Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 52

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 52
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 application of Circular 142 in certain areas and allows a Foreign-Invested Enterprise registered in such areas
to use the RMB capital converted from foreign currency registered capital for equity investments within the PRC.

On February 13, 2015, SAFE promulgated the Notice
on Further Simplifying and Improving the Administration of the Foreign Exchange Concerning Direct Investment, or SAFE Notice 13, which
became effective on June 1, 2015. Pursuant to SAFE Notice 13, instead of applying for approvals regarding foreign exchange registrations
of foreign direct investment and overseas direct investment from SAFE, entities and individuals will be required to apply for such foreign
exchange registrations from qualified banks. The qualified banks, under the supervision of SAFE, will directly examine applications and
manage registrations.

On March 30, 2015, SAFE promulgated SAFE Circular
19, to expand the reform nationwide. SAFE Circular 19 came into force and replaced both Circular 142 and Circular 36 on June 1, 2015.
SAFE Circular 19 allows foreign-invested enterprises to make equity investments by using RMB funds converted from foreign exchange capital.
However, Circular 19 continues to prohibit foreign-invested enterprises from, among other things, using RMB funds converted from foreign
exchange capital for expenditure beyond the enterprise’s business scope, providing entrusted loans, or repaying loans between non-financial
enterprises.

On June 9, 2016, SAFE issued SAFE Circular 16,
which took effect on the same day. Compared to SAFE Circular 19, SAFE Circular 16 provides that, in addition to foreign exchange capital,
foreign debt funds and proceeds remitted from foreign listings should also be subject to the discretional foreign exchange settlement.
In addition, it also lifted the restriction that foreign exchange capital under the capital accounts and the corresponding RMB capital
obtained from foreign exchange settlement should not be used for repaying the inter-enterprise borrowings (including advances by a third-party)
or repaying bank loans in RMB that had been sub-lent to the third-party.

In January 2017, SAFE promulgated the Circular
on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, or Circular 3,
which stipulates several capital control measures with respect to the outbound remittance of profit from domestic entities to offshore
entities, including (i) under the principle of genuine transaction, banks shall check board resolutions regarding profit distribution,
the original version