Talk:International international investment position

I head a lecture by the cheif of Royal Bank of Scotland- China Breach. He said that the big surplus Of China are part from Net Export, while The other Part id so-called Hot Money. But I wonder, is this hot money the purchuse of Chinese assets, then it should be the cash inflow in terms of china. as the net Export equals net Cash outflow, it should redue the Chiese trade surplus? I kown there must be some errors of my speculations, but I can't find it. Looking forward to help!