China's forex regulator projects trade growth despite global headwinds
China's foreign exchange regulator expects goods and services trade to expand and cross-border investment to stay active, and plans new policies to facilitate trade and open financial markets.
China's foreign exchange regulator has said it expects the country's trade in goods and services to continue expanding and cross-border investment to remain active, even as it acknowledged a complex external environment.
The State Administration of Foreign Exchange (SAFE) set out the outlook in its first-half Balance of Payments report, alongside a series of planned policy measures aimed at facilitating trade and broadening foreign participation in domestic financial markets.
On goods trade, the regulator expects growth to be driven by products linked to artificial intelligence and green technology. Services trade is also projected to rise, with China promoting exports of technology and digital services while anticipating an increase in service imports.
Foreign investment into China is expected to improve as global capital diversifies into yuan-denominated assets, according to the report's policy outlook. SAFE said it will promote two-way opening and the internationalisation of the yuan.
The authority said it will focus on building a foreign exchange management system it described as more convenient, more open, safer and smarter. It also plans to step up monitoring of cross-border capital flows and to deploy artificial intelligence in efforts to crack down on illegal foreign exchange activities.