On the morning of July 31, the State Administration of Foreign Exchange (SAFE) held a video conference on foreign exchange administration for the second half of 2020, to convey and study the guiding principles of the meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee held on July 30 and implement the decisions and arrangements of the CPC Central Committee and the State Council on economic and financial work. The meeting reviewed the work in the first half, analyzed the economic, financial and foreign exchange situations both domestic and abroad, and made arrangements for the priorities of foreign exchange administration in the second half. Pan Gongsheng, secretary of the CPC Leadership and administrator of the SAFE delivered the work report. Members of the CPC Leadership and deputy administrators in Beijing attended the meeting.
According to the meeting, in the year to date, foreign exchange authorities, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, have been earnestly implementing the decisions and arrangements of the CPC Central Committee and the State Council, and further deepening foreign exchange reform and opening up to support epidemic control and economic and social development, with a focus on effectively preventing and controlling cross-border capital flow risks and safeguarding economic and financial security, which have yielded positive results. First, efforts are expected to step up to enforce full, rigorous self-discipline of the Party. Foreign exchange authorities have been raising the awareness of political organs and firmly upholding general secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and upholding the Party Central Committee's authority and its centralized, unified leadership. Foreign exchange authorities have been implementing the guiding principles in general secretary Xi Jinping's instructions and replies, and the decisions and arrangements of the CPC Central Committee and the State Council, in an effort to build loyal and responsible professional teams with integrity and high qualities. Second, full support has been given to epidemic control and economic recovery. Foreign exchange authorities have introduced convenient foreign exchange policies, simplified processes for foreign exchange businesses such as import and export of anti-epidemic supplies, the capital account receipts and cross-border financing, effectively meeting the needs for foreign exchange related to epidemic control. Third, foreign exchange reform and opening up has been deepened. While implementing the 12 facilitation measures adopted at the State Council executive meeting, foreign exchange authorities have been expanding the pilot regions and scope of foreign exchange receipts and payments facilitation. Foreign exchange authorities have been accelerating the foreign exchange system reform for building the international financial center in Shanghai, the Guangdong-Hong Kong-Macao Greater Bay Area and the Hainan Free Trade Port to serve the key regional development strategies of the state. Fourth, the foreign exchange market has been stable. Foreign exchange authorities have been improving the two-faceted management framework of "macro-prudence and micro-regulation" for the foreign exchange market and severely cracked down on breaches of laws and regulations on foreign exchange, effectively blocking risks arising from external shocks. Fifth, operations of foreign exchange reserves are prudential and robust. Foreign exchange reserves have been kept above US$ 3 trillion.
As was stressed at the meeting, in the second half, foreign exchange authorities will need to fully implement the guiding principles of the recent meeting of the Political Bureau of the CPC Central Committee, and work tirelessly to fulfill the targets and tasks for completing the building of a moderately prosperous society in all respects, by better coordinating COVID-19 control, promoting economic and social development, ensuring stability on six fronts and security in six areas and stepping up foreign exchange administration efforts.
The priorities for foreign exchange administration in the second half were set at the meeting. First, foreign exchange authorities will firmly uphold general secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and uphold the Party Central Committee's authority and its centralized, unified leadership, and further enforce full, rigorous self-discipline of the Party. In building "a model organ that is trusted by the CPC Central Committee and satisfies the general public", foreign exchange authorities will take the opportunity to raise the awareness of political organs, continue to clean up undesirable work styles and exercise more rigorous discipline and uphold the leadership of the CPC in all respects and at all stages. Second, foreign exchange authorities will deepen foreign exchange reform and opening up to support regular epidemic control and economic and social development. The authorities will need to fully implement all foreign exchange facilitation measures, expand piloting for trade receipts and payments facilitation, and advance electronic filing for taxation regarding foreign exchange payments for trade in services. They will explore reform of cross-border investment management for PE investment funds and further steadily expand two-way opening-up and connectivity of the financial market. Third, they will continue to forestall and defuse heavy financial risks associated with foreign exchange and guard against cross-border capital flow risks. They will strengthen macro-prudential management of cross-border capital flows, improve regulation of the foreign exchange market, and protect the legitimate rights and interests of foreign exchange consumers and investors. They will take a "zero tolerance" stance on foreign exchange breaches and crimes such as underground banks and cross-border gambling to safeguard an orderly and healthy foreign exchange market. Fourth, they will improve foreign exchange reserve operations and management with Chinese characteristics to ensure the security, flows, and preservation as well as appreciation of assets. Fifth, they will be more committed to study key topics such as foreign exchange administration reform and development during the 14th Five-Year Plan period, deepen the reforms to streamline administration, delegate powers and improve the services, improve the multi-level balance of payments statistical system and advance the building of "digital foreign exchange administration" and "secure foreign exchange administration".
Officials of the deputy director general level and above from departments and units of the SAFE's organs attended the meeting at the main venue. Attendees also included officials from the discipline inspection and supervisory unit in the People's Bank of China dispatched by the CPC Central Commission for Discipline Inspection and the National Supervisory Commission, Financial Audit Bureau I of the National Audit Office, and relevant departments of the People's Bank of China. SAFE branches (administrative offices) attended the local parallel sessions. (End)