SCIO briefing on China's foreign exchange receipts and payments data for H1 2025

Phoenix TV:

Recently, the State Council made arrangements to replicate and expand pilot measures adopted in the pilot free trade zones. What further steps will SAFE take in this regard? Thank you.

Li Bin:

I would like to invite Mr. Xiao to answer this question.

Xiao Sheng:

Thank you for your attention to the reform work of pilot free trade zones. SAFE has always attached great importance to the development of pilot free trade zones. We have introduced a series of policies and measures to advance high-standard opening up and high-quality development in these zones. In 2022, SAFE launched high-standard opening-up pilot programs for cross-border trade and investment in certain areas of the pilot free trade zones in Shanghai, Guangdong, Hainan and Ningbo. Some of these pilot policies were later expanded to Beijing, Jiangsu and other provinces and cities.

Recently, to further implement the strategy of upgrading pilot free trade zones and to release the benefits of institutional innovation on a larger scale, SAFE plans to extend its series of innovative policies to more pilot free trade zones nationwide. They mainly include the following two aspects:

On the one hand, we will further expand the pilot policies for cross-border trade facilitation. These policies mainly include five measures: supporting banks in optimizing settlement for new forms of international trade, expanding the scope of netting settlement for trade receipts and payments, and facilitating foreign exchange receipts and payments under the current account, among others. The focus is on optimizing business review procedures, reducing documentary requirements, streamlining processing procedures, and helping companies conduct cross-border trade more conveniently.

On the other hand, we will further promote high-standard opening up in cross-border investment and financing. These policies include five measures, such as the pilot program for foreign exchange management for Qualified Foreign Limited Partners (QFLP), allowing banks to directly handle external debt registration, and permitting parent and subsidiary companies in financing and leasing to share external debt quotas. These policies will help further broaden cross-border investment and financing channels, improve efficiency, support stable foreign investment, and promote high-standard opening up. For example, the pilot policy on foreign exchange management for QFLPs is mainly aimed at further supporting and facilitating long-term overseas funds to conduct industrial and real-economy investments in China through private equity, thereby better supporting the development of Chinese enterprises, especially technology-based firms.

Next, SAFE will continue piloting innovative foreign exchange policies in pilot free trade zones, spearheading deeper reforms and high-standard opening up in the foreign exchange sector. We will keep improving financial and foreign exchange services while strengthening cross-border regulatory capacity as China opens wider to the world, supporting the high-quality development of the real economy. Thank you.

Xing Huina:

Please raise your hand if you still have a question. One last question, please.