China is expected to maintain a basic equilibrium of international payments in 2025, in the interest of the financial sector's support for high-quality development of the national economy, according to a senior official with the State Administration of Foreign Exchange on Tuesday.
Speaking at a press conference in Beijing, Jia Ning, director of the International Payments Department with the State Administration of Foreign Exchange, briefed on the outlook for China's balance of international payments in the new year.
He expressed the belief that although there are still many uncertainties and unstable factors in 2025, China has been implementing more proactive macroeconomic policies, and solid economic fundamentals will help boost market expectations and confidence.
Meanwhile, since China's foreign trade and foreign investment are quite resilient, along with a robust foreign exchange market, the balance of payments has the basis and conditions to maintain a basic equilibrium, he emphasized.
He gave three reasons for the favorable outlook for China's balance of payments in the new year.
First, China's manufacturing sector has made steady progress in its transformation and upgrading, with increased resilience in foreign trade, which is conducive to maintaining a reasonable surplus in the current account.
"China's manufacturing value added accounts for 30 percent of the world's total, which plays an irreplaceable role in global production and supply. Meanwhile, the transformation and upgrading of the manufacturing industry as well as the diversification of trade partners have been steadily advancing. The country's export competitiveness has been improving, with lower dependence on any single market. China's exports, after overcoming adverse factors, such as intensification of global trade protectionism, have generally remained stable," Jia said.
Second, China is committed to expanding opening-up at a high level, as well as constantly consolidating and improving the resilience of the foreign exchange market. So, the cross-border two-way investment is expected to remain stable and orderly in 2025.
"China has deepened reform of its foreign investment promotion system and mechanism, and has steadily promoted facilitation of cross-border investment and financing, which is favorable to business development and expansion by foreign investors in China. The opening-up of the financial market is also conducive to the allocation of Chinese yuan assets by foreign investors. China's foreign exchange market has continued its in-depth expansion. There has been gradual improvement of the market-based Chinese yuan exchange rate setting mechanism. Enterprises have had greater awareness and capability to evade risks in exchange rates. And there has been increase in cross-border use of the Chinese yuan. All these factors are conducive to making market transactions more rational and more orderly," Jia noted.
And third, the country always pays high attention to external risks and challenges.
The State Administration of Foreign Exchange will continue to deepen reform and opening up of the foreign exchange sector by improving the long-term mechanism for enterprise exchange rate risk management and by strengthening the management of the foreign exchange market, so as to better serve the development of foreign trade and foreign investment in the country, he said.
China’s balance of payments to maintain basic equilibrium in 2025: senior official
