China's Current Account Surplus Reaches $300.6 Billion in H1 2023

China's current account surplus reached $300.6 billion in H1 2022, with a surplus in goods trade of $456.6 billion and a services trade deficit of $105.9 billion. In terms of Special Drawing Rights (SDRs), China's current account surplus was $225.7 billion. The data was released by the State Administration of Foreign Exchange.

China's current account surplus surged to a record USD 135.1 billion in the second quarter of 2025, up sharply from USD 55.5 billion in the same period last year, according to preliminary estimates from the State Administration of Foreign Exchange [1]. This significant increase was driven by a substantial rise in the goods trade surplus, which reached USD 219.1 billion from USD 163.4 billion a year earlier. The surge in exports, increasing 5.7% to USD 871.8 billion, and a decline in imports by 1.3% to USD 652.8 billion, were key factors contributing to this growth.

The services deficit narrowed to USD 46.5 billion from USD 61.7 billion, while the primary income deficit decreased slightly to USD 41.4 billion from USD 48.9 billion. Notably, the secondary income surplus increased to USD 4.0 billion from USD 2.7 billion in Q2 2024. These shifts indicate a robust economic performance for China, particularly in its trade sector.

In contrast, the U.S. trade deficit narrowed in June, reflecting the impact of President Trump's sweeping tariffs on imported goods. The overall trade gap narrowed by 16.0% to USD 60.2 billion, with the trade deficit with China shrinking to its lowest level in more than 21 years at USD 9.5 billion [2]. This decline was attributed to a sharp drop in consumer goods imports and a significant reduction in imports from China.

These developments highlight the evolving dynamics in global trade, with China's robust trade performance and the U.S.'s strategic tariff policies shaping the international economic landscape. As trade negotiations continue between the U.S. and China, the impact of these policies on future trade flows remains a critical area of focus for investors and financial professionals.

References:
[1] https://tradingeconomics.com/china/current-account
[2] https://www.newsmax.com/finance/streettalk/u-s-trade-import/2025/08/05/id/1221318/