New Ways to Use Your Offshore RMB: MOFCOM and PBoC Join Hands to Put Finishing Touches on RMB FDI Rules

In a clearly concerted effort, the PRC Ministry of Commerce ("MOFCOM") issued on 12 October 2011 a Circular on Relevant Matters concerning Direct Investment in Cross-border RMB ("Circular No. 889") and the People’s Bank of China ("PBoC") announced on 13 October 2011 the Administrative Measures on RMB Settlement for Foreign Direct Investment ("PBoC Measures"). These new rules were both promulgated on 14 October 2011 and have clarified, from the regulatory and banking settlement perspectives, a number of remaining issues left by previous rules of these two central governmental authorities in respect of foreign direct investment ("FDI") in cross-border Renminbi ("RMB").