The State Administration of Foreign Exchange (SAFE) has released the preliminary data on the balance of payments (BOP) of the third quarter and the first three quarters of 2022. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues.

Q: What are the characteristics of China’s BOP of the first three quarters of 2022?

A: The preliminary data shows that, in the first three quarters of 2022, China maintained a basic equilibrium in its BOP. Specifically, the current account reached a surplus of USD 310.4 billion, which was the highest in history for the same period, with a year-on-year increase of 56%. The surplus accounted for 2.4% of GDP during the period and remained within a reasonable range. The direct investment showed a net inflow and the cross-border capital flows were stable and orderly.

First, the trade surplus in goods hit a record high for the same period. In the first three quarters of 2022, trade in goods on BOP basis posted a surplus of USD 521.6 billion, a year-on-year increase of 37%. To be specific, the export of goods reached USD 2.5306 trillion, a year-on-year increase of 10%; the import of goods registered USD 2.009 trillion, a year-on-year increase of 5%.

Second, the trade deficit in services narrowed year on year. In the first three quarters of 2022, the trade deficit in services recorded USD 65.6 billion, a year-on-year decrease of 23%. To be specific, the travel deficit was USD 79.7 billion, up by 18% year on year, mainly due to an increase in expenditures of overseas study. The deficit in intellectual property royalties was USD 23.8 billion, a year-on-year decrease of 8%. The revenue on intellectual property royalties increased by 21%, reflecting the continuous improvement in the service level of China’s intellectual property. The deficit in transportation registered USD 8.9 billion, a year-on-year decrease of 62%, as revenue from transportation services grew faster than expenditure.

Third, the overall direct investment remained in surplus. In the first three quarters of 2022, the net inflow of foreign direct investments was USD 46.9 billion. The net inflow of direct investment to China reached USD 160.8 billion, showing that China’s economic prospects are positive in the long term and continue to attract foreign investment in China. On the other hand, China’s outward direct investment (ODI) saw a net outflow of USD 113.9 billion, which was generally in a stable and orderly manner.

In general, the fundamentals of China's economy－strong resilience, ample potential, wide room for maneuver and long-term improvement－will not change, and at the meantime the positive momentum of China’s economic recovery will be further consolidated, which will provide fundamental support for China to remain an equilibrium in its BOP.