China registered a current account surplus of $193.7 billion in the second quarter of 2026, which is a decrease from the initial estimate of $195.1 billion, but an increase from the $184.3 billion surplus in the first quarter of the year. These changes clearly reflect economic fluctuations and the effects of commodity prices on China's exports.
Increase in Goods and Services Surplus
The surplus in China's goods and services account reached $223.4 billion during this period, up from $187.9 billion in the first quarter. This increase is due to high prices for China's export commodities, which have brought significant revenues to the country. At the same time, China's slowing economy has led producers to remain dependent on foreign customers for orders.
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Rising Costs and Deficit in Primary Income
In contrast, China's costs in the goods and services account increased to $991.2 billion, showing significant growth from $873.1 billion in the first quarter. This rise in costs comes as China faces increasing oil prices due to tensions in Iran, one of the main suppliers to Chinese refineries. However, China has largely halted energy imports and relied on its existing inventories.
Additionally, the secondary income account recorded a slightly higher surplus of $63 million compared to the previous $38 million. Conversely, the deficit in the primary income account widened from $74 million to $359 million. This issue reflects the economic challenges facing China and their impact on the country's trade balance.
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