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China's Trade Surplus Essay

1979 words - 8 pages

Course Paper Evaluation for Undergraduate Students
|For teachers | | |
| |Academic Year : 2012–2013 Semester: 1st [√ ] 2nd[ ] |Course Type : |
| |Course Title __China’s foreign trade _ |Compulsory[ ] Optional[√] |
| |Submission Date __Dec 5, 2012_ ____ | |
| | ...view middle of the document...

|Students should demonstrate serious attitude toward academic research in the essay. |

[Abstract]: China's international payments imbalance is increasingly cause for concern. China's international balance of payments surplus in the long-term lead to excessive growth of China's foreign exchange reserves, making the hedge foreign exchange reserves caused by excessive proliferation of liquidity into the monetary policy is now one of the important tasks. Therefore, our analysis of the reasons for the current international balance of payments surplus and some serious image, can China's current macro-control policy choices have important significance.

Taiwan's formal accession to WTO, the total foreign trade has maintained rapid growth in exports of capital, the share of technology-intensive products has also increased year by year, to promote long-term stability of China's economic growth. However, the resulting problem is very serious; especially the trade imbalance is increasingly attracting attention. Total amount of China's foreign trade surplus in 2004 is only 31.98 billion U.S. dollars, representing an increase 25.6% over the same period last year; in 2005 China's foreign trade surplus totaled 101.88 billion U.S. dollars, 3.19 times in 2004; in 2006 China's foreign trade surplus totaled 177.47 billion U.S. dollars, but also compared to 2005 increased by 74%.

First, leading to the main reason for the international balance of payments surplus

Theoretical explanation of international industrial division of labor in one industry after the country's development to maturity will cause industry exodus. 70, 80 years from the twentieth century began, the United States and Europe, and Japan and other developed countries to shift labor-intensive industry, Asian countries, has created Asia's newly industrialized countries. After 20 years of development, labor-intensive industries began to shift our country, and China's abundant cheap labor combined. This is a substantial increase in China's exports causes. But as China's economic development, raising the level of income, imports did not increase along with the substantial increase in national income.

1. Insufficient effective demand
China's import growth rate of decrease is mainly due to insufficient effective demand. In recent years, China and major trading partners of the import growth rate there is a clear downward trend, such as 2005, China to the EU, U.S. imports increased by only 5% and 9.1%, far lower than the 28.8% and in 2004 31.9%. In 2006 because of China's imported aircraft, integrated circuits and other developed countries in Europe and the United States has a comparative advantage in the amount of goods to faster growth (compared to 2005 grew by 71.5% and 30.4%), so our country and the European Union, the United States import growth between the the rate...

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