Elevating Law-Based Governance and Expectation Management to Safeguard High-Quality Development of…

CHINA FOREX: The 2025 Central Conference on Law-Based Governance systematically outlined the key tasks in advancing the Law-Based Governance for the current period and beyond. How has the General Affairs Department (Policies and Regulations Department) (hereinafter referred to as the Department) implemented the guiding principles of the Conference and comprehensively advanced the rule of law in foreign exchange management in the following dimensions: legislation, law enforcement, compliance, and team building? The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) has set "a higher stage in building a socialist country under the rule of law" as a major objective for the 15th Five-Year Plan (FYP) period. What plans does the Department have for 2026 to further strengthen the rule of law in foreign exchange administration?

YANG Jun: In 2025, the Department thoroughly studied General Secretary Xi Jinping's important instructions on the rule of law and the guiding principles of the Central Conference on the Law-Based Governance, and comprehensively advanced the rule of law in the foreign exchange field. By improving legislation, ensuring fair law enforcement, upholding strict compliance, and strengthening education and training, the Department continuously consolidated the legal foundations for foreign exchange administration. Firstly, the Department strengthened the regulatory system for foreign exchange administration. New progress was made in the revision of the Regulations of the People's Republic of China on Foreign Exchange Administration. A work plan for reviewing and streamlining foreign exchange regulations was formulated to promote the integration of regulations in key business areas. Institutional rules and the overall framework were improved in areas including facilitating foreign exchange fund settlement, deepening the reform of foreign exchange administration for cross-border investment and financing, capital pooling operations, fund management for overseas listings, statistics of external financial assets and liabilities and transactions, and the interbank foreign exchange market. Secondly, the Department reinforced guidance and supervision over administrative law enforcement in foreign exchange administration. We improved the top-level design for administrative law enforcement across the system of the State Administration of Foreign Exchange (SAFE), deployed administrative law enforcement oversight, strengthened guidance and supervision over administrative licensing, inspections, and penalties, so as to conduct law enforcement in a strict, standardized, impartial and civilized manner. Thirdly, the Department carried out rule-of-law education across the entire system. We organized law-based administration training programs throughout the system, studied Xi Jinping Thought on the Rule of Law in depth, conducted qualification tests for law enforcement personnel. These efforts strengthened the legal awareness and capabilities of the law enforcement officers, and enhanced their ability to perform duties in accordance with the law. Fourthly, the Department actively publicized the rule of law and promoted nationwide respect for and compliance with the law. We organized participation in the national collection and exhibition of animated micro-video works on the rule of law, with multiple works successfully selected.

In 2026, the Department will fully leverage the crucial role of the rule of law in advancing the high-quality development of foreign exchange administration. Firstly, the Department will resolutely implement General Secretary Xi Jinping's important instructions on the rule of law. We will organize ongoing and in-depth study and implementation of Xi Jinping Thought on the Rule of Law and the CPC Central Committee's decisions and arrangements on law-based governance across the system, and formulate overall plans for the legal work in foreign exchange administration during the 15th FYP period. Secondly, the Department will continue to improve the regulatory framework for foreign exchange administration. Efforts will focus on advancing the revision of the Regulations of the People's Republic of China on Foreign Exchange Administration. Regulatory systems in key and emerging foreign exchange business areas will be continuously improved. Thirdly, the Department will improve the administrative law enforcement management across the SAFE system, continuously promote the awareness of strict, standardized, impartial and civilized law enforcement, and enhanced the standardization of administrative law enforcement within the SAFE system. The Department will implement the Regulations on Supervision over Administrative Law Enforcement, continue to improve administrative law enforcement supervision across the system, refine enforcement mechanisms, and promptly rectify issues in law enforcement. Fourthly, the Department will continue to strengthen training and work guidance on law-based administration across the system, and significantly enhance the legal thinking and legal literacy of leading officials.

CHINA FOREX: The 2025 Central Economic Work Conference explicitly called for improving the expectation management mechanism and boosting public confidence. How will the Department implement this requirement? What is the work plan for 2026?

