The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) for the first three quarters of 2022 as well as the International Investment Position (IIP) at the end of September 2022. The 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 three quarters of 2022?
A: In the first three quarters of 2022, China’s BOP maintained an overall equilibrium position.
First, the current account surplus stayed within a reasonable and balanced range. In the first three quarters of 2022, the current account surplus hit the highest record for the same period in history and stood at USD 310.7 billion, with its ratio to Gross Domestic Product (GDP) reaching 2.4%, which maintained within a reasonable and balanced range. To be specific, trade in goods remained resilient, and as a result, trade in goods in terms of BOP recorded a surplus of USD 521.5 billion, up by 37% year on year. Trade surplus in goods, export and import scale all reached the highest levels in history. Meanwhile, the trade deficit in services recorded USD 65.5 billion, narrowed by 23% year on year.
Second, the cross-border investments were in a stable and orderly manner. In the first three quarters of 2022, foreign direct investments in China summed up to USD 161.9 billion, a figure higher than that of the same period in 2019 and 2020. China’s outward investments reached USD 113.3 billion, and the pace of investment was steady and orderly.
In general, China has achieved better coordination between the epidemic prevention and control as well as economic and social development. At the same time, the package of policies to stabilize the economy continued to portray good results, and the recovery of China’s economy kept its momentum in an upward trend. It is therefore conducive to maintaining a basic balance of international payments.
Q: What would you say about China’s IIP at the end of September 2022?
A: At the end of September 2022, China’s IIP remained stable, and its reserve assets continued to rank first in the world.
First, the net foreign assets increased. By the end of September 2022, China posted external assets of USD 8.898 trillion and external liabilities of USD 6.534 trillion. Its net foreign assets (which is assets minus liabilities) reached USD 2.364 trillion, up by 19% from the end of 2021.
Second, the structure of China’s external financial assets and external liabilities remained sound. By the end of September 2022, non-reserve assets accounted for 64% of China’s external assets, an increase in proportion compared with that of 2021. Its reserve assets recorded USD 3.2 trillion, the largest in the world. Of external liabilities, the foreign direct investment in China was relatively stable and accounted for more than 50%, with a scale of USD 3.4 trillion.
