The State Administration of Foreign Exchange (SAFE) has released the preliminary data on the balance of payments for the first quarter of 2021. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues.
Q: What are the characteristics of China’s balance of payments in the first quarter of 2021?
A: The preliminary data shows that, in the first quarter of 2021, China’s balance of payments was basically balanced, with a current account surplus of US$75.1 billion, which was 2.0% of the GDP in the same period. China’s balance of payments remained within the reasonable range of equilibrium, with continuous net inflow of direct investment.

First, trade in goods recorded a relatively high surplus. In the first quarter of 2021, the trade surplus in goods in terms of international payments registered US$118.7 billion. Since 2021, China’s foreign trade has maintained a recovery growth trend. The export of goods in terms of international payments amounted to US$694.2 billion, an increase of 49% year on year. Imports reached US$575.5 billion, up by 29% year on year.

Second, trade deficit in services narrowed. In the first quarter of 2021, the trade deficit in services recorded US$22.3 billion, decreasing by 53% year on year. Travel was still the main deficit item, with a deficit of US$24.2 billion, down by 42% year on year. The main reason was that overseas study and tourism continued to shrink due to the impact of the pandemic.

Third, direct investment maintained continuous net inflow. In the first quarter of 2021, the net inflow of direct investment reached US$70.5 billion, mainly due to the net influx of direct investment in China of US$93.1 billion, reaching a historical high. It reflected foreign investors’ confidence in China’s epidemic prevention and control as well as economic development prospects. The net outflow of China’s foreign direct investment was US$22.6 billion, and the foreign direct investment of enterprises was stable.

At present, China is accelerating the construction of a new development pattern, focusing on promoting high-quality development, and constantly maintaining the highest standards of prevention and control of the pandemic. All the efforts will help keep the economic operation within a reasonable range and the basic balance of international payments. It is expected that China will continue to maintain a reasonable current account surplus in 2021.