On the Chinese current account surplus.

• Author: Rees, Matthew
• Position: China - Brief article

"China's current account surplus has exploded in recent years from a modest $46 billion in 2003 to $250 billion last year. This puts Japan's $170 billion surplus of 2006 in the shade. China's current account surplus last year was 9.5 percent of gross domestic product, more than double the highest ratio Japan has ever achieved, 4.3 percent of GDP in 1986. If one adds the balance on flows of long-term capital (net foreign direct investment), the surplus in China's 'basic balance of payments' reached 12 percent of GDP last year."

"To put this in historical context, UK net foreign investment was 8...