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How to pay in dollars between domestic enterprises
When domestic enterprises pay in dollars, they are subject to strict foreign exchange control. According to the Regulations of People's Republic of China (PRC) on Foreign Exchange Management, foreign currency circulation and direct pricing and settlement are prohibited in China unless special permission is obtained. Article 8 stipulates that the overseas provision of commercial loans is restricted, and the banking financial institutions can only implement it after obtaining approval, while other domestic institutions need to apply to the foreign exchange administration first and submit relevant information such as assets and liabilities, and the foreign exchange administration will decide whether to approve it according to the specific circumstances of the applicant. It is worth noting that even if an application is filed, SAFE reserves the right not to approve it. Therefore, enterprises must abide by these laws and regulations when making dollar payments to ensure that all trading activities meet the requirements of foreign exchange management.