YANG Jun: In 2025, the Department consistently upheld the correct political direction and orientation of public opinion, explored the establishment of a multi-tiered and three-dimensional information release and public opinion guidance mechanism, increased the supply of authoritative information, and actively supported efforts to stabilize market expectations and boost public confidence. Firstly, the Department effectively publicized the achievements in the foreign exchange field during the 14th Five-Year Plan (FYP) period. It supported the SAFE leadership in participating in a series of themed press conferences on the successful completion of the 14th FYP,organized themed campaigns highlighting the achievements of the 14th FYP through the WeChat official account, fully demonstrating reform and development results in the foreign exchange sector during this period. Secondly, the Department strengthened the interpretation of foreign exchange conditions and policies. Centering on the release of key data such as the balance of payments, banks' purchases and sales of foreign exchange, foreign exchange reserves, and external debt, around major policy rollouts, including the nine measures to deepen the reform of foreign exchange administration for cross-border investment and financing, and the nine measures to support the stable development of foreign trade. Moreover, the Department employed a combination of press conferences, briefing sessions, expert interpretations, and policy infographics to reinforce positive publicity with a focus on stabilizing expectations. In 2025, we coordinated 310 proactive outreach activities. Thirdly, the Department improved communication and feedback channels with the public and actively responded to market concerns. In 2025, we responded to 29 media inquiries and guided branches to address over 4,000 online consultations and suggestions through official websites. Fourthly, the Department proactively organized media engagement activities. A media research tour themed Foreign Exchange Services for the Real Economy: Improving Quality and Effectiveness was held. Business departments were invited to introduce various foreign exchange facilitation reform measures. Journalists were invited to hold discussions with banks and enterprises, as well as conduct on-site visits to enterprises. These activities helped the media to gain a deeper understanding of foreign exchange business and policies, enabling more accurate and accessible interpretations and reports on foreign exchange-related topics.

In 2026, the Department will continue to serve as the primary platform for public communication on foreign exchange issues, intensify interpretation and guidance on key market concerns, and support a smooth start to the 15th FYP. Firstly, the Department will organize publicity activities related to the 105th anniversary of the founding of the CPC, and publicize the measures to implement the 15th Five-Year Plan Outline, guiding principles of the Central Economic Work Conference and the two sessions. Secondly, the Department will continue to refine policy communication methods. A mechanism that integrates outreach communication with policy release will be adopted to enhance the precision of policy transmission and the effectiveness of implementation. Thirdly, the Department will organize media research tour activities in 2026. We will strengthen ongoing communication with the media, share stories of foreign exchange reform and development, and consolidate positive public opinion momentum for advancing the 15th FYP.

CHINA FOREX: The CPC Central Committee has identified easing burdens on the grassroots level as a key task in the effort to combat formalism. What steps did the Department take to reduce burdens in 2025, and what outcomes were delivered? What further measures will the Department implement in 2026?

YANG Jun: In 2025, the Department resolutely implemented the spirit of the eight-point decision on improving Party and government conduct, advanced burden-reduction efforts at the grassroots level with perseverance, and made steady progress in addressing formalism and bureaucratism. Firstly, we coordinated theestablishment of a working mechanism to actively promote the "one-stop efficient service" in foreign exchange administration. Focusing on pain points, difficulties, and bottlenecks in foreign exchange policy implementation and internal management across the SAFE system, we strengthened research and investigation, collected relevant issues and feedback, and organized the formulation of solutions. As a result, some issues have already been resolved, and more business policies have been further improved. Secondly, we actively promoted burden reduction for branches. In strict accordance with the Provisions on Addressing Formalism to Reduce Burdens on the Grassroots Level issued by the General Office of the CPC Central Committee and the General Office of the State Council, we solicited opinions and suggestions from 36 branches. A rectification task ledger was established and its implementation was supervised. we also led efforts to streamline and optimize report and statement submissions required from branches. Following the principle of "abolishing all non-essential reporting requirements", we cut more than 40% of reporting requirements, effectively lightening the reporting burden on branches. Thirdly, we established an electronic seal management system, which enabled online stamping of administrative licensing documents and improved the efficiency of online processing for foreign exchange administrative approvals. Pilot operations are currently underway in selected branches.

In 2026, we will continue to reduce burdens on the grassroots level, ensuring that improvements in work style deliver tangible benefits to frontline operations and people's livelihoods. Firstly, we will continue to promote the "one-stop efficient service". We will maintain regular mechanisms for collecting opinions, address pain points, difficulties, and bottlenecks in foreign exchange administration, advance efforts to ease grassroots workloads, with the aim of enhancing overall governance capacity, and continuously improving the business environment. Secondly, we will further upgrade and optimize relevant information system functions to facilitate the handling of related business. Thirdly, we will promote burden reduction for the SAFE head office. Drawing on experience and results from branch-level burden-reduction efforts, we will explore initiatives to reduce burdens and enhance efficiency, based on actual conditions in daily management and business operations across the SAFE head office, thereby improving the overall performance.

YANG Jun Director-General of SAFE's General Affairs Department (Policies and Regulations Department)