Analyze the impact of China s huge balance of payments surplus on China s economy

Impact: The local currency continues to strengthen, and exports are affected; Leads to inflation.

Persistent surpluses make foreign exchange reserves.

Sharp rise; It is not conducive to the development of international economic relations.

Persistent, large balance-of-payments surpluses.

will have the following effects:

1. The local currency continued to be strong, and exports were affected. A large surplus over a long period of time can oversupply foreign exchange, forcing the national currency to rise. If the local currency is too strong, it will trigger large-scale arbitrage and arbitrage.

and foreign exchange speculation, which destabilizes domestic and international financial markets; At the same time, it will put exports in an unfavorable competitive position, affect the development of exports, and thus aggravate the problem of domestic unemployment;

2. Leads to inflation. The sustained surplus has led to a sharp rise in foreign exchange reserves and a significant increase in foreign exchange share. At the same time, it will increase the supply of foreign exchange and the demand for the local currency, and the monetary authorities will have to buy a large amount of foreign exchange in the foreign exchange market to intervene. In both cases, the amount of money in the country will be forced to expand, and prices will be **, which will trigger inflation.

In addition, the hoarding of huge international reserves creates an opportunity cost of holding foreign exchange.

increase, lack of efficiency in the use of foreign exchange funds;

3. It is not conducive to the development of international economic relations. A large surplus in a country's balance of payments means that the balance of payments of the countries concerned has a deficit, which is often manifested as an imbalance between exports and imports, which is easy to cause friction and affect international economic relations. The current situation of imbalance in the balance of payments has increased the complexity of the current macroeconomic regulation and control.

In recent years, a large net inflow of foreign exchange has continued, making foreign exchange bonds a leading bank.

The main channel for the delivery of base money, although the first bank alternately uses monetary policy tools and constantly innovates the way of regulation and control to return the liquidity of the market, in the case of continuous cunning growth of foreign exchange reserves, the role of these regulatory policies has been limited, which has increased the difficulty of monetary control operations, and directly affected the autonomy and flexibility of monetary policy and macroeconomic control.

Answer]: a, c, d

When there is a surplus in the balance of payments, the supply of foreign exchange exceeds demand, and the ratio of foreign currency to domestic currency will fall. The local currency is facing upward pressure, exports are decreasing, imports are increasing, and in order to maintain the stability of the exchange rate, the base currency will be invested and foreign exchange will be purchased, so that the money supply will increase, which may produce inflationary pressure. So item b is incorrect.

Answers]: a, c, d, e

China's balance of payments surplus has adopted the adjustment policy 1, gradually relax and cancel the foreign exchange control under the current account 2, gradually relax the foreign exchange control under the capital account 3, reduce the scope and intensity of incentives for exports, change the growth mode of foreign trade, adjust the export structure of foreign trade 4, optimize the use of foreign capital structure, restrict the inflow of direct investment with high energy consumption, heavy pollution and low added value 5, and adopt a high-pressure policy of close supervision of foreign speculative hot money inflows.

Answer]: c, d

The increase in foreign investment will lead to a deficit in capital rotation projects, an incorrect selection of rotten items, and an external surplus and the inflow of foreign capital will lead to a surplus in the balance of payments.

In the past decade, China's balance of payments has been in surplus under the current account and capital account. The reasons are as follows: 1. China's foreign trade exports are one of the main ways to stimulate economic exports, and China's cheap goods sell well in the world, resulting in a surplus under the current account; 2. The surplus under the capital account is mainly due to the fact that on the one hand, foreign capital has made direct investment in China, which has led to currency inflows, and on the other hand, control measures have been imposed on capital outflows.

3. Another reason for the inflow of capital is that China has artificially underestimated the value of the RMB in order to develop the foreign trade export industry, which has led to the expectation of RMB appreciation in the market, which has caused a large amount of arbitrage capital to flow into China and wait to share the benefits of RMB appreciation.