Following US President Donald Trump’s decision to impose a high tariff on Chinese imports, Chinese authorities are strictly carrying out vigilance on the forex traders in China. This has made it difficult for foreign trading companies operating in China to facilitate capital flow outside of the country. Over the last few years, local authorities such as the State Administration of Foreign Exchange (SAFE) and the People’s Bank of China (PBoC) have increased the pressure on forex broker companies in China by carrying out stringent vigilance over the capital flows.
Various foreign brokerage companies in the Chinese market are searching for ways to take their money out of the country. The government is working on closing loopholes and it is building pressure on WFOEs (Wholly Foreign-Owned Enterprises) to prevent violation of capital control laws. And with Donald Trump’s recent decision to escalate tariffs on Chinese imports, the pressure on foreign companies in China is not going to reduce by any amount.
Due to the intensifying trade war between China and the US, the Chinese authorities are trying their level best to maintain the value of yuan to a certain level. Hence, all the measures to prevent capital flight outside of the country are being taken to retain US dollars in China. Even after the continuous battle between brokers and regulators in China, several Forex brokers are enjoying a solid client base in the country.
Many Australian based brokers such as ASIC Australia Forex brokers are operating in China. Due to the lucrative client base and business growth, the forex brokers are trying their level best to deal with their challenges in China.
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