In 2023，we embark on the first year of fully implementing the guiding principles of the 20th CPC National Congress. Following the guidance of XI Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th CPC National Congress，the State Administration of Foreign Exchange (SAFE) is focusing on themed education that places an emphasis on “studying ideology，strengthening Party consciousness，emphasizing practical experience，and achieving new accomplishments.” With this initiative，we can be sure that our actions align with the decisions of the CPC Central Committee. We stand firm on fundamental principles and are boldly venturing into uncharted territory as we strive for growth and stability. Additionally，we will be consistent in implementing of this new development philosophy in its entirety. We aim to facilitate the high-quality development of cross-border trade by optimizing management，encouraging institutional innovation，and establishing an efficient，stable，and secure cross-border capital settlement environment.

Enhancing Innovative Development to Accelerate High-Standard Opening-Up

With an ever-innovative approach，the SAFE has optimized the business environment and improved systems and mechanisms in the field of foreign exchange to pave the way for a high-quality opening to the world. At the same time，we have actively promoted high-quality cross-border trade and supported ongoing initiatives to increase international engagement.

SAFE is committed to fostering regional innovation and achieving high-standard opening-up. We have taken a holistic approach to development and security. We have implemented high-standard opening-up pilot projects for cross-border trade and investment in four key areas，including the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone，based on regional positioning and the characteristics of international trade. We've implemented new measures to simplify netting settlement and streamline cross-border fund settlement under the current account，making it easier for businesses to manage funds payments and receipts on their own. In addition，we have consistently explored ways to improve the effectiveness of facilitation policies and promoted the introduction of a new framework for an advanced，more accessible economic system.

SAFE is committed to fostering the regulated development of innovative trade formats. To accomplish this goal，we have been making consistent efforts to assist eligible payment institutions and banks in delivering electronic transaction information-based foreign exchange settlement and sale services and related fund payment and receipt services to market participants. In addition，we have pushed for a wider variety of foreign exchange electronic payment services to be made available to customers under the current account，which will allow banks to expand into new markets and broaden their service offerings while keeping risks under control. This initiative will facilitate cross-border e-commerce settlement for micro，small and medium-sized enterprises (MSMEs).

Enhancing Research and Investigation to Optimize Policy Formulation and Implementation

SAFE places a premium on timely，scientific and systematic research to ensure effective policy formulation and optimization. We conduct extensive community-level research and evaluation to provide individuals and businesses with secure，efficient，and cost-effective settlement services.

SAFE routinely investigates incidents and reaches out to the local community. We have established direct contact points with banks to actively listen to their feedback，and we have enhanced the monitoring mechanism for key entities，which now includes nearly 1,000 companies. This has helped us develop a deeper familiarity with the requirements of market participants，resulting in more accurate assessments and decisions.

SAFE conducts targeted investigations to ensure effective policy implementation. We have conducted systematic research on banks and payment institutions to optimize foreign exchange management and strengthen institutional qualifications and electronic system development in response to the new forms of cross-border e-commerce transactions，which are characterized by small transaction amounts，numerous transactions，and digitalization. This provides a sound institutional guarantee for cross-border e-commerce batch，self-service，and standardized settlement. Furthermore，we have established a long-term mechanism with the goal of “we must do practical things for the people”，and we have established specialized research on “uncommon” and “difficult” foreign exchange business scenarios. We have effectively addressed the diverse and complex needs of market participants by studying representative cases.

Enriching Policy Delivery and Reaping Benefits Enhanced Convenience

Aligned with decisions and plans to forge a new development pattern，the SAFE focuses on providing greater convenience by identifying key areas that require policy support. We are constantly striving to ensure a smooth and efficient path for policy implementation，comprehensively promoting policy implementation，and achieving tangible results.

SAFE is actively working on trade facilitation reform. We are broadening the scope of foreign exchange payment and receipt policies to include more high-quality enterprises，including more high-quality small and medium-sized enterprises (SMEs)，particularly those utilizing special and sophisticated technologies to produce novel and unique products. To this end，we are intensifying our efforts to implement policies in various regions. We are also optimizing the classification of trading entities and promoting the improvement and efficiency of trade facilitation to better serve the reasonable needs of market participants and facilitate foreign exchange receipts and payments in cross-border trade. Furthermore，to improve the proactive and professional nature of banking services for businesses，we also monitor and evaluate the results of trade facilitation policy implementation on a regular basis to identify common problems and major risks.

SAFE is committed to facilitating the use of foreign exchange by individuals. We have introduced an online review system for personal use of foreign exchange and supported banks in expanding electronic channels to streamline the settlement of small cross-border remittances under the current account. In addition，we have compiled a database of frequently asked questions (FAQs) on the individual use of foreign exchange to respond to business challenges and policy inquiries，while also catering to a wide range of reasonable needs of individuals.

In the future，the SAFE will continue to adhere to the guidance of XI Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of the 20th CPC National Congress. Under the new development pattern，we will strengthen the foreign exchange management system and mechanisms to align them with the new system for a higher-level open economy. 

The author is the Deputy Administrator of the SAFE