The State Administration of Foreign Exchange (“SAFE”) and the Ministry of Commerce (“MOFCOM”) have recently released policies in relation to the relaxation of cross-border capital account items. SAFE issued Huizongfa [2011] No.38 (“Circular 38”) providing detailed implementation guidelines for settlement of cross-border capital account transactions using RMB. Meanwhile, the MOFCOM has issued a Draft Notice to spell out the principles and policies on the use of RMB for foreign direct investment (“FDI”) into China by foreign investors for public comments.