The economic cost of the Chinese splurge abroad is offset by the surplus generated by the country’s manufacturing and trading sector.

China’s foreign exchange regulator has noted that the country’s trade deficit in the services sector has yawned to $21.0 billion in March from $16 billion in the previous month.

As per available data from the State Administration of Foreign Exchange (SAFE), tourists who visited China spent less than Chinese tourists who ventured abroad. This is prime reason for the widening of the trade deficit in China’s service’s sector.

During the first three months of the year, China’s service’s trade deficit stood at $57 billion yuan.

As per SAFE, China had however a surplus of $24.6 billion in the manufacturing and trading sector.

Categories: Economy & Finance, Strategy, Uncategorized

Tags: China, deficit, economy, foreign exchange, manufacturing, services sector, State Administration of Foreign Exchange, surplus, trade deficit, trading