CCTV News: Recently, the State Administration of Foreign Exchange released preliminary data on the balance of payments statement for the fourth quarter and annual 2024. Li Bin, deputy director and spokesperson of the State Administration of Foreign Exchange, answered reporters' questions on related questions.
Q: What are the characteristics of my country's current account in 2024?
A: Preliminary data from the balance of payments statement shows that in 2024, my country's balance of payments will continue to maintain a basic balance. Among them, the current account surplus is US$422 billion, and the ratio to the gross domestic product (GDP) during the same period is 2.2%, which is in a reasonable equilibrium range.
First, the scale of the trade surplus in goods hit a record high. In 2024, my country's trade surplus in goods in terms of balance of payments was US$767.9 billion, an increase of 29% over 2023. Among them, exports of goods trade were US$3409.1 billion, an increase of 7%; imports were US$264.12 billion, an increase of 2%. In 2024, my country's import and export product structure continued to be optimized and upgraded, foreign trade developed with high quality, the surplus of goods expanded and promoted the growth of the current account surplus.
Secondly, the service trade deficit has increased slightly. In 2024, the service trade deficit was US$228.8 billion, an increase of 10% from 2023. Foreign individuals travel to China and domestic individuals grew rapidly, driving travel revenue and expenditure to increase by 61% and 27% respectively. Productive service trade also maintained rapid growth, with a surplus of US$24.8 billion in telecommunications, computer and information services, and a surplus of US$41.5 billion in consulting and advertising, an increase of 29% and 9% respectively.
Q: What are the characteristics of my country’s two-way cross-border investment in 2024?
A: Preliminary data from the balance of payments show that in 2024, my country's current account surplus was independently balanced with the non-reserve financial account deficit, and the two-way cross-border capital flows were generally orderly.
First, domestic entities reasonably allocate overseas assets. The current account surplus forms a net inflow of funds, which, from the perspective of international balance of payments, mainly corresponds to the corresponding increase in foreign investment of domestic entities. In recent years, my country's enterprises' layout in the global industrial chain has accelerated, driving a net increase of US$130.2 billion in 2024, and foreign stock and bond investment has also increased, and the scale of foreign assets and net assets has steadily increased.
The second is to maintain net inflows from direct investment in China. In 2024, in the equity-based direct investment in China, new capital inflows were US$90.8 billion, of which the inflow scale in the fourth quarter increased significantly compared with the previous three quarters. Taking into account factors such as the relatively high cost of overseas financing and the increasing convenience of domestic financing, some foreign-invested enterprises tend to increase local financing, reduce or repay overseas loans, and direct investment in debt-based nature in China shows a temporary net outflow.
At present, my country's high-quality development continues to advance, and scientific and technological innovation and industrial innovation are integrated. Driven by more active and effective macroeconomic policies, the positive trend of economic recovery will be further consolidated, and my country's balance of payments is expected to continue to maintain a basic balance.
