The State Administration of Foreign Exchange (SAFE) recently released data on external debt at the end of March 2023. SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on relevant issues.

Q: Could you brief us on China's external debt in the first quarter of 2023?

A: In the first quarter of 2023, China's external debt has rebounded slightly, with the structure remaining largely stable. By the end of March 2023, the total outstanding external debt (including domestic and foreign currencies) reached USD 2.4909 trillion, representing an increase of USD 38.1 billion or 2% from the end of 2022. Regarding currency structures, external debt in domestic currency accounted for 45% of China's total external debt, basically the same as at the end of 2022. Concerning the maturity structure, medium-and-long-term external debt accounted for 44%, down by one percentage point from the end of 2022.

Q: What is your comment on China's external debt situation?

A: China's economy has had a promising start, and the scale of its foreign debt has slightly increased. In the first quarter of 2023, China's economy got off to a good start, with social production and financing demand stabilizing and rebounding. Driven by the growth of bank currency and deposit balances, the scale of China's external debt has increased slightly.

China's external debt is projected to stay stable in the future. As major developed economies slow down their monetary policy-tightening pace, the spillover effects are expected to weaken gradually. Meanwhile, China adheres to the general principle of pursuing progress while ensuring stability, and the overall improvement of its economic performance provides fundamental support for the stability of its external debt scale. SAFE will continue to promote the facilitation of cross-border investment and financing to serve the high-quality development of the real economy.