Foreign
Three perspectives on five years of change in China’s foreign exchange market
By Qiu Haifeng
As an important indicator reflecting the vitality of China’s external economy, cross-border capital flows have demonstrated consistent growth over the past five years. In 2024, China’s total cross-border receipts and payments reached $14 trillion, marking a 64 percent increase from 2020. In the first three quarters of this year alone, the total reached $11.6 trillion, up 10.5 percent year on year, with cross-border trade and investment activities maintaining robust momentum.
What new changes have taken place in China’s foreign exchange market over the past five years? Let’s look at it from three perspectives—
Balance of Payments: Expanding Scale, Enhanced Stability
China’s foreign trade resilience continues to drive growth in goods trade. Recent data from the State Administration of Foreign Exchange (SAFE), from 2021 to 2024, the annual average scale of goods imports and exports under the balance of payments reached nearly $6 trillion – an increase of almost 43 percent compared with the average during the 13th Five-Year Plan period (2016-2020).
Amid global economic shifts, China has steadily advanced manufacturing upgrades, ensuring the stability of its external economy. For instance, the recent export of 13.3 tons of fresh grapes from Dunhuang to Panama – a first for the region – exemplifies how Chinese enterprises like Gansu Benyuanxing Agricultural Products Co., Ltd. are leveraging local resources to expand internationally.
Alongside goods trade, two-way investment flows have grown steadily. From 2021 through the first half of 2025, net foreign investment inflows into China exceeded $740 billion.
Maintaining balanced cross-border flows has strengthened China’s external financial position. By June 2025, China’s external financial assets surpassed 7.2 trillion (up 10%). With net external assets of $3.8 trillion, China now ranks third globally in this category.
Services: Enhanced Environment and Improved Convenience
Trade facilitation policies have significantly streamlined cross-border payments. Li Tianpeng, Chief Financial Officer of Mintal Group based in Linyi, east China’s Shandong province, highlighted this improvement: “The efficiency of cross-border fund settlement has improved significantly.”
Mintal Group, which exports building materials such as boards and wall panels, frequently requires cross-border settlements. “In the past, we had to prepare a lot of documents and spend much time communicating with banks. Now, a single receipt transaction can be completed very quickly,” Li said.
This efficiency is reflected in their activity – in just the first half of this year, the company processed over 3,000 cross-border receipt transactions totaling more than $64 million.
During the 14th Five-Year Plan period (2021-2025), SAFE has advanced trade-related foreign exchange facilitation policies targeting high-quality enterprises, deepening the credit-based incentive mechanism categorized by enterprise and business type, and fostering a business environment where “greater integrity brings greater convenience.” By the end of September 2025, related facilitation transactions nationwide had totaled about $4.7 trillion.
In recent years, cross-border e-commerce has flourished. Characterized by small, frequent, large-volume, and online transactions, cross-border e-commerce requires more efficient settlement services than traditional offline methods can provide.
To meet this need, SAFE has leveraged technology to empower financial institutions, supporting qualified banks and payment institutions in bulk verification of electronically generated transaction data, such as online orders and logistics information, thus enabling efficient, convenient, and secure foreign exchange settlement services for enterprises.
Since the start of the 14th Five-Year Plan period, more than 1.3 million micro and small merchants engaged in cross-border e-commerce have been served by banks and payment institutions, which have processed about 5.6 billion related transactions.
Openness: Higher Levels and a More Refined Structure
On Oct. 17, Suzano, a giant in commercial pulp production from Brazil, successfully issued Panda Bonds worth 1.4 billion yuan ($196.36 million) in China’s interbank bond market.
Panda Bonds refer to yuan-denominated bonds issued by overseas institutions in the Chinese onshore market. Since 2023, the Panda Bond market has continued to expand. According to relevant statistics, total issuance has now exceeded 1 trillion yuan.
This expansion reflects China’s deepening institutional openness in the foreign exchange sector during the 14th Five-Year Plan period (2021-2025). A series of policy measures – including improved management of Panda Bond funds – have been introduced and implemented at a faster pace. SAFE, together with other departments, has continued to advance financial market reform and opening up in a steady and orderly manner, improving the multi-channel, multi-level framework for two-way financial market openness. As a result, the value of domestic securities held by overseas investors has risen by 6 percent compared with the beginning of the 14th Five-Year Plan period.
