Optimizing Foreign Exchange Management under the Capital Account and Facilitating Cross-Border Investment and Financing

General Secretary Xi Jinping has-emphasized that finance is one of the matters of national significance and is crucial to achieving Chinese modernization.The capital account is an important area of China's financial reform and opening-up,as well as the building of a financially robust country.We should focus on increasing the supply of facilitation policies and services,controlling the pace of opening-up,improving the quality of openingup,and better serving Chinese modernization through the high-quality development of foreign exchange administration.Recently,to facilitate enterprises,individuals,and other entities in handling foreign exchange business under the capital account,the State Administration of Foreign Exchange(SAFE)has widely solicited views and suggestions from market participants.Based on their feedback,the SAFE has revised and released the Guidelines for the Foreign Exchange Business Under the Capital Account(2024)(hereinafter referred to as the new version of the Guidelines).

The use of renminbi for trade and non-trade denomination and settlement

The use of renminbi for invoicing and settlement intermediaries in foreign-oriented activities is the first step and footstone of internationalization of the Chinese currency. With the appreciation of renminbi in recent years, there has been a growth of renminbi invoicing and settlement in China’s border trades, although the overall amount is small and the development momentum is imbalanced among different regions. The main obstacles come from such factors as VAT rebate policy restrictions and foreign exchange control, insufficient financial services, and under-cultivated willingness among enterprises. Looking from the strategic perspective of strengthening macro-adjustment and enhancing the open economy, it is pressing and would be beneficial to China to promote the renminbi’s invoicing and settlement function. Therefore, following the momentum, we should accelerate the construction of a cross-border renminbi clearing system, create non-discriminative treatment in terms of VAT rebate and exchange control policies, and gradually expand the usage of the renminbi from border trades to general trades and outward investment.

Achieving Coordinated Opening-Up and Security in Foreign Exchange Management in 2024

2023 was the first year of fully implementing the spirit of the 2oth National Congress of the Communist Party of China,and it was a year of economic recovery and development following the transition period of COVID-19 prevention and control in the past three years.Over the past year,under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core,China has withstood external pressures,overcome internal difficulties,and achieved a recovery in the economy.High-quality development has been steadily promoted,and solid steps have been taken in building a socialist modern country in an all-round way.

Elevating Payment Convenience for Foreigners in China:A Seamless Journey in Foreign Exchangee Services

The Central Committee of the Communist Party of China(CPC)and the State Council are committed to enhancing foreign exchange services for expatriates within China's borders.On March 7,2024,the General Office of the State Council unveiled the Opinions on Further Optimizing Payment Services to Elevate Payment Convenience.

Giving Better Play to Functions of Financial Sector in a Progressive,Stable Manner

Xi Jinping,general secretary of the Communist Party of China(CPC)Central Committee,pointed out that security is the prerequisite for development while development is the guarantee of safety,hence we should adopt a holistic approach to development and security.

Decade-long Steadier BOP Position Highlights China's Achievements of Economic Development,Reform and Opening-up in a New Era

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core,the Chinese economy has been on atrack of higherquality development and higher-level opening-up since the 18th Cpc National Congress.Against this backdrop,China has a more solid foundation for a steady balance of payments(BOP)position,which maintains an overall balance in a complex and changing external environment.Theevolvementof BOP over the past decade fully demonstrates China's major achievements of economic development,reform and opening-up in anew era.