Hot Topics Of China'S Economy In 2010
26483 billion US dollars, which is the balance of China's foreign exchange reserves as at September 2010.
10600 billion dollars, which is the total amount of foreign direct investment absorbed by China in the same period.
906 billion 800 million US dollars. This is the balance of treasury bonds held by China in October 2010.
Next year, foreign investment will attract 100 billion dollars.
...
In the era of globalization, China's economy is increasingly closely related to the world economy.
China is creating wealth and exporting capital at an unprecedented rate. At the same time, China is attracting foreign capital and importing capital at an unprecedented speed.
Therefore, a question that people care and feel puzzled is coming out: after more than 30 years of reform and opening up, is China "rich" or "short of money"?
In fact, sitting on huge foreign exchange reserves and actively attracting foreign investment is just one of the numerous "doubts" of China's wealth in the era of globalization.
Exports and imports, reserves and investment, quality and efficiency, China and the world...
Each group of topics has been implicated extensively, reflecting the complexity of the interaction between China's economy and the world economy in 2010.
To solve these "doubts", we need to avoid specious views and avoid erroneous rumors, but in the final analysis, China needs to accelerate the pformation of the mode of economic development so as to achieve all-round, coordinated and sustainable development of the economy and society.
China is sitting on huge foreign exchange reserves, but it also imports a lot of foreign capital. Why foreign exchange reserves can not be used for domestic investment?
According to the data released by the people's Bank of China in October, as of the end of September, the balance of China's foreign exchange reserves stood at 26483 billion US dollars, up 16.5% over the same period last year.
In recent years, China's foreign exchange reserves balance ranks first in the world. China seems to be "not short of money", but at the same time, China is still vigorously attracting foreign investment.
Why can't China directly use foreign exchange reserves for domestic investment?
Foreign exchange reserves are assets held by a country's monetary authority and convertible into foreign currencies at any time, including cash, foreign bank deposits, foreign securities and so on.
Although foreign exchange reserves are also a national wealth, they are mainly used for import, repayment of foreign debt, foreign investment and regulation of foreign exchange market.
Zhang Bin, deputy director of the International Financial Research Institute of the Institute of world economics and politics of the Chinese Academy of Social Sciences, has said that if foreign exchange reserves are used in China, there will be "two time settlement" risks, which will cause inflation and other problems.
For example, if the people's Bank of China sends 1 trillion US dollars of foreign exchange reserves to domestic enterprises and people, the latter will have to convert foreign exchange into Renminbi if they want to invest and consume in China.
This is equivalent to the central bank's "left hand" issue of foreign exchange to enterprises and people, and the "right hand" issue equal value RMB, which will collect foreign exchange from enterprises and people.
This is the so-called "two settlement" risk.
In the process, domestic wealth has not increased, while the amount of currency issuance has increased, which will lead to an increase in inflationary pressure.
There are still more complex and important reasons for China's efforts to attract foreign investment. Historically, in the early days of China's reform and opening up, there was a lack of funds and an urgent need to attract foreign capital to develop the economy.
At present, the focus of China's attracting foreign investment has been changing quietly. In the future, more attention will be paid to the quality and efficiency of foreign capital utilization, especially the combination of utilizing foreign capital and adjusting the structure and changing the way of economic development.
Expanding exports is conducive to the accumulation of national wealth, but the negative effects of the imbalance of international payments should not be underestimated.
In the process of coping with the international financial crisis, stabilizing external demand and expanding domestic demand has become an important "pushing hand" for China's rapid economic rebound.
From a global perspective, many countries, including the United States, have proposed expanding exports in the post crisis era as an important means to achieve economic recovery.
In the era of globalization, the main role of exports lies in giving full play to the comparative advantages of various economies, strengthening strengths and circumvent weaknesses, exchanging common needs and common development.
For example, the garments produced in China are cheap and fine, while the fruits produced in Southeast Asia are cheap and fine. China can export garments with competitive advantages to the fruits of Southeast Asia.
Even though the total number of garments and fruits produced by both sides did not increase, the overall welfare of both consumers increased because of the exchange.
It can be seen that the purpose of exports is to exchange products and services of other countries with comparative advantages, thereby improving the public welfare of our country.
If exports exceed imports, trade surplus and foreign exchange reserves will be accumulated.
The Chinese Social Sciences Document Publishing House published the blue book on China's financial crisis test in November. It pointed out that China exported the resources and cheap labor force to the European and American markets in the form of foreign trade products, but the domestic people did not fully enjoy the benefits of the "world factory".
At the same time, the blue book believes that the huge foreign exchange reserves constitute a severe test of China's wealth security.
If we blindly pursue exports, China may also face a series of difficulties, such as the surplus in China, profits in foreign enterprises, but the pressure of energy, resources, environment and international trade is in China.
