China recorded a current account surplus of $82 billion and maintained a reasonable and orderly two-way flow of cross-border funds in the first quarter of 2023, the State Administration of Foreign Exchange (SAFE) said on Friday. 

China maintained a basic balance of payments in the first quarter of 2023, said Wang Chunying, deputy director of SAFE.  

The current account surplus was $82 billion, or two percent of GDP of the same period, which remained within a reasonable and balanced range, said Wang. Two-way cross-border capital flows will be maintained in a reasonable and orderly manner, she added. 

According to Wang, China's balance of payments in the first quarter has three characteristics. First, the surplus of trade in goods is at a relatively high level compared with similar periods. 

Second, there is a deficit in services trade. In the first quarter, the services trade deficit was $47 billion, Wang said. Travel deficit was $43.4 billion, up 58 percent year on year, mainly due to an increase in individual overseas travel. Logistics deficit was $19 billion, compared with a surplus of $3.3 billion in the same period last year. This was mainly due to the recovery of global transport capacities and the gradual return of China's logistics services balance to pre-pandemic levels. 

Third, two-way foreign direct investment maintained progress. China's foreign direct investment in the first quarter recorded $50.6 billion in outflows, up 23 percent year on year, with inflows of $20.5 billion.

"In the face of a complex and volatile external environment, China has adhered to the general principle of seeking progress while maintaining stability, strived to promote high-quality development, shown a positive momentum of economic growth, and provided fundamental support for the basic balance of payments," Wang said. 

(Cover via CFP)