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The Reason For China Current Account Deficit: Tourism

|About: iShares China Large-Cap ETF (FXI)
Summary

China current account goes back in surplus.

China services deficit is declining, probably due to lower tourism spending.

China goods trade surplus is stable.

China's current account deficit is attributed to tourism. It's not like China isn't producing goods anymore, it's just that China is now consuming its money and they go all over the world to spend their money, creating a services deficit.

But this services trade deficit is narrowing and the current account surplus is rising again.