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E-mail China.org.cn, May 22, 2024
Economic Daily:
We've noticed that the People's Bank of China (PBC) has frequently organized seminars with foreign-funded institutions to enhance dialogue. Additionally, last year saw the establishment of financial working groups with both the U.S. and the EU . Could you discuss the impact of financial diplomacy in stabilizing foreign investment? Thank you.
Zhou Yu:
Thank you for your interest in the People's Bank of China's work. Since last year, the PBC has intensified its efforts in international communication and collaboration. We've engaged actively with our counterparts in other countries' financial regulatory authorities and enhanced interactions with various international financial organizations and foreign financial institutions, particularly large multinational banks. These efforts have played a significant role in stabilizing foreign investments.
Speaking of our communication with international counterparts, as you might have noticed, the PBC has worked with U.S. and EU counterparts in establishing two working groups, namely, China-U.S. Financial Working Group with the U.S. Department of the Treasury, and the China-EU Financial Working Group with the Directorate General for Financial Stability, Financial Services and Capital Markets Union of the European Commission. These two groups signify the first dedicated communication and coordination mechanisms in the financial sector that the PBC has established with two of the world's leading economies, the United States and the European Union. To date, the China-U.S. Financial Working Group has convened three meetings and we just concluded the first meeting of the China-EU Financial Working Group yesterday. We also maintain similar cooperative and communicative mechanisms with BRICS nations and some neighboring Asian countries. These mechanisms are useful in the following aspects. First, they enhance our policy dialogue concerning macroeconomic issues, monetary policy and financial stability, thereby improving our mutual understanding of each other's policies and aid in our macroeconomic policy formulation.
Yesterday, a counterpart from the European Union offered an excellent description. He said that previously he had only known us by name, but now, through dialogue and interaction, he can connect our names with our lively faces, and that we now know who to contact in order to solve issues through conversation.
Second, other than policy communication, both sides also offer support for financial institutions to solve specific issues through such exchange mechanisms and arrangements, so they can better operate businesses in each other's markets and jointly help boost the prosperity of the economy and the financial sector. In communication and exchange with major economies, we often compare notes on issues regarding international financial trends and global economic and financial stability. This kind of communication and exchange is also a type of global public good conducive to global financial stability.
In addition to improving policy-related discussions in financial areas between financial regulators, we also focused on enhancing direct communication with foreign financial institutions. The PBOC has a great tradition of regularly holding talks with foreign financial institutions and enterprises, presided over by PBOC heads. Through face-to-face discussion, we listen to what the foreign institutions have to say, learn about their demands regarding business operations and reply to their questions on regulatory policies. We are more than happy to resolve their doubts and boost trust. Issues are solved on site wherever possible and unsolved ones will be itemized and tackled later on.
As just mentioned, yesterday we held the first meeting of the China-EU Working Group on Financial Cooperation. As part of this communication mechanism of financial regulators, we specially hosted a China-EU Financial Roundtable yesterday afternoon where financial authorities from both sides heard the ideas and suggestions of nearly 30 banks, security firms, insurers, asset managers and credit bureaus from China and Europe. These financial institutions analyzed key areas to promote China-EU financial cooperation in the next steps while also sharing difficulties they've faced in practice and demands regarding business operations. Financial regulators from both sides readily agreed to take down these issues as "homework" to be completed, tackling these issues as early as possible in order to achieve tangible achievements as the result of cooperation.
For example, to address the concerns of financial institutions, we focus on two aspects. First, cross-border flow of financial data. There are national regulations with cross-border data flow. The financial sector is data-intensive and subject to strict regulations. The cross-border data flow in this sector has its specificities. We learned about the demands of multinational financial institutions and conducted thorough study and research. On this basis, the PBOC is working with several other financial regulators to design an institutional arrangement for cross-border flow of financial data, to determine key data catalogues for the financial sector and to establish unified regulation and compliance standards. By adopting these measures, we guide foreign institutions with clearer regulations. With ensuring our financial and data security as the prerequisite, we pledge to do our best to help foreign financial institutions lower their compliance costs regarding cross-border data flow and improve efficiency of data transmission, enabling more agility and convenience in their Chinese operations to attract more foreign investment.
Second, payment-related matters. We all know that China leads the world in terms of mobile payment. But due to varied payment habits, many foreigners have found it difficult to make payments in China. Lately, we issued a number of measures to improve payment services. We also released a payment guide for foreign nationals in China. I brought one with me today after handing out one to each of our EU counterparts yesterday. They thought the guide could come in handy and help them solve payment issues they might encounter while staying in China. We also plan to begin providing help at an earlier stage, offering the guide to foreigners even before they come to China so that, upon arrival, they will be able to enjoy more convenience payment-wise.
In short, by talking to international peers, multinational financial institutions and foreign financial institutions, we are able to better understand each other's policies and help business entities effectively solve issues encountered in daily operations. These solid efforts improve the business environment and make China's financial sector more appealing. Thank you.
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