Balance of Payments

Amid persistent surpluses, China is striving to achieve a better balance in its international payments in 2008.
According to a senior government official, one option China is considering is increasing exports of high-technology and high value-added consumer items. Other alternatives being weighed are; decreasing less aggressively sought exports and being more selective with what imports China will allow.

The Renminbi is China’s local currency. The policy package being looked at by the Chinese Government also includes an exchange rate-molding mechanism that will improve the exchange rate of the Renminbi.
Some foreign analysts have indicated that the importance of the exchange rate of the Renminbi has been enormously exaggerated.

Experts from China and other countries stated that the exchange rate is not the cure-all for balance of payment surpluses but that organized actions from both foreign and domestic exchange regulators are needed.