2006 First Half China International Balance of Payments Report

Author: International Balance of Payments Analysis Group, State Administration of Foreign Exchange
Publisher:
Publish Date: 2006-12-01
Features: In the first half of 2006, China's economy maintained steady and rapid growth, with brisk development in foreign trade, sustained substantial inflows of foreign direct investment (FDI), further improvement in the formation mechanism of the RMB exchange rate, and increased exchange rate elasticity. The balance of payments remained in a large surplus. Specifically, the current account surplus was $91.6 billion, and the capital and financial account surplus was $38.9 billion. As of the end of June 2006, China's foreign exchange reserves stood at $941.1 billion.
In the first half of 2006, the scale of China's balance of payments transactions continued to expand, with a significant increase in foreign trade, sustained high levels of FDI inflows, rising profits remitted by foreign-invested enterprises, notable growth in overseas securities financing, and rapid growth in foreign exchange reserves, which ranked first in the world. Currently, the imbalance in the balance of payments, particularly in goods trade, remains prominent. The large surplus in the balance of payments reflects both China's active integration into economic globalization and rapid development of its foreign economy, as well as deep-seated issues in China's savings-investment imbalance and economic structure and growth model. Promoting a basic balance in the balance of payments remains one of the key tasks for China's economic and social development.
This book covers an overview of the balance of payments, analysis of major balance of payments items, the operation of the foreign exchange market and the RMB exchange rate, the macroeconomic environment and policy adjustments, an outlook for the balance of payments situation and policy directions, and an appendix.