Title:Enhance Political Awareness and Sense of Responsibility Fully Implement Decisions by the CPC Central Committee and the State Council
 

China Forex: At the 18th and 19th CPC National Congress,major decisions and arrangements were made to promote law-based governance. What efforts has SAFE made to promote law-based administration in 2020? What will be your next priorities?

 

Yang Jun: In 2020,we fully implemented the arrangements made by the Central Committee in promoting law-based governance of the country,law-based exercise of state power,law-based administration of government,giving full play to the rule of law as the guarantee for consolidating foundations,stabilizing expectations and bringing long-term benefits. We reinforced our efforts in ensuring that legislation is introduced through well-conceived procedures and that law is enforced strictly so as to advance the modernization of law-based system and capacity for governance in foreign exchange.

 

First,we fully implemented the Constitution,regarding it as the fundamental guideline for our daily activities. Second,we fine-tuned legislation on foreign exchange management and continued to initiate appropriate establishment,revision,abolition,and interpretation. We are fully committed to the principle of scientific,democratic and law-based legislation as well as the concept of system. We also performed concrete and detailed preliminary evaluation. In 2020,we advanced the revision of the Regulation of the People’s Republic of China on Foreign Exchange Administration and issued the Implementation Rules for Optimizing the Business Environment of the SAFE.

 

Third,we scrutinized the administrative law-enforcement on foreign exchange management. We published the Flowchart of Administrative Law Enforcement on Foreign Exchange Management to clarify standardized procedures. We also revised the Administrative Reconsideration Procedures of the SAFE to ensure that the procedures are lawful,standardized and orderly. In doing so we guaranteed and supervised the lawful exercise of powers.

 

Fourth,we carried out the publicity of the rule of law to create a favorable environment for studying,applying and observing the law.

 

In 2021,we will thoroughly implement Xi Jinping Thought on the Rule of Law for a New Era,learn from Xi’s speech at the Central Committee’s Conference on Comprehensively Promoting Law-Based Governance,and manage foreign exchange in accordance with the law. First,we will strengthen the top-level design of the regulatory framework for foreign exchange management and enhance our law-based administrative capacity. We will accelerate the revision of the Regulation of the People’s Republic of China on Foreign Exchange Administration in line with the requirements of “building new systems for an open economy of a higher level”. Second,we will carry out in-depth publicity and education on the rule of law to improve China’s law literacy.

 

China Forex: The 14th Five-Year Plan calls for “accelerating the transformation of government functions” and “deepening the reform to streamline the government,delegate power,and improve government services”. What measures has the SAFE taken to deepen the “reform of government functions”? What is the next step?

 

Yang Jun: “Making market entities more dynamic” is an important goal of China’s socio-economic development set out by the 14th Five-Year Plan; “energizing all types of market entities" is a significant task for comprehensively deepening reform and for building a high-level socialist market economy. In 2020,guided by principle of “Streamlining administration and delegating power,improving regulation,and upgrading services”,we improved our efforts in building a world-class business environment established on market principles and the rule of law. In turn,we were able to further enhance the sense of gain,happiness and satisfaction of market players. The measures we took are as follows: first,we stepped up efforts to streamline administration and delegate more power. Second,we strengthened the exercise of powers in accordance with the law and regulations. Third,we promoted openness and transparency in government services.

 

In 2021,we will further advance the “reform of government functions” in the foreign exchange sector. First,we will continue to fulfil relevant requirements of the Central Committee and the State Council. We will implement the Program for the Division of Key Tasks,which was based on the national video and telephone conferences on deepening the “reform of government functions” and on improving the business environment. We will further streamline administration and delegate power by reducing procedures and materials,applying time limits for proceeding materials and improving the transparency of rules. In this way we hope to fully release the energy of the market.

 

Second,we will refine the regulatory framework with the dual pillars of “macro-prudence” and “micro-regulation”. We will improve the management of cross-border capital flows guided by “macro-prudence”,while strengthen “micro-regulation” of the foreign exchange market with updated supervision methods at the core. We will ensure orderly competition in the foreign exchange market and protect the legitimate rights and interests of consumers. Meanwhile,we aim to protect market players against excessive risk via innovative tools of prudential regulation. We will encourage banks to increase their awareness of self-discipline for the creation of a functional and ordered market.

 

Third,we will optimize government services for foreign exchange management to improve the satisfaction of market entities. To this end we will enhance the sense of service and innovate the way of work. We will also construct a “digital government”,and make sure most administrative licensing matters can be handled as soon as possible through online platforms.

 

Fourth,we will further enhance the transparency in government affairs. We will release improved interpretation of foreign exchange policies to send more positive signals. We will carry out the publicity of important events such as the “two sessions” (the National People’s Congress and the Chinese People’s Political Consultative Conference) and the 100th anniversary of the founding of the CPC. We will also stabilize market expectations and foster favorable public opinion for the reform,development and stabilization of foreign exchange management.