Core Insights - The report highlights the increasing volatility in international financial markets and the complex geopolitical situation, which poses significant external risks to China's economy [1] - China's economy is showing resilience and stability, with a focus on high-quality development and proactive macroeconomic policies [1] Economic Performance - In the first half of 2025, China's current account surplus reached $294.1 billion, remaining within a reasonable equilibrium range [2] - The total import and export volume of goods increased by 2% year-on-year, while service trade grew more actively with a 6% increase in service imports and exports [2] - Investment income improved, with China's outbound investment income and foreign investment income in China growing by 13% and 7% respectively [2] Financial Stability - By the end of June 2025, China's foreign financial assets and liabilities exceeded $11 trillion and $7.2 trillion respectively, resulting in a net foreign asset of $3.8 trillion, a 16% increase from the end of 2024 [2] - The non-reserve financial account deficit and current account surplus formed a self-balancing pattern, indicating a stable investment environment [2] Future Outlook - The report anticipates continued challenges from a complex external environment and downward pressure on the global economy, but expects the current account to maintain a reasonable equilibrium [3] - China's efforts to establish a new development pattern and enhance macroeconomic policy effectiveness are expected to support stable international payments [3] - The foreign exchange management department will implement policies to ensure a more convenient, open, secure, and intelligent foreign exchange management system [3]

Core Viewpoint - The Director of the State Administration of Foreign Exchange, Zhu Hexin, stated that since the beginning of the 14th Five-Year Plan, China's international balance of payments has become more stable, demonstrating resilience in foreign trade despite complex external challenges [1] Group 1: International Balance of Payments - China's international balance of payments is fundamentally balanced, with the current account surplus to GDP ratio maintained within a reasonable range [1] - The cross-border two-way investment and financing activities are active, indicating a robust financial environment [1] Group 2: Foreign Trade and Economic Resilience - China's foreign trade has shown a diversified pattern, enhancing its resilience against external pressures [1] - As of the end of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits, reflecting strong foreign interest in China's financial markets [1]