Study Of China At The Present Stage Of International Payments Imbalances

This paper makes deep analysis of the causes of our country's unbalance of international payment on the base of reviewer of related documents and makes suggestions of solving the problems. This paper first starts from the balance sheet, make certain of the concrete items which lead to the double favorable balance and thedirect causes of the unbalance——the surplus of goods items characterized with theprocessing trade and the rapid increase of foreign direct investment. Then this paper makes analysis of the deep reasons combined with domestic and international influencing factors. The reasons are as followings: first the effect of the policies under long-term outside economic developing strategy. Second, the combination effect of the division of international industry and the comparative advantage of massive amount of domestic cheap labors; third, the long-term unbalance of domestic savings and investment; fourth, the capital flowed cross countries which is not recorded.As a presentation of unbalance of international payment, the double favorable balance brings a lot of negative effects to our country. The excess liquidity problem and the pressure of inflation are predominant; the effect of currency policy has been diminished; the distribution of our country's capital and resources are unreasonable.To solve the above problems, we should make changes in the following aspects. First, adjust our foreign policies; second, take effective measures to change the situation of unbalance of domestic savings and investment; improve the foreign formation mechanism of RMB exchange rate and the exchange management system; fourth, encourage companies to invest aboard and make better situation for them; last, strengthen the cooperation with other countries.