China’s State Administration of Foreign Exchange (SAFE) released its 2025 Balance of Payments Report, highlighting a resilient current account and growing international financial engagement. The current account totaled USD 8.3 trillion, up 3% year-on-year, with a surplus of USD 735 billion, or 3.7% of GDP. SAFE projects that continued domestic demand expansion and high-quality market openness will help maintain this equilibrium over the medium term.

Outward Investment and Financial Flows
The surplus has been channeled into outward investment, balancing the overall accounts. In 2025, non-reserve financial outflows reached USD 820 billion, reflecting rapid growth in domestic entities’ international operations and diversified asset allocation. Equity-based foreign direct investment into China grew 20%, while foreign participation in domestic equities continued to rise. By year-end, China’s external assets stood at USD 11.8 trillion against liabilities of USD 7.7 trillion, yielding net external assets exceeding USD 4 trillion, a 28% increase.

SAFE’s reforms have streamlined cross-border investment and trade. Initiatives include high-standard trade pilot programs, online foreign exchange services for e-commerce, and faster banking processes, with enterprise-led transactions exceeding USD 2.3 trillion—up 33% from 2024. Simplified registration and unified foreign and domestic currency management for multinational corporations have further reduced administrative friction.

Global Footprint and Economic Linkages
China’s outward investment has extended across 190 countries and diverse sectors, emphasizing long-term “patient capital” with high stability. Overseas operations generated USD 3.6 trillion in sales in 2024, paid USD 82 billion in taxes, and created over 5 million jobs. Investment in emerging economies, particularly ASEAN, has bolstered industrial capacity, technology transfer, and financial market liquidity.

Outlook
Looking forward, SAFE anticipates that despite global uncertainties and trade policy volatility, China's balance of payments will remain broadly stable. Continued growth in exports, service trade, and outward investment, alongside measured foreign inflows, is expected to sustain both the current and financial accounts. Efforts to expand market access, deepen financial connectivity, and facilitate foreign participation in domestic securities markets are central to maintaining stability and supporting China's integration into global economic and financial systems.