Bolstering Technological Support to Propel Reform and Opening-Up in Foreign Exchange Sector

CHINA FOREX: In 2025, what measures and initiatives were implemented by the Science and Technology Department (hereinafter referred to as the Department) of the State Administration of Foreign Exchange (SAFE) to bolster the high-quality development of foreign exchange administration through technological empowerment?

ZHANG Tiecheng: In 2025, the Department adhered to the principle of coordinating development and security. It vigorously advanced the development of "digital foreign exchange administration" and "secure foreign exchange administration", while exploring the development of "smart foreign exchange administration". We continued to expand the application scenarios of the cross-border financial service platform and promote the optimization and integration of foreign exchange-related application functions. It strengthened solid safeguards for cybersecurity, data security, and operational safety, thereby providing robust technological support for the high-quality development of foreign exchange administration.

Scenario innovation and application expansion have catalyzed a new paradigm for cross-border financial services. In 2025, the Department remained committed to the principle of serving the people through foreign exchange policies, continuously deepening the development of the cross-border financial service platform and actively advancing inclusive and digital finance. During the year, two new application scenarios were launched, three existing scenarios were upgraded, and the pilot implementation of multiple initiatives was further expanded. Firstly, a new application scenario for verifying the background of new offshore international trade was introduced. This facilitated banks' access to international logistics data and mitigated challenges in verifying the authenticity of offshore trade. Pilot programs were conducted in 16 branches, including the Shanghai branch. Additionally, a new scenario for trade financing and settlement in bonded zones was launched. This enhanced banks' capacity to review trade backgrounds and was piloted in the Chongqing branch. Secondly, within the scenario of enterprise exchange rate risk management services, a derivative business guarantee and credit enhancement function was added. Government-backed financing guarantees were leveraged to support credit enhancement services for small and micro enterprises seeking exchange rate risk hedging. Pilot programs were conducted in the Zhejiang and Ningbo branches. In the application scenario of export credit insurance policy financing, new functions such as "Easy Credit Insurance for Small and Micro Enterprises" financing were introduced, further increasing insurance products eligible for policy-based financing. In the application scenario of authenticity review for capital account receipts and payments facilitation, a new function for publishing and managing bank-side spot-check data was introduced, with pilot implementation in the Guangdong branch. Thirdly, the application scenario of enterprise exchange rate risk management services was rolled out nationwide. The pilot scope of the port cloud warehouse receipt financing scenario was extended to the Shanxi branch. The pilot program for simplified domestic freight payment in foreign exchange was expanded to the Guangxi branch.

By the end of 2025, the cross-border financial service platform had launched 15 application scenarios supporting various cross-border financial services, including accounts receivable financing, credit granting, cross-border settlements, and exchange rate risk management. The platform served over 160,000 enterprises, predominantly small and medium-sized enterprises. It facilitated financing exceeding US$460 billion and supported convenient foreign exchange payments totaling over US$2.6 trillion. The platform continuously provided intelligent, efficient, secure, and convenient cross-border financial services for both banks and enterprises.

In 2025, the Department adhered to technology and data empowerment, actively responded to various foreign exchange administration reforms and regulatory requirements, and refined various business systems. In terms of facilitation reforms, the systems for trade in goods and services were optimized. These improvements further facilitated high-quality and compliant enterprises in handling business and supported the classification and identification management of service trade entities. The personal system was upgraded to facilitate foreign exchange transactions for Chinese residents of Hong Kong and Macao, and support electronic processing of permits for carrying foreign currency cash. In terms of the reform of the banking sector's foreign exchange operations, the Specifications for Collecting Data on Banks' Foreign Exchange Risk Transaction Reports were issued. Technical connection with banks was initiated to support banks in submitting data for foreign exchange risk transaction reports. In terms of high-standard opening-up, efforts were made to support the implementation and effectiveness of the cross-border investment and financing reforms, launch relevant functions for overseas lending under the integrated domestic and foreign currency cash pool for multinational enterprises, and improve functions such as the registration of direct investment-related agreements. In terms of the construction of the balance of payments statistical system, support was provided for the implementation of the 2025 version of the System for the Statistics of External Financial Assets, Liabilities and Transactions. Data collection and statistical systems were upgraded, and the scope of reporting entities was continuously expanded. In terms of ongoing and ex-post regulation, monitoring indicators for goods trade and capital accounts were optimized to improve regulatory precision and effectiveness. The off-site inspection system introduced a function allowing self-maintenance of external data. Capabilities for processing large-scale and complex data were strengthened, and methods for screening abnormal clues were enriched. In the exploration of "smart foreign exchange administration", surveys were conducted to assess large-model application initiatives by banks and local branches. Practical exploration of large-model technology routes was carried out. Six categories of application scenarios were proposed: knowledge Q&A, data analysis, risk monitoring, policy evaluation, process optimization, and office assistance.

Enhanced capabilities and firm safeguards ensured cybersecurity, operational stability, and data security. In 2025, the Science and Technology Department thoroughly implemented General Secretary Xi Jinping's important thought on building China into a st