China’s foreign trade in goods registered a surplus of $25.9 billion in February, according to the State Administration of Foreign Exchange (SAFE). The figure was on par with the same period last year, indicating stable operations despite global economic uncertainty. The country’s service trade deficit was $4.3 billion last month, slightly lower on a monthly and yearly basis, also according to SAFE data.
Furthermore, forex settlement by banks was essentially equal to sales in February, while foreign-related receipts and payments of non-banking sectors became more balanced, suggesting that China’s forex market has the basis and conditions to maintain steady operations. “China’s forex market has the basis and conditions to maintain steady operations,” said Wang Chunying, deputy director and spokesperson of SAFE.
Wang added that pro-growth policies and a recovering economy have strengthened the foundation for stable cross-border capital flows. With these positive developments, China has a more solid foundation to ensure stable and sustainable foreign trade and investment. While the global economic outlook remains uncertain, China’s forex market and trade operations appear to be well positioned to weather any potential challenges.