Economic upgrading must not be delayed

Since 2002, there has been increasing international attention to global imbalance and China has become its focus. By 2004, global imbalance had been described at various international forums with excessive imports by the United States and excessive exports by China, though both countries were acknowledged as the two engines propelling the world's economy.

After spending some time studying the issue of economic imbalances, I found that the external imbalance in the Chinese economy was embodied in surplus payments, whose negative impact is now clear. The internal imbalance in China's economy is more fundamental and persistent and has caused more serious consequences.

Internal and external imbalances in China's economy are not independent of each other. Rather, they are closely linked and aggravate each other. Absolute balance means zero growth, while excessive imbalance will also result in stagnation.