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Since 2000, China has become a recipient of global foreign direct investment (FDI), while China's central bank has purchased large amounts of U.S. treasury bonds.

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Since 2000, China has become a recipient of global foreign direct investment (FDI), while China's central bank has purchased large amounts of U.S. treasury bonds. Briefly discuss these two activities' effect on China's balance of payments (BOP). (5 points) (Hint: Use the different types of BoP - Chapter 3.)

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