By Wang Zhao　

Date: 2004/03/08

Abstract: 　

Since 1978, the development of China's foreign trade and FDI has not only provided great amount of capital but has also become a major source of foreign exchange reserve. This situation has been of great significance to the balance of payment and financial stability in China. However, the expansion of accumulated export volume and FDI amount could also be a potential threat to the sustainable stability of the current account. For the purpose of eliminating the negative impact on the balance of payment, adjustments should be made in the existing patterns in import and export and FDI introduction.