The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on the Balance of Payments for the fourth quarter of 2017 and the whole year. On that basis, its press spokesperson answered media questions on relevant issues.

Q: Could you brief us on China's balance of payments for 2017?

A: The preliminary data in the Balance of Payments for 2017 show twin surplus under the current account and the financial account (excluding reserve assets) (including net errors and omission for the fourth quarter, the same as below), and increases in reserve assets.

First, a reasonable surplus was registered under the current account and foreign trade rose on a year-on-year basis. In 2017, a surplus of USD 172 billion was recorded under the current account, and its ratio to GDP for the same period was 1.4%. Trade in goods in the Balance of Payments registered a surplus of USD 476.1 billion, with exports and imports of goods rising by 11% and 16% respectively, suggesting a stronger trend for recovery and growth in foreign trade.

Second, the financial account (excluding reserve assets) became a surplus. In 2017, a surplus of USD 82.5 billion was posted under the financial account (excluding reserve assets), versus a deficit of USD 475.2 billion in the comparable coverage in 2016. In particular, direct investment recorded a net inflow of USD 63.8 billion, compared with a net outflow of USD 46.6 billion in 2016. Specifically, a net outflow of USD 101.4 billion was recorded under ODI, and a net inflow of USD 165.3 billion under FDI, which were high in both directions.

Third, reserve assets were on the rise. In 2017, China witnessed an increase of USD 91.5 billion in reserve assets as a result of BOP transactions (excluding non-transaction factors such as foreign exchange rates and prices), versus a decrease of USD 443.7 billion in 2016. To be specific, foreign exchange reserves climbed by USD 93 billion, while the reserve position in the IMF declined by USD 1.5 billion.

Overall, China's BOP remained robust in 2017, with cross-border capital flows changing from net outflows into a basic equilibrium. As China's economy remains steady with a stronger momentum for growth, the foundation for the general equilibrium in BOP will be stronger going forward.