CHINA FOREX: In 2024, what initiatives did the Science and Technology Department of the State Administration of Foreign Exchange (SAFE) undertake to advance the reform and development of foreign exchange administration, while simultaneously fulfilling a dual role of supporting and leading technological innovation?

ZHANG Tiecheng: The year 2024 marks the 75th anniversary of the founding of the People's Republic of China and is a key year for achieving the goals and tasks outlined in the 14th Five-Year Plan. In the face of a complex international situation and the challenging tasks of domestic reform, development, and stability, the department, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, closely aligned its actions with the decisions and deployments of the Central Committee of the Communist Party of China (CPC), the State Council, and the SAFE CPC Leadership Group. It maintained a balance between development and security, and emphasized the work principles of upholding political guidance, serving the people through foreign exchange policies, and empowering through technology. It integrated Party building with the department business by enhancing the construction and application of cross-border financial service and digital foreign exchange administration platforms (ASOne). Firstly, our efforts focused on three scenarios: financing, facilitation, and exchange rate risk management services. We advanced the development of cross-border financial service platforms, enhanced application scenarios, and expanded the range of beneficiaries. In terms of financing, we introduced a new financing application scenario for port cloud warehouse and upgraded corporate cross-border credit information authorization and verification, bank-enterprise financing connections, and logistics financing and settlement of the New Western Land-Sea Corridor. In the facilitation scenario, we expanded the pilot program for domestic freight payment in foreign exchange to the Shaanxi region. Additionally, we launched a new corporate exchange rate risk management service, piloted in Beijing and 24 other provinces (municipalities). As of the end of 2024, we had launched a total of nine financing application scenarios and four facilitation application scenarios, assisting over 100,000 enterprises in securing financing exceeding US$380 billion and facilitating nearly US$2 trillion in corporate foreign exchange payments. These initiatives actively supported Belt and Road initiative and the construction of the New Western Land-Sea Corridor, addressing the financing needs of micro, small and medium-sized enterprises(MSMEs), and enhancing cross-border settlement facilitation, consistently injecting technological momentum into the development of foreign-related economic activities. Notably, the cross-border financial services platform was recognized as one of the first 50 exemplary cases in the nationwide Digital China initiative. Furthermore, we actively supported foreign exchange administration reform and continuously upgraded the ASOne platform to streamline online operations. For bank transactions processed through SAFE's business system, we provided online interface services, integrating foreign exchange administration processes into banks' internal workflows. This innovation simplified business handling for banks, improved the efficiency of foreign exchange transactions, and reinforced the sense of achievement for both banks and enterprises.