Under the aura of "world factory", China is burdened with heavy burden of rapid consumption of resources and energy and deterioration of the environment.
At the same time, the imbalance of international payments can easily lead to trade frictions and disputes between China and its main trading partners.
For this reason, in recent years, the Chinese government has always emphasized the promotion of balance of payments.
foreign exchange reserve
China's national wealth is facing a shrinking threat.
Huge foreign exchange reserves as a national wealth, is of great significance.
It can meet China's huge import demand, guarantee China's international payment capability and expand foreign investment, which is conducive to China's participation in international economic governance and resisting international financial risks.
China's foreign exchange reserves rank the first in the world, with strong competitiveness in China's exports and attracting more foreign capital, and also related to overseas financing activities of Chinese enterprises, increased investment in foreign exchange reserves and the influx of "hot money".
But in terms of global measurement, China's foreign exchange reserves are significantly higher than China's total economic output and import and export, foreign debt and foreign investment.
The increasing foreign exchange reserves can be seen as a clear evidence of increasing national wealth. It can also be seen as a low performance in the utilization of national wealth.
On the one hand, China's domestic investment and consumption space is still very large; on the other hand, we have a large amount of foreign exchange reserves can not be used, and can only invest in low yields such as US Treasury bonds.
This is like a family, on the one hand, there are many needs to be satisfied, on the other hand, there is a lot of spare money in the bank.
If we take into account various factors such as foreign currency depreciation and inflation, China's huge foreign exchange reserves will be threatened by actual purchasing power.
Gross domestic product
Very important, but "GDP theory" has long been out of date.
GDP, or gross domestic product (GDP), refers to the market value of all the final products and services produced by a country or region within a certain period of time. It is one of the most commonly used indicators to measure the economic situation of a country.
In recent years, the defects of GDP have attracted more and more attention.
GDP reflects the market value of all final products and services, but it does not reflect the way and process of producing these products and services.
For example, the same is the value of creating 10 billion dollars, some rely on excessive consumption of resources and energy; some are more environmental friendly, green, such as modern service industries; some rely heavily on capital and labor, that is extensive development; others rely on technological innovation, management improvement and efficiency improvement, that is, intensive growth.
Moreover, as the concept of inclusive growth is getting more and more attention in the world, it is also different from who will enjoy the $10 billion products and services, which is related to the reform of the national income distribution system.
Because of this, during the "12th Five-Year" period, China's economy will consider more about how to achieve better development, rather than merely emphasizing faster development.
Good development must be resource-saving, environment-friendly and technological innovation. Good development must enable all members of society to share the fruits of development and achieve inclusive growth. Good development must promote the comprehensive, coordinated and sustainable development of people and society.
From a global perspective, in the international financial crisis, more and more countries are paying attention to green growth, innovation growth and inclusive growth.
Due to historical reasons, China has missed several waves of "technological revolution".
But in twenty-first Century, it is possible for China to accelerate the pformation of economic growth mode, seize the commanding point of the development of strategic emerging industries, and strive to seize the opportunity and lead the trend in the new "scientific and technological revolution" wave.
China needs development, but China needs to join the world.
Development
Over the past 30 years since reform and opening up, a large number of foreign-funded enterprises have entered the Chinese market, from manufacturing and production to selling and circulation, and have gained huge profits from it.
Some people wonder why Chinese money can not be made by the Chinese themselves.
In the final analysis, this is actually why China should adhere to the strategy of opening up mutually beneficial and win-win.
Practice has proved that in an era of globalization, no economy can close its doors to produce and consume.
In an important field and strategic industry involving the national economy and the people's livelihood, a country needs to maintain its independent and independent development capability.
But these industries are limited.
In many other industries and fields, the introduction of foreign investment will bring more choices of products and services, help to enhance market competition, improve market efficiency and improve consumer welfare.
In the era of globalization, it can only be a narrow economic nationalism performance if we continue to distinguish between "domestic and foreign", "China" and "foreign" in all industries and fields.
This is inconsistent with the development trend of modern economy, and is inconsistent with China's accession to the WTO.
The central economic work conference put forward that China will continue to pursue a mutually beneficial and open strategy.
China's domestic investment environment will become more standardized and pparent.
China's rational and efficient use of foreign capital will not only help promote China's domestic economic development, but also help global investors share the opportunities brought by China's development.
In the next ten years, China is still in a period of strategic opportunities that must be firmly grasped and can make a great progress.
To safeguard the strategic opportunity period, China needs to continue to adhere to the win-win strategy of opening up.
China's development is inseparable from the world, and the development of the world is also inseparable from China. This requires China and the international community to share responsibilities and share development opportunities.
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