foreign exchange administration in the digital trade era
emerging as a catalyst for international trade，digital trade has introduced numerous novel forms and models with its dynamic growth and development. nevertheless，in the realm of digital trade management，authenticating transactions and precisely determining their value pose significant challenges. this raises issues to the current foreign exchange regulatory framework. therefore，expediting the transformation of foreign exchange regulatory verification methods，refining quantitative assessment techniques，establishing robust rules for data market elements，and strengthening cross-departmental communication and coordination are imperative. these measures will foster the ongoing enhancement of foreign exchange management in the context of digital trade.
main challenges in foreign exchange administration for digital trade
the first challenge lies in determining the authenticity of transactions. the intangible nature of digital trade distinguishes it from traditional trade in terms of verification methods. the digital nature of services and goods in digital trade makes it difficult to establish the authenticity of transactions using the conventional framework of “funds，subject，physical goods and production conditions”. additionally，it is essential to examine the legality of product elements. in cross-border trade disputes，verifying the authenticity of successful transactions is crucial for ensuring the smooth flow of goods and funds. however，audiovisual products and publications purchased overseas did not meet domestic requirements. factors like meeting the requirements for cross-border product label translation and classification labeling requirements directly impact the legality of cross-border trade. determining the legality of digital trade solely from the perspective of foreign exchange administration poses a formidable challenge.
the second challenge is determining the true value of traded commodities. digital services and goods often involve a higher degree of information technology and added value. however，the absence of pricing benchmarks for trade elements such as intellectual property rights and artistic value in the domestic market complicates the process. this makes it challenging to determine the true value of digital trade contracts，resulting in easier illicit financial flows by non-compliant entities manipulating prices.
