Beijing, Mar 25: China, the world's biggest recipient of foreign direct investment, has further eased rules governing the flow of overseas funds into the communist nation including broadening the array of funding sources that foreign investors can use to establish joint ventures. Announcing the new set of rules, the State Administration of Foreign Exchange (SAFE) said the move would allow easier flow of FDI into China.

The new rules, which include a vastly improved list of funding sources that foreign investors can use as their stakes in Sino-foreign joint ventures and clarify procedural matters regarding FDI-related forex administration, will come into effect on April one, state-run China Daily reported.
Foreign investors that have not yet established enterprises in China can now open four types of special forex accounts - investment, procurement, expenditure and guarantee - to meet their operational needs.
They can, with SAFE's approval, use deposits in non-resident non-cash personal accounts opened in China as their stakes in the joint ventures or use funds in offshore accounts opened at designated Chinese banks for the same purpose without permission from SAFE. Bureau Report