“Looking ahead to the 15th Five-Year Plan period (2026-2030), we will make the foreign exchange management system more convenient, more open, more secure, and more intelligent, making new and greater contributions to advancing Chinese modernization,” said Zhu Hexin, deputy governor of the People’s Bank of China and head of SAFE.
Foreign
China’s robot industry doubles revenue in five years
By Wang Zheng, Li Xinping, People’s Daily
At the 2025 China Robot Industry Development Conference, the China Machinery Industry Federation (CMIF) briefed on the performance of China’s robotics industry during the 14th Five-Year Plan period (2021-2025).
Industry revenue doubled from 106.1 billion yuan ($15 billion) in 2020 to 237.89 billion yuan in 2024. In the first three quarters of this year, revenue increased by 29.5 percent year on year.
Exports also expanded rapidly, growing from $390 million in 2020 to $1.15 billion in 2024. In the first three quarters of this year, exports reached $1.24 billion, surpassing last year’s total and marking a 56 percent year-on-year increase.
Domestic industrial robot brands gained significant market share, rising from 31.4 percent in 2020 to 58.5 percent in 2024.
“The robotics industry in China has grown rapidly during the 14th Five-Year Plan period, with a relatively complete industrial chain now in place,” said Xu Niansha, president of the CMIF.
Stronger Capabilities
At the 25th China International Industry Fair, Chinese industrial robot company Estun Automation showcased a heavy-duty robot capable of stably lifting and transporting 1,200 kilograms.
“Payload capacity is a key performance indicator. As industrial robots become increasingly integrated into manufacturing, demand is rising for high-rigidity, high-precision, and highly reliable heavy-duty models,” said a representative of Estun Automation.
Historically, China depended heavily on imported heavy-duty industrial robots, with domestic products accounting for less than 3 percent of the market. However, significant progress was achieved during the 14th Five-Year Plan period. For instance, Estun Automation’s 700-kilogram-capacity model, launched in 2024, received more than 100 orders, and in 2025, the company introduced a 1,000-kilogram-level robot.
Technological advances have also transformed welding, often referred to as the “sewing line” of modern industry. “Our welding robots deliver high-speed, heavy-load, highly stable spot welding. The fastest cycle for a single weld point is just 2.2 seconds,” said a representative of SIASUN Robot & Automation Co., Ltd., one of the largest robotics manufacturers in China.
Painting processes have similarly evolved. Traditional assembly lines typically require three to five days to paint a vehicle, whereas the automated production line using robots manufactured by Efort Intelligent Robot Co., Ltd. can complete the task in just over 80 seconds.
“This year’s new technologies allow robots to integrate intelligent process systems directly into the equipment, enabling automated color mixing, switching, spraying, and cleaning,” said engineer Wang Jinsong from Efort.
Stronger Industrial Support
In the first three quarters of this year, China’s industrial robot output reached 595,000 units, exceeding the total production of the previous year. This rapid growth reflects the continued development and strengthening of the country’s robotics industrial chain.
China has made significant advances in the production of core components, including high-precision reducers, high-performance servo systems, and intelligent controllers.
Harmonic reducers, often described as the “joints” of a robot, comprise a flexspline, wave generator, and circular spline. The flexspline, with a wall thickness of just 0.2 millimeters, requires micron-level machining precision. Chinese-made harmonic reducers now account for more than 40 percent of the domestic market.
Servo motors, the “muscles” of a robot, are essential for precise joint movement. Inovance Technology Co., Ltd., a leading global provider of industrial automation solutions based in Shenzhen, south China’s Guangdong province, holds the largest market share in China’s servo system sector.
At Inovance’s production base in Yueyang, central China’s Hunan province, the rotor production line has achieved full automation, while the stator line is 70 percent automated. “Our intelligent production lines deliver high precision and reliability, while also enabling customized services,” an Inovance representative said.
According to Song Xiaogang, executive vice chairman of the robotics branch of the CMIF, China’s robotics support system is becoming increasingly mature. Technological and industrial capacity has improved markedly, with leading robotics firms now producing over 80 percent of their components in-house.
Broader Applications
By the end of 2024, China was home to over 2 million industrial robots, ranking first globally.
In 2024, 302,000 industrial robots were sold in the Chinese market, marking an increase of 68.7 percent over 2020 and accounting for 54 percent of global sales.
