Recently, China has formally implemented the new regulations on foreign exchange control and cancelled the mandatory return of foreign exchange earnings to the mainland.

This means that enterprises in our province can use foreign exchange earnings directly for overseas investment, and the overseas investment of Zhejiang businessmen is expected to accelerate.

Under the original mandatory exchange settlement system, the foreign exchange earnings earned by enterprises' export commodities and services are kept in accordance with the regulations, and the rest must be sold to designated foreign exchange banks within the stipulated time. The latter will sell foreign exchange to the central bank and form foreign exchange reserves.

In recent years, our province's overseas investment enthusiasm has been increasing.

In the first half of this year, the total foreign investment of our province reached 430 million US dollars, up by more than 1 times compared with the same period last year. However, foreign exchange earnings can not be directly used for overseas investment, to a certain extent, limiting the expansion of overseas investment in our province.

The new regulations will promote the expansion of import trade in our province.

For enterprises that are also engaged in import and export trade, under the compulsory exchange settlement system, foreign exchange earnings earned by export must be sold to designated foreign exchange banks except for a certain amount.

When imports need to be remitted, they need to be repurchased.

The original practice is not only complicated procedures, but also undertaking certain exchange losses, thus reducing the enthusiasm of enterprises to expand import trade.

After the cancellation of compulsory exchange settlement, the foreign exchange earnings of the enterprises in our province can be directly used for overseas investment or capital increase, without having to go through the process of "repaying abroad" again, thus greatly improving the efficiency of capital utilization.

Not long ago, the shoe industry park project invested by Wenzhou's "haw" footwear industry in Nigeria for $10 million has just been approved by the provincial development and Reform Commission. The company official said that the investment scale of the overseas footwear industry of "Ha Shan" increased year by year, the demand for foreign exchange was large, and the abolition of compulsory exchange settlement could play a "timely rain" effect for the enterprise.