Legal analysis: The State Administration of Foreign Exchange and its branches (hereinafter referred to as the SAFE) supervise and manage the foreign exchange receipts and payments and foreign exchange registration of overseas direct investment by domestic institutions. Domestic institutions can use their own foreign exchange funds, qualified domestic foreign exchange loans, RMB foreign exchange purchases or physical and intangible assets and other sources of foreign exchange assets approved by the foreign exchange bureau 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. The State Administration of Foreign Exchange may, according to China's international balance of payments and overseas direct investment, adjust the scope of sources of foreign exchange funds for overseas direct investment by domestic institutions, management methods and relevant policies on profit retention of overseas direct investment.

Legal basis: Article 9 of the Foreign Trade Law of People's Republic of China (PRC), foreign trade operators engaged in the import and export of goods or technologies shall register with the competent foreign trade department of the State Council or its entrusted institutions; However, unless the laws, administrative regulations and the provisions of the competent foreign trade department of the State Council do not require filing and registration. The specific measures for filing and registration shall be formulated by the competent foreign trade department of the State Council. If a foreign trade operator fails to register in accordance with the provisions, the customs shall not go through the formalities of customs declaration and clearance of import and export goods.