World Economy

China’s Foreign Service Trade Deficit Widens

China’s Foreign Service Trade Deficit WidensChina’s Foreign Service Trade Deficit Widens

China’s deficit in foreign service trading widened in June, according to data from the State Administration of Foreign Exchange released Wednesday, Xinhua reported. Income from foreign services stood at $22.3 billion in June, while expenditure was $41.7 billion, resulting in a $19.4 billion deficit. In May, China recorded a $19.1 billion services trade deficit, according to official data. China’s merchandise trade surplus narrowed to $45.1 billion in June, down from $48.1 billion in May, said the regulator. Service trading refers to the sale and delivery of intangible products such as transport, tourism, telecommunications, advertising and accounting. China’s service trade volume grew from $362 billion in 2010 to $713 billion in 2015, double the average of international growth rate. The country is aiming to lift its service trade volume to over $1 trillion by 2020.