The Negative Influence And Countermeasures Of China's Huge Trade Surplus

Against a background of china's dramatic increase in trade surplus, this paper made theoretical and empirical analysis to the trend of increase of china's trade surplus, and pointed out the structural characteristics of development of china's trade surplus. This paper also discussed the potential risks of tremendous trade surplus to economic development and, as an emphasis; it provided measures to the possible risks. Research of this paper led to following policy contributions: firstly, china should change current surplus-pursing trade strategy, optimize its trade structure, and shift its trade growth mode; secondly, china should promote its domestic-demand-oriented economy; thirdly, foreign exchange rate of Renminbi should be adjusted and the use of foreign reserves also should be appropriately guide; and fourthly, trade frictions with trading partners should be settled properly in order to create a healthy external environment for domestic exporters. All these policy suggestions are aimed at promoting china's sustained economic development.This paper was arranged as follows:In section one, the background of topic selection,methodology,main ideas of this paper and conclusions are presented.In section two, a brief introduction of china's trade surplus was made. Also in this section, the structural characteristics and the causes of china's tremendous surplus were discussed.In section three, the effects of china's tremendous trade surplus on economic development were discussed.Based on the above analysis, policy suggestions were provide in section four. we should process trade friction with the related national properly, so we can create better external environment for the enterprise.