China's lack of innovation ability affects balance of payments

China's enterprises are weak in their ability to innovate, so as to introduce more foreign capital for the introduction of imported technology, and lack the ability to invest abroad, a lot of foreign exchange is difficult to have a higher return on investment "Caixin Net" (reporter Xiahai Tao intern Fei) Yu Yu, the former director of the Institute of World Economics　　The lack of technological innovation ability affects the balance of China's international balance of payments. At the November 7 Shanghai Pujiang Innovation Forum, Yu said there had never been any economy, like China, that maintained a double surplus of more than 20 years of regular and capital projects.　　Long-term double surplus, so that China's foreign exchange reserves up to 2.6 trillion U.S. dollars, this pattern is a loss of national wealth. He said China is a country with high savings and why it has to introduce a lot of foreign capital. The general analysis of economic circles that China's financial market failure, not effective allocation of funds, often have to introduce foreign investment.　　He believes that the lack of innovation ability is also a very important reason, which makes us under certain conditions, hope to introduce foreign capital.　　Yu said that, for many reasons, foreign investment returns higher, in this case, for local governments, of course, welcome foreign investment, so the domestic capital was squeezed out.　　Xinli, vice president of China International Economic Exchange Center and Deputy Director of Policy Research Department of the former CPC Central Committee, shared the view that the essence of double surplus is the direct reaction of China's low ability of independent innovation.　　He said that the introduction of foreign investment in the essence of more technology, China's enterprises investment capacity, weak profitability, the higher the degree of dependence on the technical external, resulting in "a large number of imported technology-intensive, knowledge-intensive products, export labor resource-intensive products," the status quo.　　At the same time, because China's enterprises lack the technology of independent intellectual property rights, even if there is a large number of foreign exchange, also can not spend, that is, Chinese enterprises lack the ability to use foreign currency to invest abroad, a large number of foreign exchange has to buy low returns of U.S. Treasury bonds. He suggested that by improving the innovation capability of Chinese enterprises, increasing the rate of return on investment, reducing reliance on foreign investment technology, increasing the efficiency of domestic funds, and thus taking back the investment market, it would reduce or even correct the imbalance of payments.