China's Trade Liberalization Efforts in 2019

China Forex: What are the general guidelines and key focuses for SAFE's Current Account Department in 2019?

Liu Bin: The Current Account Department will adhere to the guideline of facilitating and liberalizing cross-border trade and investment，while guarding against risks from cross-border capital flows. The emphasis in 2019 will be put on ensuring regulatory compliance and the authenticity of transactions，as well as maintaining the basic equilibrium in the balance of payments. The department will also strive for higher-level convenience on current account transactions to better serve the real economy without creating systemic risks.   

China Forex: In early 2019 SAFE launched a pilot project to facilitate foreign exchange receipts and payments in the Guangdong-Hong Kong-Macao area as well as Shanghai and Zhejiang province. It supports banks to further ease measures in handling trade receipts and payments for creditworthy enterprises. What support measures are available in these areas and what is in store under the project in future?

Liu Bin: The project is a move to make the economy more open. Eligible banks and enterprises will enjoy greater convenience in the examination of documents，trade-related foreign exchange receipts，refunds of remittances and information verification for foreign exchange payments. This is to encourage self-discipline and compliance among market players and to stimulate the market by cutting operating costs.

The results of the pilot project will be reviewed and specific measures will be improved. In the future there will be a broader rollout of the initiative while the foreign exchange regulator continues to promote trade and investment liberalization and facilitation.

China Forex: What other new measures will be introduced in 2019 to boost convenience for businesses?

Liu Bin: There are five areas of focus. The first priority is facilitating new forms of trading，including cross-border e-commerce. On the premise that risks are under control，the authentic and compliant capital settlements will be more convenient. Second，online registration of enterprises with foreign exchange receipts and payments for trade in goods will be extended to areas nationwide. SAFE will also launch pilot programs in some areas to computerize the filing of foreign-related tax payments on trade in services. Fourth，there will be simplified regulation of the foreign exchange businesses by insurance institutions，especially the regulation of