The application of industrial robots has expanded significantly. By 2024, Chinese industrial robots had been deployed across 71 major categories and 241 sub-categories of the national economy, covering 51 percent of all sub-categories. This represents an increase of 19 major categories and 98 sub-categories compared with 2020.
Robot density in China’s manufacturing sector rose from eighth globally in 2020 to third in 2024.
The widespread integration of robotics has accelerated the development of intelligent manufacturing. China has established more than 35,000 basic-level intelligent factories, over 230 model factories, and 1,260 5G-enabled factories.
Looking ahead, intelligence and specialization are expected to drive future growth.
“As artificial intelligence becomes more deeply embedded in vertical industries, its integration with robotics is accelerating,” Song said, adding that robots are rapidly evolving from functional equipment performing repetitive, programmed tasks to intelligent partners capable of perception, decision-making, and autonomous action.
Foreign
Commercial spaceflight fuels China’s space exploration efforts
By Li Rui, People’s Daily
Recently, China sent a Gravity-1 carrier rocket into space from waters off the coast of Haiyang, east China’s Shandong province, placing three satellites into their designated orbits. This launch exemplifies the growing momentum of China’s emerging commercial space sector, which is contributing significantly to the country’s space exploration capabilities.
The global competition in commercial spaceflight is intensifying. According to projections, the scale of China’s commercial space market is expected to exceed 2.5 trillion yuan ($351.76 billion) this year. Through a strategic collaboration between the government and private enterprises, China is achieving a dynamic synergy that is accelerating technological advancements, reducing costs, and expanding the range of applications within its space industry. As a result, China’s space industry is gaining more visibility and vibrancy on the global stage.
China’s development of “space infrastructure” is advancing steadily, especially as the deployment of low-orbit satellite internet networks enters a phase of large-scale constellation expansion. However, the country faces a prominent challenge: the demand for satellite launches now exceeds the available capacity of traditional rockets. Relying solely on traditional rockets is far from sufficient to meet these growing needs.
In this context, the development of commercial space initiatives is essential to providing the necessary launch capacity for widespread space-based network deployment. This year, a new generation of commercial rockets, including the Zhuque-3, Tianlong-3, and Gravity-2, are advancing according to schedule with design, testing, and launch activities. These new launch vehicles will effectively alleviate the strain on satellite launch resources and bolster the development of China’s national satellite internet infrastructure.
Commercial spaceflight not only increases the frequency of launch opportunities but also opens up a broader range of technological possibilities. Unlike state-run space enterprises, private commercial companies are more agile and adaptable.
For example, the methalox engine independently developed by Chinese commercial rocket firm LandSpace has drawn global attention for its cost-effectiveness, clean propulsion, and reusability. Similarly, Chinese aerospace company Galactic Energy has significantly reduced rocket engine manufacturing costs through 3D printing.
Fueled by market-driven mechanisms and following a model of “small steps, rapid iterations,” commercial space enterprises have gained the favor of numerous research institutions. These companies serve as a strong complement to state-run space organizations, further advancing China’s space exploration capabilities.
As a dynamic sector driving the future of technological innovation, commercial spaceflight holds vast market potential. More than 10 provinces across China have introduced specific policies to support the development of the commercial space sector, fostering a wave of specialized and innovative companies focused on rocket development and satellite manufacturing. These initiatives have led to the creation of industrial clusters and a rapidly expanding “space economy” ecosystem.
For instance, Beijing is developing a regional industrial layout with rocket production in the south and satellite manufacturing in the north, while Shanghai aims to scale its space industry to hundreds of billions of yuan. Additionally, the aerospace industrial park Wuxi, east China’s Jiangsu province, has brought together more than 120 enterprises above the designated size, fueling growth and innovation.
As the commercial space sector shifts from isolated efforts to more integrated, clustered development, an autonomous, resilient, and competitive industrial ecosystem is taking shape, becoming a significant driver of economic growth and technological advancement in space.
Today, commercial spaceflight not only serves national missions but is also expanding its innovation to meet everyday needs. Applications such as satellite remote sensing allow farmers to manage irrigation systems via a mobile phone, while satellite internet provides broadband access to remote areas, including mountains and oceans. Moreover, satellite-enabled intelligent transportation systems are optimizing traffic signal timing to reduce congestion.
These innovations highlight how space technology, once perceived as distant and exclusive, is now becoming an integral part of everyday life, enhancing communications, supporting agriculture, improving mobility, and providing tangible benefits to the public.
