The 2024 National Foreign Exchange Administration Work Conference was convened in Beijing from January 4 to 5, 2024. During the conference, participants thoroughly studied and implemented the principles outlined in the Central Economic Work Conference and the Central Financial Work Conference. They also summarized the foreign exchange administration work in the year 2023, analyzed the current financial and foreign exchange situation, and made deployments of the key tasks for 2024. Zhu Hexin, the Administrator of the State Administration of Foreign Exchange (the SAFE), and head of its party-leading group, delivered a work report. Members of the party leading group and the Deputy Administrators as well as the Chief Economist of the SAFE attended the conference. Zhou Xiaoying, Deputy Leader of the 18th Circuit Guidance Group of the CPC Central Committee on Themed Education, also attended the conference and offered guidance.

During the conference, it was pointed out that in 2023, the SAFE unwaveringly implemented the decisions and arrangements of the CPC Central Committee and the State Council, coordinated development and security, and advanced reform and opening-up in the foreign exchange market to boost economic recovery. The conference highlighted the SAFE’s effective measures in maintaining the stable operation of the foreign exchange market and the security of the national economy and finance, as well as the new progress achieved by the SAFE across various areas of work. It was noted that the year 2023 witnessed a basic equilibrium in the balance of payments, while the operation of the foreign exchange market remained basically stable amidst a complex and challenging landscape. Firstly, the Party’s leadership has been further strengthened. The SAFE rigorously carried out the themed education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly studied, disseminated, and implemented the guiding principles of the Central Financial Work Conference. The SAFE also rigorously and resolutely undertook rectification tasks assigned by central discipline inspections, better strengthened primary-level party organizations, and took concrete actions to resolutely advocate the establishment of both Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole, as well as the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. It resolutely upheld Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and upheld the authority of the Party Central Committee and its centralized, unified leadership. Secondly, there has been a continual enhancement in the quality and effectiveness of foreign exchange administration services for the real economy. The SAFE enhanced policy supply for the facilitation of cross-border trade and investment, with a comprehensive set of nationwide initiatives already in place. Additionally, policies further facilitating cross-border financing have been extensively endorsed, fostering the development of innovative and high-tech enterprises. The SAFE extended support to private enterprises, aiding their two-way opening of “bringing in” foreign investment and “going global” with outward investment. Moreover, foreign exchange services have been optimized, ensuring greater convenience for individual foreign exchange transactions. High-quality foreign exchange support services were provided for major events such as the Hangzhou Asian Games and the Chengdu FISU World University Games. The SAFE drove the continuous enhancement of digital capital account services in the banking sector and helped diversify the application scenarios for cross-border financial services. Further efforts have been made to deepen the construction of the foreign exchange market and improve enterprise risk hedging services. In support of regional opening-up and innovation, the SAFE piloted innovative foreign exchange administration policies in key areas such as the Guangdong-Macao in-depth cooperation zone in Hengqin, and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone as well as Xiong’an New Area, expanding the pilot areas of the policies for high-level opening-up of cross-border trade and investment. Thirdly, foreign exchange supervision has become more precise and effective. The SAFE strengthened macroprudential management, which includes implementing counter-cyclical measures to balance supply and demand in the foreign exchange market. The SAFE enhanced supervision on key businesses and entities, with a heightened focus on collaborative regulatory efforts. It systematically advanced reforms in the banking sector’s foreign exchange operations, and prioritized technological empowerment to enhance the effectiveness of supervision. The SAFE also took stringent measures to crack down on illegal activities, such as underground banks, cross-border gambling, and export tax evasion related to foreign exchange violations. Fourthly, the SAFE has been improving the operation and management of foreign exchange reserves, with the total reserve size stably maintained above USD 3.1 trillion throughout the year.

