China’s deficit in services trade set to keep rising in near future

Source:Global Times Published: 2018/6/14 22:13:44

China's services trade deficit is expected to rise further in the next few years, which is in line with the law of economic growth and the level of China's economic development, a senior trade official said Thursday.

Data released by the State Administration of Foreign Exchange showed that China registered a surplus of $29.4 billion in the trade of goods in April, while the services trade deficit reached $24.1 billion, according to its website.

"Based on international experience, a deficit in services trade will always occur during the transformation period of major manufacturing countries. So we anticipate the deficit will rise until China has developed to a certain level," said Gao Feng, spokesperson for China's Ministry of Commerce (MOFCOM).

For example, from 1980, Japan and Germany registered a deficit in services trade for 36 consecutive years. In 1999, Germany's services trade deficit reached a peak of $60 billion, Gao said.

"It also shows that China's services industry still lags far behind those of developed countries," he noted.

"China will continue to promote the development of services trade through sharing of experience and construction of the national services brand," Gao said.

Posted in: ECONOMY

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