The State Administration of Foreign Exchange (SAFE) recently released preliminary data on the Balance of Payments (BOP) for the first quarter of 2024. SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on relevant issues.

Q: Could you brief us on China’s BOP for the first quarter of 2024?

A: The preliminary data shows that in the first quarter of 2024, China maintained a basic equilibrium in its BOP. The current account surplus registered USD 39.2 billion in the first quarter of the year, with its ratio to Gross Domestic Product (GDP) reaching 0.9%, thus maintaining within a reasonable and balanced range. Meanwhile, cross-border capital flows in both directions were kept reasonable and well-organized.

First, trade in goods continued to maintain a surplus. In the first quarter of 2024, trade in goods in terms of BOP recorded a surplus of USD 121.1 billion. Specifically, exports of goods amounted to USD 751.1 billion, marking a 2% year-on-year increase, while imports of goods totaled USD 630 billion, representing a 3% year-on-year increase. This is mainly because China's economy has witnessed a positive start since the onset of 2024 and, with constant progress in industrial transformation and upgrades, new growth drivers, modes and forms of trade have been expanding and the structure of trade has been optimizing.

Secondly, a deficit was recorded for trade in services. On one hand, the travel deficit rose by 34% year-on-year to USD 53.8 billion, as travel-related income and expenditures steadily returned to pre-pandemic levels. On the other hand, the surplus in key service trade sectors continued to expand. Notably, the surplus in consulting, advertising, and other business services reached USD 12 billion, reaching historically high levels. Meanwhile, the surplus in telecommunications, computer, and information services grew by 30% year-on-year to USD 4.8 billion.

Thirdly, two-way direct investment was conducted in an orderly manner. In the first quarter of 2024, enterprises exhibited stable practices of “going global” with a net outflow of outbound foreign direct investment in the form of equity investment reaching USD 25.7 billion. Conversely, there was a net inflow of USD 19 billion of foreign direct investment in China in the form of equity investment, involving an increase of USD 21 billion in capital inflow, indicating the overall stability of foreign capital in establishing and operating businesses in China.

Overall, despite the growing complexity, severity, and uncertainty of the external environment, China is accelerating the construction of the new development paradigm and promoting high-quality development. China’s economy has a solid foundation, marked by many advantages, strong resilience, and vast potential, which will continue to provide fundamental support for the country's basic equilibrium in the balance of payments.