Several European companies in China have been unable to remit dividends abroad following the introduction of new exchange controls, the first indication that Chinese attempts to curb capital outflows are causing problems for foreign businesses.
The EU Chamber of Commerce in Beijing said the payment difficulties experienced by European companies were “disruptive to business operations”.
The measures, which included complex approval procedures for sending money out of the country, were introduced on November 28. They appear designed to shore up China’s foreign exchange reserves following a period of unprecedented outflows of capital that have sent the renminbi down almost 6 per cent against the US dollar this year, putting it on track for its worst year on record.