By following the work plans of the CPC Central Committee and the State Council, the State Administration of Foreign Exchange (SAFE) has been committed to serving the real economy, facilitating cross-border trade and investments, intensifying regulation of the foreign exchange market, cracking down on foreign exchange irregularities since 2016, in a bid to safeguard the healthy and benign order in the foreign exchange market. In accordance with the Regulations of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases involving enterprises and individuals violating foreign exchange regulations are announced as follows:

Case 1: Evasion of foreign exchange by Ningbo Dacheng International Trade Co., Ltd.

In August and September 2015, Ningbo Dacheng International Trade Co., Ltd. fabricated the entrepot trade contracts with many overseas companies using other companies' expired bills of lading and set transaction prices that were 5-20 times higher than the market prices, illegally transferring funds overseas for 15 times, involving a sum of USD 119 million.

Such behavior violated Articles 12 and 14 under the Regulations of the People's Republic of China on Foreign Exchange Administration, and was considered evasion of foreign exchange. Involving a huge amount of money, the behavior had an adverse impact on society and severely interrupted the order in the foreign exchange market. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 22.81 million was imposed on the company.

Case 2: Evasion of foreign exchange by Grand China Logistics Holding (Group) Co., Ltd.

From January to July 2015, Grand China Logistics Holding (Group) Co., Ltd. signed false charter contracts with its connected companies, domestic or overseas, and made false freight invoices, illegally transferring overseas funds of USD 45.0690 million.

Such behavior violated Articles 12 and 14 under the Regulations of the People's Republic of China on Foreign Exchange Administration, and was considered evasion of foreign exchange. Involving a huge amount of money, this had an adverse impact on society and severely interrupted the order in the foreign exchange market. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 20.75 million was imposed on the company.

Case 3: Evasion of foreign exchange by Hangzhou Zhiyu Information Technology Co., Ltd.

From September 2015 to January 2016, Hangzhou Zhiyu Information Technology Co., Ltd. (formerly known as Wholesale Inc.) fabricated import transactions, and repeatedly used its contracts and invoices to make 44 payments in the total amount of USD 39.6770 million under "prepayment", leading to illegal outflows of large-sum foreign exchange.

Such behavior violated Article 12 under the Regulations of the People's Republic of China on Foreign Exchange Administration and Article 3 under the Guidance on Foreign Exchange Administration under Trade in Goods, and was considered evasion of foreign exchange. Involving a huge amount of money, this had an adverse impact on society and severely interrupted the order in the foreign exchange market. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 10 million was imposed on the company.

Case 4: Evasion of foreign exchange by Harbin Yabuli Timber Co., Ltd.

From April to October 2015, Harbin Yabuli Timber Co., Ltd. repeatedly used expired Declaration Form for Import, changed the amount in the Form, used the information of other companies on their Declaration Forms for Import, and made false contracts and invoices for fabricated imports with foreign companies, illegally transferring funds of USD 18.92 million overseas.

Such behavior violated Articles 12 and 14 under the Regulations of the People's Republic of China on Foreign Exchange Administration and Article 3 under the Guidance on Foreign Exchange Administration under Trade in Goods, and was considered evasion of foreign exchange. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 2.93 million was imposed on the company.

Case 5: Evasion of foreign exchange by Techman Electronics (Changshu) Co., Ltd.

In August 2015, to evade the authenticity review by the bank, Techman Electronics (Changshu) Co., Ltd. repeatedly used 7 copies of invoices, illegally transferring USD 3.82 million overseas through two banks.

Such behavior violated Article 14 under the Regulations of the People's Republic of China on Foreign Exchange Administration and Article 15 under the Guidance on Foreign Exchange Administration under Trade in Goods, and was considered evasion of foreign exchange. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 1.17 million was imposed on the company.

Case 6: Evasion of foreign exchange by a Mr. Che from Guangdong

From December 2015 to January 2017, to transfer funds overseas and evade regulation, Mr. Che, native of Guangdong, transferred funds denominated in RMB into the accounts of 84 persons separately, including a Mr. Liu, and used their quotas for foreign exchange purchases to transfer USD 4.3552 million under personal travel and allowances for family maintenance into Che's personal accounts in Australia and Hong Kong.

Che's behavior violated Article 7 under the Measures for the Administration of Individual Foreign Exchange and was considered evasion of foreign exchange that had adverse impact on society. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 1 million was imposed on Che.

Case 7: Illegal arbitrage by a Mr. Zhao from Shandong

From February to December 2015, to exchange his company's funds for a large sum of foreign exchange, Mr. Zhao, native of Shandong, transferred the money in his company's account into the individual accounts of 41 employees separately and purchased foreign exchange through online banking by using his employees' individual quotas for purchasing foreign exchange. Then Zhao asked his employees to withdraw the foreign exchange and transfer them into Zhao's personal account through 439 deals as time deposits, which amounted to USD 2.0468 million.

Zhao's behavior violated Article 7 under the Measures for the Administration of Individual Foreign Exchange and was considered illegal arbitrage. In accordance with Article 40 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 705,800 was imposed on Zhao.

Case 8: Illegal trading of foreign exchange by a Mr. Liang from Guangdong

From November 2014 to October 2016, to evade taxes, Mr. Liang, native of Guangdong, transferred the money for exports in the amount of HKD 24.03 million into the overseas account of an underground bank through 82 deals. Later the underground bank transferred RMB 19.56 million into Liang's and his relatives' accounts through 94 deals.

Liang's behavior violated Article 30 under the Measures for the Administration of Individual Foreign Exchange and was considered illegal trading of foreign exchange. Involving a huge amount of money, this had an adverse impact on society and severely interrupted the order in the foreign exchange market. In accordance with Article 45 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 586,600 was imposed on Liang.

Case 9: Illegal foreign exchange trading by a Mr. Lou from Henan

In March 2016, to illegally transfer the funds overseas, Mr. Lou, native of Henan, transferred RMB 7.1 million into 11 personal accounts controlled by an underground bank. The underground bank then exchanged the money for foreign exchange and transferred the foreign exchange amounting to AUD 1.426 million into an overseas account designated by Lou.

Lou's behavior violated Article 30 under the Measures for the Administration of Individual Foreign Exchange and was considered illegal trading of foreign exchange that has interrupted the order in the foreign exchange market. In accordance with Article 45 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 235,000 was imposed on Lou.

Case 10: Evasion of foreign exchange through split transactions by a Mr. Geng from Shanxi

From February to June 2016, to illegally transfer assets overseas, Mr. Geng split the RMB funds and transferred the funds into the personal accounts of 31 persons. Then Geng had the funds exchanged for foreign exchange through online banking by using the annual quotas of the 31 persons for purchasing foreign exchange, and transferred the funds into his personal account in Hong Kong, which amounted to HKD 11.78 million.

Geng's behavior violated Article 7 under the Measures for the Administration of Individual Foreign Exchange and was considered evasion of foreign exchange. In accordance with Article 39 under the Regulations of the People's Republic of China on Foreign Exchange Administration, an administrative punishment of RMB 150,000 was imposed on Geng.