The Influences And Countermeasures Of International Capital Inflows On China's International Balance Of Payments

International capital flows have gradually replaced international trade as the main driving force of global economic development since 90s,20th century. In the development of the globalization, international capital flows, on one hand, provide necessary financial support for the economic growth of the developing countries, on the other hand, have some negative impacts on the their balance of international payments. Since the reform and opening up, China has adopted a positive policy to attract foreign investment, and has become one of the world's largest country in attracting foreign investment. In recent years, the number of international capital which flows into our country has been continuously rising; international capital flows have great influences on China's balance of payments. However, there are still some problems for the inflows and outflows of foreign capital due to the morbidity of the law system and the imperfect financial system. Therefore, under the condition of the financial opening, how to make up the lack of funds by introducing and utilizing foreign capital, while reducing the bad effects of the international capital flows on the balance of the payments and maintaining a stable development of the macro economics is a practical and significant problem we are facing.Through the discussion of the theories of the international flows of capital, with the relevant data of recent international balance of payments, this paper analyses the impacts on the balance of payments. Since the analysis of the impacts on the balance of payments is essentially an analysis of the book value of balance of payments statement and an exploration of the underlying causes of its abnormity, the first five chapters focus on the analysis of China's international balance of payments, including the analysis of the total account and the detailed accounts. Besides,the analysis of the international capital flows is also another focus of the first five chapters, because nowadays, the form and the scale of the international capital are constantly changing, which requires us to make a concrete analysis of each specific question, a little change of a detail may lead to some changes of the balance of payments.This thesis includes:The first part is the introduction, which mainly describes the background, the purpose, the research methods and the structure. In this chapter, through the elaboration of the background and the problems, the research of this paper can be consistent with the situation of China at present, which is of great practical significance; the description of how the research methods were chosen enable the author to explain the corn content more clearly and meet the academic requirements, thus this paper has academic significance.Chapter second relates the related theory of international capital flows, focusing on the summary of the research results of the well-known economists in history. As international capital flows involves many countries, and different countries have different conditions, the economists are always make analyses on their own point of view, then the result are quite different from each other. In general, international capital flows will be an inevitable trend with the development of the economic globalization.The three chapter describes the definition of the international balance of payments, the status of China's international balance of payments, the research of both the foreign scholars and domestic scholars on the relationship between the international capital flows and the international balance of payments. The double surplus is one of the main problems of our international balance of the payments accounts over the last ten years, which leads to the constant increase of the foreign exchange reserves, thus leads to the huge amount of money supply, then the inflationary pressures generated; the focus of domestic and foreign scholars' research includes two aspects:one is the positive effects, such as the optimization of the export structure, the other is the negative effects, such as the profit back.Chapter four is the core of this paper, analysis of international capital inflow's ffection on Chinese Balance of Payments. This part explains international capital inflow's affections on Chinese balance of Payments through analyze the four accounts of the Balance of Payments Table. International capital inflow is the direct ingredient that leads to capital account and financial Account's increasing. With regard to current account, this paper analyzed its affection on import and export, trade in goods, service trade, and income account, because according to the analysis of chapter 2, these accounts, especially trade in goods and service trade contribute 84% to current account. Current transfers are determined by nation's political instance, so this paper doesn't detailed argue about it.Chapter five is some Suggestions about how to improve equilibrium of balance of payment; it's another important part of this paper. The suggestions are followed the central problems that our country's balance of Payment are facing. One is about the Policies of drawing foreign capitals; the other is from the point of the regulatory agency. The former is the policies designed to meet the development of China's international balance of the payments which is based on the objective economic conditions; the latter is the subjective management of the international capital flows which can lead to the international imbalance of payments. Only the combination of both of them can be the better methods to solve the problems at present.