Commercial spaceflight represents a vast frontier of opportunity. It is not only a scientific domain for exploring the unknown but also a burgeoning economic sector with boundless potential for the future.
Foreign
Forging new chapters in China-U.S. people-to-people friendship
By He Yin, People’s Daily
The 2025 Kuliang Forum, themed “Echoes of History,” was recently held in New York.
In this special year marking the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, representatives from various sectors of China and the United States came together to commemorate the historical period when the two nations stood together in the fight for world peace.
Drawing on the legacy of Kuliang — an enduring symbol of China-U.S. people-to-people friendship — participants reaffirmed their commitment to strengthening mutual understanding and friendship.
The Kuliang story, personally promoted by Chinese President Xi Jinping, exemplifies the longstanding bond between the Chinese and American peoples. Xi has previously sent congratulatory letters to “Bond with Kuliang: 2023 China-U.S. People-to-People Friendship Forum” and to “Bond with Kuliang: 2024 China-U.S. Youth Festival,” underscoring the story’s continued relevance in today’s bilateral relations.
In recent years, “Kuliang Friends” and other supporters of China-U.S. friendship have actively preserved and promoted Kuliang’s legacy. Initiatives such as root-seeking visits and cultural exchanges, including “Bond with Kuliang: 2025 China-U.S. Youth Choir Festival,” have deepened mutual understanding and friendly exchanges between the two peoples.
The ever-growing and enduring Kuliang story shows that despite differences in history, culture, social systems, and development paths, the Chinese and American peoples share a common aspiration for friendship. This year, China held grand commemorative events marking the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, inviting descendants of American Flying Tigers members to attend ceremonies atop Tian’anmen Gate.
At the seventh China-U.S. Sister Cities Conference, participants discussed “Closer Cooperation for a Sustainable Future.” During “Bond with Kuliang: 2025 China-U.S. Youth Choir Festival,” more than 1,000 young singers from both countries performed in celebration of friendship.
These acts of goodwill, though seemingly modest, accumulate to bridge the Pacific, turning a geographical divide into a conduit for cooperation. The hope of the China-U.S. relationship lies in the people, its foundation is in our societies, its future depends on the youth, and its vitality comes from exchanges at subnational levels.
In July this year, Xi replied to teachers and students of the U.S. youth pickleball cultural exchange delegation from Montgomery County, Maryland, who visited China under the initiative of inviting 50,000 young Americans to China for exchange and study programs in a five-year span.
Xi congratulated the delegation on its successful visit to China, expressing his hope that the delegation members will become a new generation of ambassadors for friendship between the two countries and make greater contributions to enhancing friendship between the two peoples.
Since the launch of the initiative of inviting 50,000 young Americans to China for exchange and study programs in a five-year span, participation has been enthusiastic, demonstrating the initiative’s strong appeal and profound influence. A wide range of activities under the initiative, including maker competitions, academic dialogues, “future diplomats” summer camps, choir and music festivals, and pickleball friendship matches, have deepened mutual understanding between Chinese and American youth. A recent poll in the United States indicates a steady improvement in American public perceptions of China, with younger generations increasingly serving as a driving force for bilateral friendship.
To write new chapters of the Kuliang story and deepen people-to-people affinity, China and the United States must work together to build platforms and broaden channels for exchanges.
Last month, Xi and his U.S. counterpart Donald Trump held a successful meeting in Busan, South Korea, providing strategic guidance and fresh momentum for the steady development of bilateral relations at a critical moment. The two presidents reached important consensus on advancing practical cooperation across various fields, including expanding people-to-people exchanges.
Since then, the China-U.S. relationship has generally maintained a steady and positive trajectory, and this is welcomed by the two countries and the broader international community. China welcomes more Americans to visit and experience a real, multidimensional, and comprehensive China. It is hoped that the U.S. side will work with China in the same direction and take active steps to facilitate people-to-people exchanges, thereby strengthening bilateral bonds and mutual understanding.
The achievements in China-U.S. relations are primarily attributable to the collective efforts of the people of the two countries, and the continued development of this relationship will rely even more on their support. Both sides should take the Kuliang bond as a link, people-to-people exchanges as a bridge, and youth friendship as a source of strength, working together to continue writing new chapters of China-U.S. friendship and contributing to the sound and steady growth of China-U.S. relations.
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