On October 29, 2016, Yu Yongding, member of Chinese Academy of Science (Academician), delivered a speech on China’s exchange rate regime and capital flow reform at the 2016 PKU Global Financial Forum. He pointed out that China's balance of international payments has shifted from the long-term “double surplus” in the past to the current “current account surplus” and “capital account deficit”. In consideration of this phenomenon as well as the current outflows of domestic capital, Professor Liu Zhibiao, Dean of Yangtze IDEI, raised the topic of the online discussion: “What are the reasons for China’s international payments to have changed from the previous ‘double surplus’ to the current ‘current account surplus’ and ‘capital account deficit’. Is it possible that the situation will evolve into ‘double deficit” in the future? What is the relationship between these changes and the change in China's industrial competitiveness? How should we formulate appropriate policies?”
