BEIJING (Reuters) - China will not limit overseas remittances of foreign firms’ “normal profits”, the foreign exchange regulator said on Friday.
China’s foreign exchange reserves fell for a fifth straight month in November to the lowest since March 2011, amid worry authorities are tightening controls of capital flows as the yuan slides to more than 8-year lows versus the dollar.
China will not limit legitimate and compliant international payments and transfers, including dividends, which meet approval requirements, the State Administration of Foreign Exchange said in a statement on its official microblog.
Tighter rules on outbound capital flows have raised barriers for European and U.S. companies to get money out of the country, with one saying dividend payments had been affected, business lobbies for U.S. and E.U. firms said on Wednesday.
The European Union Chamber of Commerce in China said approvals for transfers of dividends had been tightened in China.
Reporting by Beijing Monitoring Desk and Elias Glenn; Editing by Kim Coghill