The State Administration of Foreign Exchange (SAFE) has released the preliminary data on the balance of payments of the third quarter and the first three quarters 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 of the first three quarters of 2021?

A: The preliminary data shows that China maintained a basic equilibrium in the balance of payments during the first three quarters of 2021. China’s current account registered a surplus of US$202.8 billion, accounting for 1.6% of GDP in the same period, still within a reasonable range; the direct investment showed a net inflow and the cross-border capital flows were stable and orderly.

First, the surplus of trade in goods recorded a year-on-year increase. In the first three quarters of 2021, the surplus of trade in goods registered US$379.6 billion with statistic caliber of balance of payments, up by 16% year on year. Among them, the export of goods reached US$2.3 trillion, up by 31% year on year, which showed the continued growth of foreign trade in China caused by its sustained economic recovery, and the increase of international demand caused by gradual recovery of global economy and trade; the import of goods reached US$1.9 trillion, up by 34% year on year, which was mainly caused by the gradual recovery of domestic demand and the rising price of imports driven by that of international commodities. 

Second, the deficit of trade in services saw a year-on-year decrease. In the first three quarters of 2021, the service trade deficit recorded US$82.1 billion, down by 30% year on year. Travel, the use of intellectual property and transport accounted for the most deficit. Among them, the deficit in travel was US$72.4 billion, down by 20% year on year, which was mainly affected by the continuing restricted cross-border movement of people due to the sustained pandemic; the receipts and payments on the use of intellectual property increased by 39% and 24% respectively, and the deficit was US$26 billion, an increase of 20% year on year, which indicated the continuous development of China's intellectual property trade and in-depth international cooperation in this field; the deficit in transport was US$17.7 billion, down by 42% year on year, mainly arising from the faster growth of transport receipts than payments.

Third, the direct investment showed a large surplus. In the first three quarters of 2021, the direct investment recorded a net inflow of US$163.6 billion. Among them, the net inflow of foreign direct investment was US$249.1 billion, showing that foreign investors remained confident in investing in China; the net outflow of China’s outward direct investment was US$85.5 billion, which remained stable.

On the whole, the fundamentals of positive long-term trend of China’s economy and the overall situation of deepening reform and opening up comprehensively have not changed , which has laid a solid foundation for China to maintain a stable current account and a sustained overall equilibrium of balance of payments.