Edited and translated by People's Daily Online
Fluctuations in cross-border capital flows intensified in China at the end of 2011, putting the country under great capital outflow pressure due to both domestic and foreign market and policy factors, the State Administration of Foreign Exchange (SAFE) recently said.
China is expected to maintain a surplus in international payments in 2012, but the surplus will fall sharply with greater volatility. The country’s international payments are gradually moving toward balance.
China’s international payments will move closer to balance this year mainly for four reasons. First, the European debt crisis and slow global economic recovery will have a negative impact on China’s export growth.
Second, China’s foreign trade development will be more balanced, and current account will move closer to balance, as the country continues to accelerate transforming its economic growth model.
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