China Advances Forex Reform and Trade Openness to Bolster Global Economic Resilience
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China is stepping up reforms in its foreign exchange (forex) sector and implementing high-standard opening-up measures to support global economic and trade resilience, Zhu Hexin, deputy governor of the People's Bank of China and head of the State Administration of Foreign Exchange (SAFE), said at the Financial Street Forum 2025.
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China has intensified deep reforms in its forex system, focusing on making cross-border trade, investment, and financing more efficient. By enhancing market mechanisms and resource allocation, various entities—including multinational enterprises and domestic companies with overseas listings—can manage exchange-rate risk and optimize capital deployment. In 2024, China's forex market turnover rose 37 percent compared to 2020, and foreign-related balance of payments increased 64 percent, reflecting rapid progress in integrating domestic and international capital flows.
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SAFE is rolling out policies to implement integrated cash-pooling programs, which combine domestic and foreign currency management for multinational firms, as well as reforms for managing funds of domestically listed companies abroad. These initiatives aim to streamline liquidity management, reduce operational friction, and create a more predictable environment for global institutional investors navigating China's markets.
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Beijing continues to serve as a testing ground for pioneering forex policies. Over the past three years, the city's goods trade has consistently exceeded 3.6 trillion yuan, with service trade growing nearly 10 percent annually. By piloting high-level cross-border trade and investment facilitation initiatives, including policy upgrades for programs like “KeHuiTong,” Beijing positions itself as a central hub linking domestic markets with global capital and reinforcing China's role in international trade and finance.
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Zhu highlighted China's broader role in stabilizing global supply chains and fostering cooperative growth. China's industrial depth, scale of trade, and commitment to innovation—spanning digital economy, artificial intelligence, and renewable energy—help maintain robust international trade networks. In 2024, the value of China's digital services exports exceeded $400 billion, underlining the country's significance in global digital trade. By combining market openness with structured risk management, China aims to provide a stable, transparent, and resilient environment for international trade and investment.
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