Article 2 The term "overseas direct investment" as mentioned in these Provisions refers to the act that a domestic institution establishes or obtains the ownership, control or management right of an existing enterprise or project overseas by means of establishment (sole proprietorship, joint venture and cooperation), merger and acquisition, and equity participation with the approval of the competent department of overseas direct investment.
Article 3 The State Administration of Foreign Exchange and its branches (hereinafter referred to as the SAFE) shall supervise and manage the foreign exchange receipts and payments and foreign exchange registration of overseas direct investment by domestic institutions.
Article 4 Domestic institutions may use their own foreign exchange funds, qualified domestic foreign exchange loans, RMB to purchase foreign exchange or physical and intangible assets and other sources of foreign exchange assets approved by the SAFE for overseas direct investment. Profits from overseas direct investment by domestic institutions can also be retained overseas for their overseas direct investment.
The self-owned foreign exchange funds mentioned in the preceding paragraph include foreign exchange funds in current account, foreign exchange funds in capital account of foreign-invested enterprises and foreign exchange funds in other projects.
Article 5 The State Administration of Foreign Exchange may, according to China's international balance of payments and overseas direct investment, adjust the scope and management methods of foreign exchange funds for overseas direct investment by domestic institutions, as well as the relevant policies on profit retention of overseas direct investment.