On July 4, 2025, Ji Min, head of the People's Bank of China (PBOC), announced a financial opening strategy for the Shanghai Free Trade Zone (FTZ), aimed at improving integration with international standards.
PBOC's Strategy in Shanghai Free Trade Zone
Shanghai Free Trade Zone receives a strategic push for deeper financial integration led by Ji Min. The initiative includes eight newly announced policies focused on enhancing offshore trade and optimizing financial account functions. FTZ aims to align more closely with global economic and trade standards, marking a significant step for China’s financial landscape.
Role of Digital RMB in New Strategy
The digital RMB plays a pivotal role in the shift towards innovative digital finance. The policies seek to replicate the successful Shanghai Experience nationwide, promoting improvements in electronic payment services. This move enhances China's capacity to conduct seamless digital financial transactions across borders.
Impact on China's Financial Ecosystem
China has conducted pilot programs for digital RMB since 2021. Despite its expansion within the FTZ, these pilots traditionally avoid global crypto markets, focusing on local innovation and transaction efficiency. The rise of digital finance may create new opportunities for institutional participation in regulated frameworks.
The financial opening of the Shanghai Free Trade Zone, initiated by the PBOC, signifies new approaches to integration with international standards and offers new opportunities for digital finance in the country.
