China Will Become The Source Of Global Capital In The Past As A World Factory.

Hong Kong media: China is bidding farewell to "world factory" as the source of global capital.

Under the guidance of the new helmsman, China is in the process of pforming from a closed state owned economy to an open market economy.

China has become the second country with 10 trillion gross domestic product after the United States, so China's economic pformation process will undoubtedly have a profound impact on the world, according to the recent statistics released by China commentary, citing the Bloomberg News in January 29th.

The following five characteristics indicate that China is developing "

"Good-bye" has become an important source of capital and demand globally:

First, the current account surplus is gradually decreasing.

China has maintained a large current account surplus for a long time because of its far exceeding exports, which has long attracted unwarranted sharp criticism of "undervalued RMB and Chinese people taking away American jobs".

But now, China's current account surplus has fallen to less than 2% of the total economy, far below the peak of more than 10% before the global financial crisis.

Two.

Reduce.

The side effect of China's export led growth pattern is the rapid increase in foreign exchange reserves. China's foreign exchange reserves have reached about US $4 trillion in the middle of last year, but after that it began to drop slightly.

Now, the Chinese government is looking for more practical uses for foreign exchange reserve funds, such as helping domestic enterprises to "go out", expand overseas business or undertake overseas mergers and acquisitions, instead of buying Treasury bonds.

At the same time, the central bank's ceasing to intervene in the foreign exchange market and the recent outflow of capital probably means that the peak period of China's foreign exchange reserves has become the past.

Three, change from attracting foreign direct investment countries to foreign investment countries.

China has always been a magnet attracting foreign investment, and global enterprises are competing to invest in China and strive to win a share in the Chinese market that promotes rapid economic growth in manufacturing.

With the gradual lowering of foreign investment fever and overcapacity to push Chinese enterprises out of the country, the scale of China's foreign investment will exceed the scale of foreign capital utilization this year.

Four, low cost and sufficient funds.

Sanjeev Sanyal, a global strategist at Deutsche Bank, said in a report released this month.

Transformation from the investment driven growth mode may lead to low interest capital flooding the world.

According to the report, China's domestic investment now accounts for 26% of the total investment in the world, compared with 4% in 1995.

Due to overcapacity and aging of the population, domestic investment will be reduced. China's large surplus capital is bound to surge to foreign countries.

According to the report, considering the huge size of China's economy, its capital outflow will also be quite large. Even if the main central banks of the world tighten monetary policy, the scale of China's outflow capital will be enough to push down global long-term capital costs.

Five, the number of Chinese travelling abroad has increased rapidly and is very large.

Thirty years ago, there were still a small number of Chinese tourists traveling overseas.

In 2014, China's overseas outbound tourism exceeded one hundred million people, which provided some help to Europe, Korea and Japan struggling in the plight.