Chart of the Day: China’s Widening Services Trade Deficit

China’s trade deficit in services reached $29 billion in August, a 14.79% increase from the month before and its highest level since June 2017, the State Administration of Foreign Exchange announced Wednesday.

Trade in services covers areas such as financial services, tourism, advertising, telecommunications and accounting, and generally accounts for a higher percentage of gross domestic product in more developed economies.

While China has long had a surplus in its goods trade, it imports far more services than it exports, a point that the Chinese government raised in a white paper outlining its stance toward trade frictions with the U.S.

Contact reporter Charlotte Yang (yutingyang@caixin.com)