英语六级必读评论.docVIP

Debtor has edge over creditor High profit ratio of US capital contrasts sharply with the low return rate of Chinas holdings of dollar credits The China-United States economic imbalance usually refers to the imbalance between the two countries in current account, in which China enjoys a huge surplus and the US a large deficit. Such an imbalance also profoundly reflects the uneven distribution of rights and interests between the two powers - China as the worlds largest creditor and the US as its biggest debtor. Sino-US relations have long been a kind of mutually reliant relationship built on an asymmetrical basis. An analysis of both countries foreign financial assets, liabilities structure and their investment-profit ratio will show that the US, despite being the worlds largest debtor, still enjoys a positive investment to return ratio, a ratio that is far higher than Chinas net assets yield ratio as the worlds biggest creditor nation. From the perspective of international investment efficiency, China is a global creditor with a negative wealth effect. Statistics show that China suffered a negative international investment-return rate for most of the years from 1990 to 2008, with an accumulated deficit of $60.553 billion - a huge loss of the countrys national wealth. A look at Chinas International Investment Position also shows that its reserve assets accounted for as high as 66.73 percent of the countrys foreign assets from 2004 to 2009, 63.56 percentage points higher than that of the US. In its foreign debt, the value of foreign direct investment (FDI) accounted for as high as 59.96 percent during the same period, or 55.21 percentage points higher than that of the US. Such an imbalanced assets and liabilities structure has resulted in a low return ratio in its international investment. It is also an indication of Chinas inadequate ability to control its foreign economic exchange. Ironically, being the largest debtor nation has not restrained the mammoth that i