China's foreign exchange landscape showed sustained momentum during the first half of 2025, with the State Administration of Foreign Exchange (SAFE) announcing a 7.8% year-on-year increase in cross-border receipts and payments at Thursday's press conference. Deputy Administrator Li Bin attributed the growth to stable trade flows and improved investor confidence in Asia's largest economy.
Key Highlights
Current account surplus expanded to $412 billion, driven by strong exports of electric vehicles and renewable energy equipment. Services trade deficit narrowed by 15%, reflecting recovering outbound tourism and digital service exports. Foreign direct investment inflows reached $98 billion, with manufacturing and high-tech sectors attracting 68% of total commitments.
Market Resilience
Li emphasized the yuan's stability against a basket of currencies, noting: 'Our diversified settlement mechanisms and currency swap networks have effectively mitigated global financial volatility.' The report highlights increased usage of yuan in cross-border transactions with ASEAN and Belt & Road partner countries, now accounting for 34% of total settlements.
Global Context
While acknowledging challenges from tightening monetary policies in developed economies, SAFE officials expressed confidence in maintaining 'generally balanced' capital flows through enhanced macro-prudential measures. Analysts suggest the data indicates China's growing role in stabilizing regional financial markets amid ongoing global economic realignments.
