Foreign Exchange Control is also called foreign exchange management.In order to protect the balance of Nation’s international payments and stabilize the exchange rate as well as to protect the development of the State’s economy, the government appoints and authorizes Administration of Foreign Exchange to manage and control the exchange deal, payments,loan,international settlement, rate, market,etc. within the country and organizations, enterprises, groups and individuals by legal, administrative and economical measures.

In order to strengthen the management of the foreign exchange and to retain the balance of international payments, China has established several regulations on exchange control, including Statute for Foreign Exchange Regulations enacted by State Council and it is the highest layer foreign exchange management law currently in China.

The foreign exchange payments or operations of the organizations,individuals, foreign establishments in China and people coming into China should be supervised and managed by Statute for Foreign Exchange Regulations, meanwhile, they should comply with the foreign exchange management norm of China. The principle of "voluntariness to deposit, freedom to withdraw, payment of interests to bank saving deposits, and keeping secret for depositors" shall be implemented for the depositing of foreign exchanges by individuals.

The scope of foreign exchange control:

- Foreign currency is prohibited for circulation and shall not be quoted for pricing or settlement in the territory of the People's Republic of China.

- The payment in and transfer of foreign exchange for current international transactions shall not be subject to the government control or restriction.

- The government adopts a reporting system for balance of payments statistics.

- All foreign exchange receipts of domestic entities for current account transactions shall be repatriated and shall not be deposited abroad in violation of the relevant government regulations without authorization. - Unless otherwise specified by the State Council, all foreign exchange receipts for capital account transactions shall be repatriated.