Final answer:
Chinese purchases of financial and real assets abroad exceeded foreign purchases of Chinese financial and real assets by $82 billion in 2018, given a $82 billion overall current account surplus and a zero capital account balance. The balance of payments records such transactions and in case of a surplus in the current account with a neutral capital account, the financial account reflects the net outflow.
Step-by-step explanation:
If China had a $82 billion overall current account surplus in 2018 and assuming China's net debt forgiveness was zero (meaning its capital account balance was zero) for that year, then Chinese purchases of financial and real assets abroad exceeded foreign purchases of Chinese financial and real assets by $82 billion. This is inferred because the current account surplus must be balanced by a net outflow in the financial account, excluding the capital account when that is neutral, according to the balance of payments identity.
To further explain, the balance of payments is an accounting record of all monetary transactions between a country and the rest of the world. These transactions are made up of the current account and the financial plus capital accounts. If there is a surplus in the current account, it means that the value of exports of goods, services, and transfers is greater than the value of imports. When the capital account is neutral, as it is in this question, the financial account would absorb this surplus, indicating that the country has invested more abroad than what others have invested in it.
For example, if this scenario were applied to the United States, and if domestic savings and investments remained unchanged but the government budget deficit increased, it would lead to an increase in the demand for financial capital. This demand would, in turn, have to be met by an increase in the supply of financial capital from abroad, generally resulting in a higher trade deficit. This means that the current account would move towards a deficit as the financial account moves to a surplus to fund the increased deficit from borrowing.