China’s trade deficit in services continued to widen in July to $17.6 billion, the foreign exchange regulator said on Monday, as Chinese spent more abroad than foreign visitors in the country.
The deficit was led by a huge gap of $15.9 billion in spending between Chinese and foreign visitors, the State Administration of Foreign Exchange (SAFE) said in a statement.
China posted a $46 billion surplus on trade of goods in July, resulting in a combined surplus on trade in goods and services of $28.4 billion.
The government has been trying to boost the services sector, which could help offset some downward pressure on the economy as the vast manufacturing sector falters due to both weak domestic demand and patchy global growth.
Chinese Premier Li Keqiang said recently international market instability “has increased the uncertainties around the global economic recovery, and the impact on China’s financial market and imports and exports has also deepened, with the economy facing new pressure.”
In June, the services sector had a deficit of $14.9 billion.
For the first seven months, China recorded a deficit of $109.2 billion in services trade and a surplus of $301.4 on trade in goods, yielding a combined surplus on trade in goods and services of $192.2 billion, data showed.