China Implements New SAFE Measures to Facilitate Cross-Border Trade
The State Administration of Foreign Exchange (SAFE) has introduced a new package of nine facilitation measures aimed at reducing friction in cross-border transactions and strengthening the development of China’s foreign trade sector. Announced at the 2025 Financial Street Forum in Beijing, these policies span three major areas: expanding trade facilitation pilots, upgrading support for emerging trade formats, and optimizing the use and management of service trade funds. Together, these measures reflect China’s ongoing commitment to building a more open, efficient, and flexible foreign exchange environment.
Expanding High-Level Trade Facilitation Pilots
A key component of the new policy package is the “double expansion” of trade facilitation pilots. On the regional level, high-level opening-up pilots, previously concentrated in 11 regions including Beijing, will now be extended to more areas aligned with national development strategies. This expansion is expected to provide a wider range of enterprises with access to streamlined cross-border financial services.
On the business side, the scope of transactions eligible for facilitation will be broadened. SAFE plans to expand the types of payments and service fees that can be handled under simplified procedures, thereby reducing the frequency, cost, and administrative burden of cross-border remittances. For high-quality enterprises participating in the cross-border capital pool operations of multinational corporations, settlement procedures for centralized collection and payment under current accounts will be further simplified. Banks will also be empowered to offer value-added services to support foreign employees of qualified enterprises, improving the efficiency of salary-related transactions.
Supporting New Forms of Trade Through Digitalization
As new forms of foreign trade, particularly cross-border e-commerce, continue to grow, SAFE is upgrading facilitation measures to better address their operational needs. Banks are encouraged to leverage the credibility and compliance capabilities of e-commerce platforms and foreign trade service providers, enabling more small and medium-sized enterprises to be recognized as “high-quality enterprises.” This shift will help SMEs access simplified and more flexible foreign exchange services.
To improve efficiency, the traditional document-based review model will be replaced in select scenarios by automated processing. Banks can now use electronic orders, logistics data, and information supplied by comprehensive foreign trade service enterprises to complete online foreign exchange transactions for cross-border e-commerce. In parallel, banks are being guided to enhance their service capabilities, offering more tailored foreign exchange solutions for innovative and complex current account transactions.
Enhancing Flexibility in Service Trade Fund Management
The new measures also target improvements in the management and utilization of funds related to service trade. Engineering contractors operating abroad will be allowed to open centralized fund management accounts overseas. This enables the consolidated allocation and flexible deployment of funds across multiple projects and regions, helping enterprises activate idle funds and reduce financial costs.
In addition, the policies simplify settlement procedures for common service expenses such as customs declarations, warehousing, and logistics, costs frequently advanced by domestic or overseas institutions in the course of trade activities. The streamlined processes will shorten settlement cycles and enhance overall capital efficiency for enterprises engaged in foreign trade.
Advancing an Open and Secure Economic System
Looking ahead, SAFE has emphasized its commitment to balancing development with financial security. The authority aims to continue improving the convenience of cross-border trade revenue and expenditure, ensuring that policy benefits reach market participants more quickly and effectively. By smoothing policy transmission channels and enhancing the predictability of foreign exchange operations, SAFE seeks to contribute to the construction of a higher-level open economic system.
Toward a More Efficient Cross-Border Financial Environment
The issuance of these nine facilitation measures represents another step in China’s broader effort to modernize its foreign exchange administration system. By expanding access, promoting digitalization, and improving fund management efficiency, the new policies provide practical support for enterprises navigating global trade. As China continues to integrate into the international economy, the enhanced facilitation framework is expected to play a pivotal role in strengthening trade vitality and improving the operational environment for businesses of all sizes.