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China surplus in Current Account?


There are many large investments being made in China yet China has a surplus in its Current Account? Can someone explain why this happens?

large investments are due to government investment and foreign capital competing to get into the large chinese market.

current account surplus represents the difference between exports and imports. Chinese exports are much larger than the chinese imports which results in current account surplus. the reasons why chinese exports and competetive is due to the efficiencies of scale( large volume of good produced with tiny margins), fixed exchange rate, poor competence in the other parts of the world etc...

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