The State-Owned Commercial Airline Regimen And Chinese Travel Ban
The implementation of entry and exit ban for China is another measure taken by the Chinese government to stem further economic pressure on its currency. On November 24th, the Chinese government announced that it was considering a “local exit and entry ban” in response to the depreciation of the renminbi against the dollar. This measure involves the partial closing down of the so-called offshore labour market in China. The local exit and entry ban will affect both local and foreign investors seeking to make profits in China by working abroad.
The re-export of goods from China to Korea and Japan has already been restricted in recent times due to the depreciation of the CHeng Doh stocks. Re-exporting to these two countries will also be affected by the new restrictions. On April 6th, China’s Ministry of Finance released a statement saying that it would impose a total ban on cross-border financing from Korean and Japanese banks until the CHeng Doh stock return level is restored. In addition, on April 7th, the Ministry of Commerce released a notice for all Chinese citizens travelling to South Korea and Japan to register for a local exit pass before leaving China. On April 8th, The Financial Services Commission announced that it has imposed a similar ban on Chinese citizens travelling to South Korea and Japan as well.
This is the first time that the re-export of goods from China to other member states has been suspended since July 2021. The reasons for the new restrictions are not yet clear. The new restrictions affect mainly the amount of money that can be transferred between the two countries. There is no immediate word from the Chinese authorities on the exact impact of the restrictions on remittances or on the routing of funds. However, the measures are thought to have been implemented to strengthen the control of illegal transactions through the currency markets.
The most important consequence of the new visa restrictions on traveling to China is the loss of numerical targeting by the Chinese authorities for internal travelers originating in Hong Kong, Taiwan and Macau. According to the latest information, the total number of foreign tourists visiting China last year was close to 700 million. The majority of these tourists were either Chinese citizens, foreigners who had acquired Chinese citizenship or foreigners traveling with their possessions such as vehicles, goods and services. Most of the visitors were either retired people who had retired to China or foreigners who had been forced to retire in China and who thus had to travel in a far away destination to live. Thus, the impact on the flow of capital into the country has been significantly reduced.
The suspension of all flights to and from China was immediately put into action by the State-Owned Air Fleet. In a statement issued on the same day, it said that all the flights would now be operated by government-owned carriers. “This is an important step taken to maintain the standard rate of flights to China for domestic flights and to protect the interests of our passengers and our airline partners against disruption of flights and congestion of the flights in China,” the statement added. It is expected that the market will gradually improve once the capital of China starts flowing again.
The State-Owned Air Fleet made the announcement in response to what they perceives as a rise in the number of flights to China from overseas airports. The increase in flight traffic has prompted the industry to invest more in upgrading the airport facilities to handle the influx of the large number of passengers. A major portion of the profits made by the aviation sector in China goes into upgrading the existing facilities. They are also imposing travel restrictions on Chinese national, including those travelling with their property.
The latest move to impose travel restrictions on Chinese citizens comes at a time when China is trying to bolster its fledgling tourism industry. The tourism industry in China is in need of much infrastructure development and upgrading. The increase in foreign tourists as well as the high number of package holidays that are now available in China are all contributing factors to the growing need for more infrastructure and better accommodation in the country.
If you were planning to travel to China, the time has come for you to get your passport renewed before leaving. Before leaving, you should check if your current passport is still valid in your country of origin or will work in your new country. You should also check if there are any travel advisories that you have not signed up for, as China has some very strict policies regarding travel to their country. Failure to comply with these travel restrictions can lead to serious consequences including fines or jail terms.