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Tianjin's citywide pilot program launched on August 1

Effective August 1, 2026, Tianjin will officially launch a citywide pilot program for high-level opening-up in cross-border trade. This is not a pilot limited to specific areas, but rather a policy initiative that will benefit all foreign trade enterprises across the city.

According to data from the Tianjin Branch of the State Administration of Foreign Exchange, as of August 3, the first batch of 20 pilot banks had simultaneously launched a series of streamlined services, with the total volume of pilot transactions exceeding $10 million.

For cross-border e-commerce sellers, the key elements of this pilot program are: net settlement of differences, facilitation of foreign-related salary payments, optimization of advance payment and cost-sharing arrangements, and exemption from registration for special remittance returns.

If you’re facing a similar situation—where foreign exchange settlement has always been a challenge in your cross-border e-commerce business—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you identify the most suitable foreign exchange solutions for your business model.

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Net Settlement: The Key Tool for Saving Money and Time

In the past, cross-border e-commerce sellers and individual overseas buyers had to settle payments for goods, shipping costs, and rebates on a transaction-by-transaction basis, resulting in high processing fees and significant exchange rate losses.

The new policy allows high-quality enterprises to settle various types of receivables and payables with the same foreign counterparty on a net settlement basis, which, in principle, may be conducted once per quarter.

This means you no longer need to pay separate cross-border transfer fees for every small transaction; the frequency of fund transfers has been significantly reduced, and both foreign exchange costs and settlement fees have decreased accordingly.

For example: A seller shipped 10 batches to the same U.S. buyer in the first quarter, with a total merchandise value of $500,000, shipping costs of $30,000, and rebates of $20,000. After netting, the seller only needs to settle the net amount of $510,000, rather than making 10 separate transactions.

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Loopholes have also been opened regarding compensation for foreign-related positions and the allocation of advance payments

Many cross-border e-commerce companies have local operations teams overseas. In the past, paying employees required submitting documentation on a transaction-by-transaction basis, which was a cumbersome process.

The new policy allows banks to determine foreign exchange quotas for foreign employees that are exempt from review based on the company’s registered list and compensation documentation. For foreign exchange purchases, payments, receipts, and settlements within these quotas, there is no need to resubmit supporting documents.

In addition, procedures for advance payments and cost-sharing under trade in services have also been streamlined. Cost-sharing among different entities within a group no longer requires complex prior approval.

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Relaxed Entry Requirements Benefit Science and Technology Innovation Companies

The eligibility criteria for pilot banks are: a compliance rating of Grade B or higher in foreign exchange operations over the past three years, with a rating of at least Grade B+ for at least two of those years.

The authority to determine which enterprises qualify as high-quality has been delegated to banks to exercise through their own due diligence. Generally, enterprises are required to have no record of penalties from the State Administration of Foreign Exchange in the past two years; however, for science and technology innovation enterprises and new business models—such as high-tech enterprises, specialized, refined, distinctive, and innovative enterprises, and cross-border e-commerce businesses—the required period of business operation has been reduced from two years to one year.

This means that cross-border e-commerce startups—even those that have been in operation for only a short time but have a clear business model—also have the opportunity to be included on the list of high-quality enterprises and benefit from preferential policies.

It is important to note that inclusion in the pilot program does not mean institutions can operate without restrictions. Banks will conduct ongoing monitoring based on the three principles of customer due diligence, and any institution found to have engaged in suspicious transactions will still be removed from the list.

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Actual Impact on Sellers and Recommendations

The launch of the Tianjin pilot program sends a clear signal: the government is using institutional innovation to reduce compliance costs for cross-border e-commerce and encourage more companies to engage in cross-border trade through legitimate channels.

There are three direct benefits for sellers: first, improved cash flow efficiency; second, reduced foreign exchange losses; and third, lower compliance risks.

We recommend that sellers who already have a business entity or warehouse operations in Tianjin contact their bank as soon as possible to learn about the process for obtaining "high-quality enterprise" status.

Sellers based outside Tianjin need not worry. Pilot programs like this are typically rolled out nationwide once they prove successful, so it’s only a matter of time before major cross-border e-commerce hubs like Shenzhen, Guangzhou, and Yiwu follow suit.

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