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China's current-account balance 1982-2009

Current-account balance
(US$ bn)
1982	5.7
1983	4.2
1984	2.0
1985	-11.4
1986	-7.0
1987	0.3
1988	-3.8
1989	-4.3
1990	12.0
1991	13.3
1992	6.4
1993	-11.6
1994	6.9
1995	1.6
1996	7.2
1997	29.7
1998	29.3
1999	21.1
2000	20.5
2001	17.4
2002	35.4
2003	45.9
2004	68.7
2004	68.7
2005	160.8
2006	249.9
2007	371.8
2008	426.1
1st half 2009	134.5

More surpluses than deficits
1982 First full current-account figures published. Small current-account surplus reflects the surplus on merchandise trade.

1985-86 Current-account deficit produced by the trade deficit resulting from the initial surge in foreign direct investment (FDI), although this is tiny by comparison with FDI inflows after 1991.

1990-91 A huge cutback in government spending and bans on imports of items such as official cars helped to slash imports and push the current-account balance back into surplus.

1993 The sharp rise in FDI starting in 1992 pulled in large quantities of foreign equipment, causing a lapse into trade and current-account deficits in 1993.

1997-98 Slack home demand coupled with impressive export growth ensured that the current-account surplus was about US$30bn.

Although imports surged following China's accession to the World Trade Organisation (WTO) in 2001, exports grew faster, causing accelerating growth in the trade surplus in the 2000s.

In 2007, exports of goods reached USD1,220 billion while imports rose to USD 904.6 billion, leaving a record merchandise trade surplus of USD315.4 billion. At the same time, services imports exceeded services exports by USD7.9 billion. The resulting current-account surplus of USD371.8 billion partly explains the massive rise in China's foreign exchange reserves in 2007.

In 2008, the current-account balance ballooned even further to USD426.1 billion

In the first half of 2009 China recorded a merchandise trade surplus of USD119 billion and a deficit on services trade of USD16.7 billion and a net financial inflow of USD15.6 billion. The net outcome was a current-account surplus of USD134.5 billion, rather lower than for the same period of 2008.

Figures for 2009 will be available in 2010.

Source: State Administration of Foreign Exchange of the People's Republic of China.