China sees first quarterly current account deficit in 17 years

Trade data published last week by the State Administration of Foreign Exchange (SAFE) revealed China’s first quarterly current account deficit since Q2 2001, as the US calls on China to reduce its bilateral surplus.

China’s current account deficit was $28.2 billion in the first three months of 2018, Caixin Global reports. Goods trade stood at a surplus of $53.4 billion but was still a 35% fall from the same time last year. Services ran a $76.2 billion deficit.

According to the SAFE, the deficit was due to seasonal factors such as national holidays, and a steep uptick in goods imports from a year before.