On November 28, at the 2020 China Finance Society Academic Annual Meeting and China Financial Forum Annual Meeting, Zheng Wei, deputy director of the Foreign Exchange Administration, stated that the Foreign Exchange Administration will respond to changes in the international economic and financial situation during the "14th Five-Year Plan" period and in the future. China's development strategy requires research and promotion of new foreign exchange management reform and opening measures to serve the new development pattern.

Specifically, it includes the steady and orderly promotion of capital account opening, the establishment of a new higher-level open foreign exchange management system, and the further improvement of the national governance system and modernization level of governance capabilities under open conditions.

　　In terms of advancing the opening up of capital projects, Zheng Wei said: First, we will comprehensively relax foreign investment access in the direct investment sector, and earnestly implement the pre-access national treatment plus negative list management model.

Implement and promote the signing of bilateral and multilateral trade and investment agreements, innovate direct investment methods, and promote the reform of foreign exchange management methods for qualified foreign limited partners (QFLP) and qualified domestic limited partners (QDLP) to better meet the cross-border investment needs of market entities .

The second is to promote the unified coordination of cross-border financing transactions and exchange links, formulate a policy framework for cross-border investment by private equity investment funds, realize full-scale cross-border financing macro-prudential and industry negative list management, and improve the level of cross-border financing facilitation.

The third is to accelerate the improvement of the level of internationalization of the financial market, promote the realization of an open policy for securities investment in line with international practices, issue QDII quotas on a regular basis, implement the pilot program of “cross-border financial management”, and integrate financial market opening channels.

　　Zheng Wei said that in the medium and long term, under the premise of anti-money laundering, anti-terrorist financing, and anti-tax evasion, except for a few transactions involving national security and high-risk areas, the basic freedom of two-way cross-border capital flow will be realized, and the establishment of a sound individual The management system for cross-border capital transactions meets the reasonable needs of individuals for foreign investment and foreign exchange use.

　　Regarding the construction of a new higher-level open foreign exchange management system, Zheng Wei pointed out that it will promote high-level trade liberalization and facilitation, and promote the comprehensive transformation of foreign exchange management from pre-examination to post-inspection, and promote the realization of efficient, safe and low-cost cross-border Trade settlement.

Promote the risk assessment-oriented, improve the classification management of trade entities, and form a virtuous circle of "the more compliant the more independent" and "the more honest the more convenient".

　　In addition, achieve high-level cross-border investment and financing liberalization and facilitation, comprehensively relax and remove restrictions on the scale of cross-border investment and financing and capital use, expand the pilot reform of foreign debt registration management, and launch pilot projects for multinational companies' integrated domestic and foreign currency fund pools.

　　In terms of further improving the level of modernization of the national governance system and governance capabilities under open conditions, Zheng Wei emphasized that macro-prudential efforts should be made to prevent large-scale cross-border capital flows from triggering systemic financial risks, and micro-supervision efforts should be made to maintain the foreign exchange market competition order and consumers’ legal Rights, and severely crack down on illegal activities in the foreign exchange field with a "zero tolerance" attitude.

At the same time, promote the construction of technology-enabled "digital external management" and "secure external management", build a cross-border capital flow monitoring system based on artificial intelligence and big data technology, and improve the ability of cross-border blockchain platforms to serve foreign exchange receipts and payments and cross-border financing .

In addition, improve the legal system in the field of financial openness, promote the revision of foreign exchange management regulations, improve the system of foreign economic and trade laws and rules, and strengthen domestic cross-departmental and international cross-border supervision cooperation.

　　Author: Duchuan