China's Foreign Debt Regulatory System Research

Borrowing external debt is an important form in utilizing external capital. We have borrowed much external debt since 1980s. These foreign capital have played important roles in recommending advanced technology, equipments and management experience.Our country has adopted external debt supervision for many years. Before we controlled the scale of debt, we kept up the reasonable structure of foreign debt. So we could control the debt risk safely in total. But now we still haven't had a safe foreign debt supervision system. The risk of foreign debt has appeared, especially when the much of the short time debt entered China, the large companies are short of knowledge to avoid external debt risk, all these conditions can bring in hidden danger to China. The lessons of Asia Finance risk and Argentina's economy risk we can see.Finance risk told us that it would destroy a country's economy safety and social steady. The condition becomes more and more serious since we joined WTO. How to ensure the safety of external debt is an important task which is in front of the government and scholars.The study of debt supervision has begun for many years. Almost each country has put forward measures to study from different angles according to its national conditions. The theory about debt supervision is very little, this paper tries to introduce the importance of enforcing foreign debt supervision.The paper includes four parts and about thirty thousand words.The first part of this paper summarizes the theory of foreign debt supervision's aim, strategic, methods and system. In the same time, the writer compares the advanced international theory of external debt supervision in order to have a clear understanding.The second part declares the reasons of the developing countries finance risk. including Philippine, India, Thailand and International Bank's suggestion in order to enlighten China to perfect ours supervision's system. Then the passage declares the shortcomings of our country's foreign debt supervision system. The third part of this paper summarizes the subject, object and context of China's foreign debt supervision. The real object in China is Provincial Department of Finance, China's Plan Committee and China's Foreign Change Bureau. They cooperate with each other to be a complete system. The object is foreign debt. The content is foreign debt's borrowing, using and returning.The last part tells us how to perfect our country's foreign debt supervision's system from system and law angles.