Title: China’s International Balance of Payments Maintains Balance in Third Quarter of 2023
The State Administration of Foreign Exchange has released the balance of payments for the third quarter and the first three quarters of 2023. The data revealed that China’s international balance of payments has maintained a basic balance, with the current account surplus remaining within a reasonable and balanced range.
According to Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, China’s current account surplus in the first three quarters of 2023 was 209 billion U.S. dollars, representing 1.6% of the gross domestic product (GDP) in the same period. The surplus is within a reasonable range, with the goods trade surplus reaching historic levels.
Furthermore, China’s international investment position remained stable at the end of September 2023, with the scale of reserve assets continuing to rank first in the world. The net inflow of direct investment in China under the financial account was 15.5 billion U.S. dollars in the first three quarters, with the net inflow of equity direct investment, including capital and profit reinvestment, at 38.7 billion U.S. dollars.
Wang Chunying highlighted that China’s advantages in large-scale markets and complete industrial systems have continued to attract foreign investment inflows. Additionally, the net outflow of securities investment narrowed by 62% year-on-year, with non-resident investment in China’s bonds turning into a net inflow since September.
In terms of international investment position, China’s external net assets have increased by 2.9% compared to the end of June 2023, showing steady growth. The structure of external assets and liabilities continues to be optimized, with reserve assets remaining at $3.3 trillion.
China’s foreign debt data showed a decline in the scale of foreign debt in the third quarter of 2023, mainly due to the decline in the balance of banks’ external debt.
Overall, Wang Chunying noted that the favorable conditions facing China’s development are stronger than the unfavorable factors, supporting the continuous maintenance of overall stability in the international balance of payments and foreign debt scale.
The report provides an optimistic outlook for China’s economic recovery and continued improvements in the international balance of payments.