China Current Account Surplus Revised Slightly Lower in Q2

China recorded a current account surplus of $193.7 billion in Q2 2026, revised down from the initial estimate of $195.1 billion but up from $184.3 billion in Q1. The surplus in goods and services widened to $223.4 billion from $187.9 billion. Credits rose to $1.2146 trillion from $1.061 trillion, as higher prices for major commodities exported by China boosted turnover, while the country’s slowing economy prompted manufacturers to continue relying on overseas clients for orders. Meanwhile, debits in the goods and services account increased to $991.2 billion from $873.1 billion. This came despite a surge in oil prices triggered by the war in Iran, a major supplier to Chinese refineries, as China largely halted energy imports and drew on existing inventories. Elsewhere, the secondary income account recorded a slightly higher surplus of $63 million, compared with $38 million previously, while the primary income deficit widened to $359 million from $74 million.

China's current account surplus widened to $195.1 billion in the second quarter of 2026 from $128.7 billion in the the previous year, the largest surplus on record for the second quarter. The goods surplus widened to $278.9 billion from $219.1 billion in the previous period. The credit compartment of the goods account rose by 26.2% to $1.1 trillion, as higher prices for major commodities that China exports lifted turnover while China's slowing economy drove manufacturers to continue relying on foreign clients for orders. In turn, goods debits rose 25.8% to $821.5 billion despite the surge in oil prices triggered by the war in Iran, a major supplier for Chinese refineries, as China largely halted energy imports and relied on inventory. The services account deficit widened slightly to $52.4 billion from $47.1 billion. Meanwhile, the primary income deficit narrowed to $37.6 billion from $47.4 billion and the secondary income surplus widened to $6.3 billion from $4.1 billion.

China's current account surplus widened to $184.3 billion in the first quarter of 2026 from $163.6 billion in the corresponding period of the previous year, a record high for the period, and revised slightly higher from the preliminary estimate $184.1 billion. The goods account surplus widened to $187.9 billion from $178.2 amid a 14.6% jump in exports to $1.061 trillion in the period, as lingering weakness in the Chinese economy resulted in manufacturing capacity to continue outgrowing demand, driving producers to rely on foreign markets for sales. In turn, the services deficit was relatively unchanged at $59.6 billion (vs $59.3 billion in Q1 2025). Meanwhile, the primary income account deficit narrowed to $7.4 billion from $15.5 billion and the secondary income surplus inched higher to $3.8 billion from $2.8 billion.