China's Foreign Trade Surplus Of The Causes, Impact And Policy Analysis

This paper focuses on the dramatic increase of China's trade surplus. The tendency of China's trade surplus was analyzed and the structural features of trade surplus were represented. The reasons of generation of China's trade surplus were analyzed internally and externally. The macroeconomics impact on China's trade surplus was discussed. China's trade surplus has rationalizations; nevertheless the continued China's high trade surplus generated a lot of assignable risks. Firstly, the trade surplus exacerbates the trade frictions between China and trading nations. Secondly, the trade surplus strengthens the speculators right to the expectation of a appreciation of the RMB. Thirdly, the trade surplus influences monetary policy independence. Fourthly, the trade surplus makes our country's dependence on foreign trade continue to increase. The continuing trade surplus finally is not propitious for the sustainable development of economy.Based on features, causes and impacts of China's trade surplus, adjustment policies of trade surplus are discussed from six aspects. The policies are implemented to achieve the balance of international payments and balanced development of economy. Firstly, expanding domestic demand, and transforming the patterns of economic growth; secondly, adjustment of the import and export policy to motivate import and restrict of export; thirdly, upgrading of the industrial structure, and multiply development of trade; fourth, intelligent use of our foreign exchange reserve; fifth, the pressure of appreciation of the RMB should be prudently responded; finally, coping with the trade frictions to generate a friendly trade environment.