It called for the comprehensive implementation of the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. Furthermore, the decisions and arrangements established at the Central Economic Work Conference and the Central Financial Work Conference shall be diligently implemented. The conference also highlighted the significance of upholding and strengthening the Party’s overarching leadership in financial work. It reiterated an unwavering commitment to pursue the distinctive path of financial development with Chinese Characteristics, guided by the principles of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. The objective is to effectively balance high-quality development and robust security, steadily advance deep-level reforms, and foster high-standard opening-up in the foreign exchange sector. Besides, the conference underscored the importance of facilitating cross-border trade and investment, enhancing the integrated management of the foreign exchange market through the two-pronged “macro-prudential management with micro regulation” framework, and ensuring the security, liquidity, and value appreciation of foreign exchange reserve assets. Overall, the conference highlighted the pivotal role of the foreign exchange administration sector in supporting China’s pursuit of high-quality development on its path to modernization.

The conference outlined key tasks for foreign exchange administration in 2024. Firstly, the SAFE will be committed to upholding and strengthening the centralized and unified leadership of the Party Central Committee over financial and foreign exchange work. More efforts will be dedicated to studying, disseminating, and implementing the guiding principles of the Central Financial Work Conference. Furthermore, SAFE will keep on thoroughly implementing the rectification tasks assigned by the central discipline inspections. This involves continuous efforts to uphold integrity, discipline, and anti-corruption measures while focusing on improving the competences of officials who are professional and loyal to our Party. Secondly, the SAFE will advance reforms and opening up in the foreign exchange sector, with an aim to better serve the high-quality development of the real economy. With a focus on supporting technological innovation enterprises and micro, small, and medium-sized enterprises (MSMEs), the SAFE will enhance cross-border trade and investment facilitation. Efforts will be directed toward expanding the coverage of facilitation policies in terms of foreign exchange receipts and payments for high-quality enterprises, thus propelling the standardized and innovative development of new trade formats. Additionally, the SAFE will improve the integrated capital pooling trials for multinational corporations' both domestic and foreign currencies, while systematically advancing the two-way opening of China’s financial markets, particularly by enhancing the quality of capital account opening. The SAFE will establish an open and diverse foreign exchange market with robust functions and orderly competition. Furthermore, the SAFE will continue to improve exchange rate risk management services for enterprises. It will provide special support for the development of key areas such as the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area to foster high-level free trade pilot zones. Thirdly, the SAFE will mitigate the risks associated with cross-border capital flows. This involves strengthening macro-prudential management and expectation guidance, enhancing monitoring, early warning, and response mechanisms for cross-border capital flows, and resolutely correcting pro-cyclical and one-sided behaviors. The SAFE will maintain the RMB exchange rate at a reasonable and balanced level, ensuring its fundamental stability, and safeguard the basic equilibrium of the balance of payments. Fourthly, The SAFE will achieve more comprehensive regulatory coverage in the foreign exchange sector. The objective is to regulate foreign exchange businesses in accordance with the law and ensure thorough oversight. The normalization of regulatory practices will be reinforced, and technological tools will be employed to enhance supervisory effectiveness. The SAFE will improve the management mechanism for cross-border transactions, emphasizing principles such as authenticity, diversity, due diligence, safety, and efficiency. The SAFE will also prudently advance the reform of bank foreign exchange operations, and rigorously crack down on any illegal or non-compliant activities in the foreign exchange market. Fifthly, the SAFE will improve the management of foreign exchange reserves with Chinese characteristics, ensuring the safety, liquidity, and value preservation and appreciation of these assets. Sixthly, the SAFE will solidify the foundation of foreign exchange administration. This involves strengthening the legal framework for foreign exchange management, accelerating the establishment of a modernized international balance of payments statistical system, comprehensively streamlining the operational procedures of the SAFE through institutional reforms, exploring the implementation of intelligent foreign exchange administration, and conducting in-depth research on key issues related to foreign exchange.

Head officials of relevant departments, provincial branches, and institutions of the SAFE, as well as colleagues accredited to the Discipline Inspection and Supervision Team, attended the conference. Representatives from the Office of the Central Financial and Economic Affairs Commission, the Office of the Central Financial Commission, the General Office of the State Council, and the National Audit Office were also presented at the conference upon invitation.