China's International Investment Position Analysis

The rapid development of globalization of world economy, the increasing expansion of global trade and investment, and the growing size of global flow, all make the risks of one economy faced have increased greatly. Through the study of the balance of payment and international investment position (IIP) of one country, it’s better for us to measure and control the economic risks.In the era of crisis, China is facing an increasingly complex international economic situation. At the same time, China also is at an important stage of the domestic economic structural transformation. Under this context, the research of China grasp the economic development, draw up macroeconomic policies becomes a valuable.From the literature at home and abroad, the study of China’s balance of payment has relatively matured. But from another perspective, the research on the international investment position is still insufficient. Therefore, through the comparison of China with the developed countries (like America, Japan, Germany) and BRICS countries, this article attempts to find out the characteristics and possible problems of China’s IIP, and then puts forward policy suggestions. And through the research of IIP, it can help us analyze that how China sustains the rapid development, how to win more say for China in the international community. The further study of these subjects is very significant.This paper is divided into three parts. The first part is introduction. This part mainly introduces a background and significance of the thesis, and the direction, frame, innovation and shortcomings of the research.The second part is the body. The body has four chapters. The first chapter is about the basic theories of IIP. In this chapter, the article introduces the definition of IIP, and briefly summarizes the research of IIP at home and abroad.The core is the following three chapters. Through the comparison of China with the developed countries (like America, Japan, Germany) and BRICS countries, the part points out the characteristics and existing problems of China’s IIP. The author also finds that the growth of foreign assets is over foreign liabilities, the yield of foreign assets is significantly lower than the rate of costs caused by foreign liabilities.The last part is conclusion. On the basis of analysis of China’s IIP and overseas investment, the paper points that China needs to further improve the structure of IIP, then increase the return rate of overseas investment. The specifics include:to make the process of RMB internationalization more rapid; to promote development of QDII and encourage private capital to invest abroad; to improve the utilization of FDI; to promote development of Chinese securities market.