BEIJING - China's foreign service trade deficit narrowed in January while surplus in goods trade widened, the State Administration of Foreign Exchange (SAFE) said on Monday.

The deficit stood at $20.9 billion in January, down from $26.1 billion in December, SAFE data showed.

Income from trade in services was $21.8 billion, while expenditure totaled $42.6 billion.

Trade in services refers to the sale and delivery of intangible products such as transport, tourism, telecommunications, construction, advertising, computing and accounting.

China regularly holds a deficit in service trade as its service sector is less competitive than some other economies.

In contrast, China runs a large surplus in merchandise trade, as manufacturing operates at a reasonable cost.

In January, China saw a surplus of $53.5 billion in goods trade, up from $43.9 billion in December.