Understanding the foreign exchange regime

My US-based company is just about ready to finalise the set-up of a wholly foreign-owned enterprise (WFOE) in a second-tier city in China, but I am unsure of the issues regarding PRC foreign exchange control. Should I open a Renminbi account, a foreign currency account, or both? What does Chinese law say about the conversion of items in current and capital accounts? How can I reduce the amount of trapped cash? Generally I guess I'm asking:

As a new WFOE entrant, what should I be aware of in terms of the foreign exchange regime in China and how can I best set up my account(s) to avoid capital-draining pitfalls?

The domestic perspective

Chinese Law requires that an overseas institution or individual that makes direct investments in the territory of the People's Republic of China shall handle the registration formalities at a foreign exchange administrative branch upon the approval of the competent department. Specifically, the registration must be initiated within 30 days of acquiring the business licence (the equivalent of the “Certificate of Incorporation”). If the registration is granted, the foreign exchange administrative branch will issue to the enterprise a “Foreign Exchange Registration IC Card”.

To direct overseas capital into China, the overseas institution or individual must also file an application to the same foreign exchange administrative branch to establish a foreign exchange capital account. Upon its approval, the bank may then establish the said account, in which overseas capital could be deposited. Subsequently, a Chinese Certified Public Accountant must be hired to conduct an Asset Evaluation to make certain that the foreign currency, real property and other overseas interests contributed by the foreign investor(s) are in line with State Foreign Exchange Laws and Regulations.