The current situation of China's balance of payments is generally a double surplus, that is, there are huge surpluses in both the current account and the capital account.

This situation has a good side, that is, the substantial increase in net exports has stimulated China's economic growth, and a large number of foreign direct investments have also provided more necessary funds and technology for China's economic development. At the same time, it has promoted the accumulation of China's foreign exchange reserves and enhanced China's ability to cope with international shocks.

However, this situation also has huge drawbacks.

First, it has led to constant trade friction between China and foreign countries, worsened the external conditions for economic development, and may become the payer of global economic imbalance.

Second, the accumulation of huge foreign exchange reserves has led to the passive placement of money by the central bank, leading to the flooding of liquidity in China. At the same time, China's foreign exchange management authorities put forward higher requirements on the management level of foreign exchange stock.

Third, the huge current account surplus actually represents the transfer of actual resources, among which the extensive trade growth model and institutional problems are even more worrying.

Fourth, the export-oriented development strategy leads to China's high dependence on foreign countries and its economy is vulnerable to the influence of other countries.