I. Legal channels for foreign direct investment.

Two, the use of China current account convertibility into the China market. Common methods include falsely reporting import and export prices, prepaying payment, delaying payment of foreign exchange, parallel loans, and borrowing foreign debts by mistake in advance.

In addition to enterprises, individuals also use personal foreign exchange remittances to mix funds under capital into current accounts and flow into China. This situation used to be quite common, there are three main situations:

(1) The principal or income of overseas investment remitted by domestic residents in the form of non-trade foreign exchange shall be settled in China;

(2) Foreign investors remit money in the name of individuals or authorized agents, and settle foreign exchange in the name of individuals;

(3) The overseas investment company of a foreign-invested enterprise remits funds to the legal representative or members of the board of directors of the domestic foreign-invested enterprise in the name of individual donation, and adopts the method of breaking up the whole into parts to settle foreign exchange as the working capital of the enterprise.

Third, take foreign-funded enterprises in China as the channel.

(a) through the establishment of investment companies or production subsidiaries, joint ventures in China, or in the name of building joint ventures or wholly-owned projects, in the form of registered capital or capital increase of enterprises, raising foreign exchange from abroad and settling foreign exchange.

(2) It is through shareholder loans of foreign-invested enterprises, that is, foreign-invested enterprises make short-term foreign loans and foreign exchange settlement in the form of shareholder loans.

(3) Domestic foreign-funded enterprises and overseas affiliated enterprises cooperate with each other to facilitate the entry of overseas funds through temporary collection of payables, advance receipt of goods, delayed export, etc.

4. Foreign exchange loans and foreign exchange settlement through domestic enterprises.

5. Independent capital allocation of domestic Chinese and foreign banks.

6. Capital market channels.

There are several ways for domestic capital to invest and finance overseas: At present, domestic enterprises mainly invest overseas through direct investment, overseas loans, trade credit and other ways.

In addition to advance payment and deferred payment of trade credit, enterprises often choose overseas equity financing, overseas debt financing and overseas listing for foreign exchange financing.

Legal basis: Article 2 of the Interim Provisions on Domestic Investment of Foreign-invested Enterprises The domestic investment of foreign-invested enterprises mentioned in these Provisions refers to the behavior of Chinese-foreign joint ventures, Chinese-foreign cooperative ventures, foreign-funded enterprises and foreign-invested joint stock limited companies established in China in the form of limited liability companies, which invest in the name of their own enterprises or purchase investors' equity from other enterprises in China.