Analysis of People?s Republic of China?s balance of payment

Throughout history, China which had been the master of world trade, began to lose its significance with the outbreak of industrial revolution in Europe and after Mao Zedung proclaimed Peoples Republic of China in 1949, it became an isolated country from the rest of the world. Upon death of Mao ZEDUNG in 1976, Deng Xiaoping acceded and he took an important role in changing the country to its present condition by making great numbers of reforms in the fields of economy and politics, opening the the country and its trade to the rest of the world.China that gave the impression of having agriculture-based economy before 1980, nowadays has been keeping the leading position even in producing complex electronic devices and rapidly advancing the position of world?s largest economy.China which follows a foreign trade oriented growth strategy increases its importance in the world economy with both its export volume and foreign direct investment amounts day by day.On the contrary to the most developing countries, Peoples?s Republic of China doesn?t have difficulty in balance of payments thanks to the success of policies that China follows, both country?s balance of current and capital accounts have surplus continually. Besides foreign trade?s having an important share in the country?s economy, with the increasment of the importance of the country?s economy in the world economy each passing day, progress of country?s balance of payments leads the progress of world economy and increases it?s importance day by day.