In 2017，China witnessed a shift in its cross-border capital flows as net outflows gave way to a basic balance. During the past year the global economy showed more signs of recovery while international financial markets were considerably more stable. On the domestic front，China’s economy gained momentum as supply side structural reforms took shape，enabling higher quality growth. At the same time，the renminbi exchange rate index remained basically stable.

In 2018，the global economy will continue its recovery trend and China’s cross-border capital flows will maintain their overall balance. China’s economic development has entered a new era，marked by a consolidation of fundamental improvements achieved in past years. From the external perspective，the global economy and international financial system will see less stress and more stability.

In an effort to give readers a glimpse of regulatory plans for 2018，China Forex conducted a series of interviews with key officials at the State Administration of Foreign Exchange (SAFE). Based on these interviews it can be seen that SAFE will deepen the marketization reform of the renminbi exchange rate while ensuring that the currency remains at a reasonable and balanced level. SAFE’s top priority will be the promotion of trade liberalization and facilitation as authorities strive to ensure the authenticity and legal compliance of transactions. SAFE will steadily promote the convertibility of the currency under the capital account by improving macro-prudential management and micro-level supervision related to cross-border capital flows. SAFE will also promote capacity building for the management of foreign exchange reserves and support China’s key national strategies，such as the Belt and Road Initiative.