Zhou Xiaochuan: Remarks on China’s trade balance and exchange rate Summary of remarks by Mr Zhou Xiaochuan, Governor of the People’s Bank of China, on issues related to China’s trade balance and exchange rate, at the China Development Forum sponsored by the Development Research Center of the State Council, Beijing, 20 March 2006.
*  *  *  Analysis of China’s trade surplus 1. The process of globalization, cross-border outsourcing and restructuring of supply chains has been accelerating in recent years, supported by IT revolutionary progress and the improvement of infrastructures. It now becomes possible to outsource those activities which would be difficult to outsource to foreign countries in the past. 2.