• Index number:
  • Dispatch date:
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
  • Name:
    Strengthening Conviction and Working Steadfastly to Promote the Steady and Rapid Development of the National Economy
Strengthening Conviction and Working Steadfastly to Promote the Steady and Rapid Development of the National Economy

A symposium of branch directors of the State Administration of Foreign Exchange (SAFE) was recently held in Shenyang, Liaoning province. The symposium discussed foreign exchange administration work since the beginning of 2009, analyzed the current foreign exchange situation, and studied and planned the next stage of foreign exchange administration work. Yi Gang, administrator of the SAFE, and Deng Xianhong, deputy administrator of the SAFE, each delivered speeches at the symposium.   
The symposium pointed out that since the beginning of this year, under the firm leadership of the Central Committee of the CPC and the State Council and the direct guidance of the Party Committee of the Peoples Bank of China, the foreign exchange administration departments have been earnestly carrying out and putting into practice the scientific outlook on development, and have made new achievements with consolidated conviction and concerted effort, which have played an active role in coping with the global financial crisis and promoting the steady and rapid development of the national economy.  
First, normal foreign trade activities of enterprises have been further facilitated so as to mitigate the difficulties of export enterprises. The SAFE has earnestly put into practice the policy measures of the State Council on promoting economic development with financial levers and stabilizing external demand, improved on-line inspection and management for the collection and settlement of foreign exchange for exports, and has taken measures to encourage banks to carry out trade financing. These measures are conducive to accelerating foreign exchange collection and settlement for exports and capital turnovers as well as for stabilizing the foreign trade activities of enterprises. 
Second, energetic support has been given to the go-global strategy and trade facilitation has been promoted. The SAFE issued the Circular on Related Issues Regarding Foreign Exchange Administration of Overseas Loans Granted by Domestic Enterprises and the Regulations on Foreign Exchange Administration of Overseas Direct Investment of Domestic Institutions, which further expanded the scope of lenders and sources of funds for overseas loans, streamlined the ratification and exchange procedures for overseas loans, and improved the relevant statistical monitoring and risk prevention mechanism. The examination and verification measures of foreign exchange fund sources for overseas direct investment have been altered from ex ante examination to ex post registration. The administration system for outward remittances of funds has been adjusted from a ratification system to a registration system. Currently, the overseas direct investment of domestic institutions is basically free from exchange procedure restrictions, which, to a great extent, has further facilitated the relevant procedures.  
Third, the statistics and monitoring of the balance of payments have been improved, and balanced administration and risk prevention of cross-border fund flows have been strengthened. The SAFE improved the foreign exchange administration and monitoring system for direct investment, revised the measures for the statistics of foreign exchange assets and liabilities of Chinese-funded financial institutions, standardized the opening, use, and other activities of domestic foreign exchange accounts of overseas institutions, and improved the supervision of cross-border fund flows. The SAFE also improved the working mechanism of the Global Financial Crisis Response Team, completed the appraisal of commercial banksimplementation of the foreign exchange administration regulations, and revised and issued the Measures for Appraisal of Banks Implementation of Foreign Exchange Administration Regulations. 
Fourth, construction of the foreign exchange market has been promoted and efforts by enterprises to avoid exchange rate risks have been supported. Since the beginning of this year, the SAFE has approved three currency brokerage companies to enter the foreign exchange brokerage business, three financial companies to have access to the inter-bank foreign exchange market, and seven finance companies of enterprise groups to engage in spot settlement and sales of foreign exchange, in order to activate transactions on the foreign exchange market and facilitate the use of foreign exchange by transnational enterprise groups. The SAFE actively carried out the netting clearing business of inquiry trading on the inter-bank foreign exchange market in order to lower market operation risks and to increase market activity. 
Fifth, administrative procedures for the examination and approval of foreign exchange business have been improved, and efforts to adjust the foreign exchange regulations have been strengthened. The SAFE delegated the examination and approval authority for ten foreign exchange businesses under the capital account from the headquarters to its branches so as to facilitate the handling of the business by enterprises. Efforts were strengthened to straighten out the existing foreign exchange administration regulations; 91 regulatory documents on foreign exchange administration were declared null and void, thus facilitating the efforts of enterprises and banks to grasp the relevant foreign exchange administration regulations.    
Sixth, foreign exchange fund flows in breach of the regulations have been actively investigated and punished so as to maintain good order on the foreign exchange market. The SAFE successively organized and implemented special examinations and investigations of foreign exchange business, and made concerted supervisory efforts in various departments to further improve the supervision of abnormal foreign exchange fund flows. The SAFE continued to carry forward the spirit of revitalizing business with integrity and credibility, to do a good job for the disclosure of illegal information about foreign exchange transactions, and to make major efforts by harshly cracking down on illegal acts and acts in breach of the regulations. 
Seventh, the safety of foreign exchange reserve assets has been guaranteed, and the operation and management of foreign exchange reserves have been improved. The SAFE persisted in prioritizing risk prevention, conducted deep analysis of market changes and economic trends, earnestly summarized the experiences and lessons in coping with the international financial crisis, and actively explored operation and management systems and mechanisms that are suited for implementation in China.   
Eighth, education on building clean government and construction of an internal control system have been strengthened. The campaign of the Caution and Education Month for Building Clean Government was carried out in the headquarters of the SAFE in April, and the year of 2009 has been designated as the Year of Standardized Administrative Enforcement of the SAFE. Vigorous efforts have been made to improve the internal management system. For key departments, businesses, and procedures involving administrative approval, self-examination activities have been conducted in line with the requirements of the Administrative Licensing Law and other relevant provisions. The functions of various positions in the administrative enforcement departments have been examined in an all-round manner, the enforcement procedures have been standardized, and an appraisal and assessment mechanism and responsibility investigation mechanism for administrative enforcement have been established.  
