China’s economic relationship with the rest of the world is roughly in balance, said the IMF — a significant change after years of criticism from other countries that China posed a risk to the global economy, reported the Financial Times.
The country’s current account surplus has dropped to close to zero for the first time since 2012, when the IMF began reporting on the imbalances that afflict the world’s major economies. At just 0.4% of GDP in 2018, China’s current account surplus declined by 1% year-on-year, according to the IMF.
For years China’s current account had showed it to be a big net lender to the world, running a surplus as high as 10% of GDP in 2007. But in recent years its economy has become increasingly reliant on domestic demand — as opposed to exports and foreign investments — which has helped rebalance its trade position.