On 19 May 2014, the State Administration of Foreign Exchange (SAFE) released the long awaited Foreign Exchange Administrative Provisions on Cross-Border Security and its implementation guidelines (collectively the New SAFE Regulations). The New SAFE Regulations will take effect on 1 June 2014 and will supersede a series of regulations previously issued by SAFE and bring substantial changes to the current cross-border security regime (also known to some as the foreign security regime).

This bulletin highlights the key changes to the current regime, features of the new regime, as well as some additional structuring options.

For the purpose of this bulletin, security includes both proprietary security and guarantee, and security provider shall be construed accordingly; and onshore means mainland China, and offshore means outside mainland China.