China to reverse substantive surplus in balance of payments

China is making measures in a bid to gradually reverse its substantive surplus in international balance of payments, according to the State Administration of Foreign Exchange Thursday.

China's balance of payments remained a "double surplus" in current account and capital account in 2004 while its foreign exchange reserve shot up to over US$600 billion at the end of last year.

It is a long-term target of the State Administration of Foreign Exchange to realize a moderate gain instead of large amount of surplus, said Wei Benhua, deputy director of the authority.

For such an end, the administration has taken a series of measures, which include reform in the management of foreign exchange account granting more rights for enterprises to utilize foreign exchanges; relaxing limits on overseas foreign exchange investment and supporting domestic enterprises to "go abroad"; selectively open securities investment in stages and expand the channels of capital flow; allowing Chinese citizens staying abroad to transfer their capitals and heritages in China abroad; allowing international development agencies to issue Renminbi securities in China.

According to Wei, the above measures will bring a change to the large surplus, which will promote a balanced development of the global economy.

By People's Daily Online