Key facts
- China expects trade in goods to grow, driven by AI and green technology products.
- China anticipates an increase in service imports and will promote technology and digital service exports.
- Foreign investment into China is expected to improve as global capital diversifies into yuan-denominated assets.
- China will promote two-way opening and yuan internationalization.
- The foreign exchange authority aims to build a more convenient, open, safer, and smarter foreign exchange management system.
- Authorities will increase monitoring of cross-border capital flows and use AI to combat illegal foreign exchange activities.
China's foreign exchange regulator stated on Tuesday that it anticipates continued growth in the country's trade of goods and services, as well as sustained active cross-border investment, despite a complex external environment. The State Administration of Foreign Exchange (SAFE), in its first-half Balance of Payments report, outlined its policy outlook, indicating plans to roll out new measures to facilitate trade and enhance foreign access to domestic financial markets.
The report forecasts growth in trade of goods, attributing this to demand for artificial intelligence and green technology products. Trade in services is also expected to expand, with China aiming to boost exports of technology and digital services while anticipating a rise in service imports. Furthermore, SAFE expects foreign investment into China to improve, driven by a global diversification of capital into yuan-denominated assets. The authority reiterated its commitment to promoting two-way opening and the internationalization of the yuan. SAFE also indicated its focus on developing a foreign exchange management system that is 'more convenient, more open, safer, and smarter.' To achieve this, authorities will intensify their monitoring of cross-border capital flows and leverage artificial intelligence to crack down on illegal foreign exchange activities.