A Study On Capital Flight In China

In the process of economic development,capital accumulation and investment often play an important role and become an indispensable production resource.Frequent economic and trade exchanges among countries have promoted the further development of economic globalization.Cross-border capital flows often play an important role.However,in the process of cross-border capital flows,there is a very hidden and inaccurate statistics of the flow way-capital flight,capital flight is usually easy to cause a great negative impact on the smooth and healthy operation of a country's economy.After Reform and Opening,especially in 1990 s,with a series of open policies,our country attracted a lot of foreign investment,but at the same time,the phenomenon of capital flight has become increasingly apparent.In the same period,the IMF correlation estimates indicate that the scale of capital flight in China is about 800 to 100 billion dollars.In 2001,China officially became a member of the world trade organization,with a more open attitude and extensive economic cooperation with all countries in the world.The great international market has made the rapid development of China's economy in the world.However,in recent years,the impact of macroeconomic fluctuations,the expected increase of the value of the RMB devaluation,the rising cost of labor and natural resources,resulting in a large number of speculative capital fled to China because of the excessive prosperity of the virtual economy,the overdevelopment of the real estate industry and the overvaluation of the state-owned assets,and the scale is expanding.At present,the process of internationalization of RMB has been steadily advancing.In October 1,2016,RMB became a member of SDR,which further widened the capital outflow channel while promoting capital inflow.From 2015 to 2016,in the past two years,the balance of non reserve financial accounts,errors and accounts outflows of the two projects on the balance of payments account for 1 trillion and 280 billion dollars,and the annual net capital outflows accounted for 6% of GDP.The capital outflow of such a scale has aroused the high concern of the relevant departments of our country,and has triggered a heated discussion in academic circles about whether there is capital flight in China.Through the comparison of domestic and foreign scholars on the concept of capital flight,the paper conclude that capital flight is way beyond a country's financial regulators control capital outflow.It is the transfer of domestic capital to foreign countries by various illegal or disguised channels,so as to avoid the risk factors of macroeconomic fluctuations,preferential policy adjustment,foreign exchange control change.The aim is risk minimizing and interest maximization.In the study of the scale calculation of capital flight,the paper adopts the direct measuring approach and the indirect measuring approach,the maximum guarantee basic data accuracy and applicability of the amendment,as far as possible to accurately grasp the scale of capital flight,andand its changing law is further analyzed.As a socialist country,the emergence of capital flight is closely related to the economic policies and laws and regulations of specific period and specific environment in China.After the reform and opening up,the super national treatment and the loopholes of open policy for foreign investment provide different convenient channels for capital flight,such as Current Account,Capital and Financial Account and Other Account.The emergence of each channel has specific objective reasons,both the impact of macroeconomic changes at home and abroad,and the lack of domestic system construction.The paper will explain the reasons for capital flight in detail,and then analyze the negative effects of capital flight on China's economic and society development.Finally,according to specific problems,we put forward targeted policy recommendations,to create a more high-quality macroeconomic environment for domestic and maintain stable and healthy economic development.