February 20 in Beijing. During the meeting, USCBC President John Frisbie emphasized that companies understand the challenge of managing capital flows and stabilizing the renminbi, but the limits on regular business transactions had increased uncertainty in the investment environment and were undermining investor confidence.