It was agreed at the symposium that Chinas economy has entered a critical period of stabilizing and recovery. Generally, the nations foreign exchange collection and payments on the whole so far this year have been stable, with a certain amount of net inflows and no massive outflows of capital. In the upcoming period, the balance of payments and foreign exchange collection and payments will still confront relatively great uncertainty and complexity. In this regard, the foreign exchange administration will continue to adhere to the policy orientation of preventing massive outflows of funds and warding off the sudden inflow of funds. Meanwhile, under the guidance of the scientific outlook on development, the various plans of the CPC Central Committee and the State Council shall be resolutely implemented. Continued efforts will be made to emancipate the mind, actively upgrade the concepts of foreign exchange administration, further strengthen service-oriented awareness in foreign exchange administration, and incorporate cost control and market-oriented awareness into foreign exchange administration, in order to constantly improve social transparency, service quality, and the management level of foreign exchange administration, to maintain the security of the national economy and finance, and to promote the sound and rapid development of the national economy. Priority will be given to the following areas:   
First, so as to facilitate foreign exchange collection and payments of various market entities, efforts will be made to further enhance service-oriented awareness in foreign exchange administration. The SAFE will step up the reform of the writing-off and verification system for exchange collection and payments for imports and exports, improve foreign exchange administration for trade in services, streamline procedures for submitting tax certificates for external payments in foreign exchange for trade in services, conduct research on the formulation of measures for the administration of overseas deposits of foreign exchange collections from exports, steadily promote product innovation on the foreign exchange market, and provide enterprises with more risk prevention instruments.  
Second, priority will continue to be placed on broadening capital outflow channels, and the reform of capital account administration will be steadily pushed forward. Research will be carried out on expanding the scope of centralized domestic operations of foreign exchange funds of enterprise groups so as to further facilitate the efforts of enterprise groups to raise the efficiency of fund use. The regulations on foreign exchange administration of QFII and DFII will be improved in order to provide domestic residents with more channels for investment. The SAFE will also team up with relevant departments to promote the development of the domestic capital market.  
Third, intensified efforts will be made for system integration, and the statistical monitoring system for cross-border funds will be improved. The SAFE will make major efforts to develop the foreign exchange account system and will continue to study the integration of data and the system in order to provide better services for cross-border fund flows and statistical monitoring and analysis of the balance of payments. Efforts will be made to perfect the statistical and declaration system of the balance of payments, improve the statistics of overseas assets, liabilities, profits, and losses of financial institutions, enhance the timeliness and transparency of statistics of the balance of payments, study the establishment and perfection of the statistical monitoring system for external claims and liabilities, and improve the system functions such as trade credit registration, direct investment, etc.     
Fourth, balanced management of cross-border funds will be strengthened, and the contingency mechanism for the balance of payments will be further improved. Efforts will be made to investigate the building of an overall claims and liabilities management system, to persist in and perfect the assessment system for the implementation of foreign exchange administration policies by banks, to consolidate the effects of such assessment, to reinforce the construction of an early warning risk system for the balance of payments, and to improve the multi-level dual-direction early warning framework for risks in the balance of payments. Intensified efforts will be made to investigate major and significant cases and to struggle against illegal acts or acts in breach of the regulations, such as the operation of underground money shops and network speculation in foreign exchange. Special inspections and investigations will be carried out to facilitate the operations of enterprises involved in exchange transactions in compliance with the relevant regulations.  
Fifth, efforts will be made to further improve the operation and administration of foreign exchange reserves. The SAFE will continue to improve the operation and management mechanism for foreign exchange reserves to meet the specific requirements of the Chinese economy, further intensify studies on the operation and development patterns of economic cycles and the financial market, and improve the long-term profitability of reserve assets based on maintaining asset security and liquidity.
Sixth, efforts will be made to further increase the transparency of foreign exchange administration and promote the construction of the foreign exchange administration regulation system. Intensified efforts will be made to straighten out the regulations for a better understanding of the foreign exchange administration policies and regulations by market entities. Efforts will also be made to strengthen communications between the SAFE, the general public, and the relevant departments in order to create a sound external environment for foreign exchange administration.
Seventh, the construction of clean government and of an internal management system will be further strengthened. Efforts will be made to strengthen supervision of leading cadres and to incorporate the building of clean government into the comprehensive responsibility target management of Party organizations and the administrative leadership teams at various levels. Party members and leading cadres at various levels should earnestly carry out the principle of dual responsibilities for one post, strengthen construction of the internal management system, and intensify training for cadres and education on the building of clean government.
At the symposium it was required that the foreign exchange administrations at various levels shall thoroughly implement the scientific outlook on development under the guidance of Deng Xiaoping Theory and the important thought of the Three Represents, shall consolidate conviction, work steadfastly, and make great endeavors to achieve all the annual targets, so as to make greater contributions to the steady and rapid development of the national economy and to greet the 60th anniversary of the founding of New China with practical work and outstanding achievements.
Participants at the symposium included the leaders, chief economists, chief accountants, chief leaders of all departments, the Party Committee, and all institutions of the SAFE, as well as the general deputy directors (deputy directors) responsible for foreign exchange work in all branches of the foreign exchange administrative departments.

The English translation may only be used as a reference. In case a different interpretation of the translated information contained in this website arises, the original Chinese shall prevail.

Contact Us | For Home | Join Collection

State Administration of Foreign Exchange