In order to further optimize the business environment and enhance the quality and efficiency of foreign exchange services for the real economy, the Hubei Provincial Branch of the State Administration of Foreign Exchange has formulated and issued the “Implementation Rules for the High-level Pilot Opening of Cross-border Trade of the Hubei Provincial Branch of the State Administration of Foreign Exchange”, clarifying that from June 1, 2026, the pilot policy for high-level openness of cross-border trade will be officially implemented in Wuhan, Xiangyang, Yichang, Huangshi, and Jingmen.
Through a series of measures such as expanding the scope of netting settlement, we will comprehensively optimize the current account business process and help Hubei’s foreign-related economic development with high quality.
Huangshi Tianxing Trading Co., Ltd. is mainly engaged in steel export business and has long-term trade with the same customer in Hong Kong.
Under the previous settlement model, companies were required to collect export payments one by one and then pay related after-sales fees separately. Not only did they have to prepare two sets of cross-border payment information, they also had to bear multiple remittance fees and face possible exchange rate fluctuation risks.
Thanks to the support of the pilot policy, enterprises and customers can carry out net settlement of current account foreign exchange receipts and payments, and the process from submitting a business application to net receipt netting is completed in less than half an hour, achieving “one application, one settlement”.
“In the past, cross-border receipts and payments were handled separately, which was time-consuming and labor-intensive and increased costs. Now, business processing can be completed with one net settlement, which not only saves work time, but also reduces cross-border fees and operating costs by tens of thousands of yuan.” The person in charge of corporate finance praised.
YOFC Optical Fiber and Cable Co., Ltd. and its overseas subsidiaries carry out general trade import and export transactions on a regular basis. The number of fund collection and payment transactions is large, the process is cumbersome, and the exchange cost is high. Dozens of transactions every month occupy a lot of manpower and capital costs, restricting the efficiency of capital turnover.
The company stated that this netting settlement business effectively simplifies cross-border fund collection and payment procedures, improves the flexibility of capital dispatch, and provides strong support for companies to deeply explore the global market and expand overseas layout.
In the next stage, the Hubei Provincial Branch of the State Administration of Foreign Exchange will actively promote the implementation of the pilot policy for high-level opening up of cross-border trade, support more qualified high-quality enterprises to participate in the pilot, and fully enjoy a series of “policy dividends” such as innovation in settlement methods, improvement in settlement efficiency, and access to pilot entities.
At the same time, it will also guide and encourage prudent and compliant banks to optimize their business processes, provide high-quality cross-border financial services to high-quality enterprises, and empower the high-quality development of the foreign trade industry.
The implementation of this series of policies will not only help local enterprises in Hubei better participate in international market competition, but will also further enhance Hubei’s influence in cross-border trade and promote the development of Hubei’s foreign-related economy in a higher-quality and more sustainable direction.
As the policy is gradually advanced, I believe more companies will benefit from it and inject new vitality into Hubei’s economic development.
