China's foreign exchange reserves near record $4 trillion

[Skull and Bones]

Best investment for China will be agricultural lands in Africa, as food resources will be stretched in coming decades and that will be a trump card for China.

 

[bolo]

China can take these worthless t bills, convert it to cash and buy up resource companies.

 

[itaskol]

Best investment for China will be agricultural lands in Africa, as food resources will be stretched in coming decades and that will be a trump card for China.

our PM Li keqiang said similar yesterday in Africa.
holding large foreign exchange is a not a good thing，
we should invest

 

[Skull and Bones]

our PM Li keqiang said similar yesterday in Africa.
holding large foreign exchange is a not a good thing，
we should invest

Yes, my views matches to that of your head of the nation. That means i'm a serious contender for the post in next election.

 

[cirr]

We need to create 4 development banks for

（1）Asia
（2）Latin America
（3）Africa and
（4）the rest of the world

Huge banks，each with starting capital of 200 billion USD or more。

 

[itaskol]

Yes, my views matches to that of your head of the nation. That means i'm a serious contender for the post in next election.

IF I am the leader， I will invest 1000 Billon to pakistan

 

[Skull and Bones]

IF I am the leader， I will invest 1000 Billon to pakistan

Sure, i'd have done the same.

 

[Beidou2020]

China is actually using foreign exchange reserves for economic development of other countries and transferring the money to Chinese companies indirectly.

Chinese government gives out loans from the foreign exchange reserves to developing countries for things like infrastructure projects and various energy, transportation, telecommunication projects. The companies that build those projects (energy, telecommunication, roads, rail, ports, airports, bribes, waterways, pipelines, waste disposal, etc) must be Chinese companies. So various Chinese companies get contracts to develop these projects from these developing countries that are essentially paid with the money loaned out by the Chinese government from the foreign exchange reserves.

For example, if Kenya wants to develop their telecommunications, China uses the foreign exchange reserves to give a loan to Kenya with the string attached that the company that builds the telecommunications infrastructure must be a Chinese company (either Huawei or ZTE). So Huawei or ZTE gets contracts and gets revenues from completing the project. Kenya pays Huawei or ZTE with the Chinese money loaned out to them.

This is one way Chinese government is diversifying the foreign exchange reserves from treasury buying. This way Chinese companies benefit, developing countries benefit and China gets better use of its foreign exchange reserves.

 

[Pandora]

China is certainly an example to follow. Congrats on another achievement.

 

[Chronos]

Exactly.

America had a chance to stop us, maybe 10 years ago. But now it's too late, their budgets are sourced from Chinese loans. They can't sanction us like they are trying to do to Russia, there is too much economic interdependence now.

What we need to do is hold off America until we reach a decent level of power, say in 1-2 decades time. We need to buy time to finish our current phase of economic development, and we are succeeding in that goal. No one is willing to physically intervene to stop our enormous economic expansion.

@Chinese-Dragon @Raphael

Please have mercy future overlords

 

[jandk]

@Chinese-Dragon @Raphael

Please have mercy future overlords

Chinese do not deserve our admiration!

 

[Chronos]

Chinese do not deserve our admiration!

The Chinese get things done, a concept alien to our part of the world.

 

[jandk]

The Chinese get things done, a concept alien to our part of the world.

 

[Dem!god]

IF I am the leader， I will invest 1000 Billon to pakistan

I wish ur leaders listen to ur call.......

 

[Al Bhatti]

This is getting silly. We should be diverting more of our reserves into the CIC branch of our currency reserves, i.e. the China Investment Corporation. Which is responsible for investing in real assets across the world, such as "land" in Ireland/Kazakhstan/Ukraine, resources all over Africa, infrastructure in Britain, ports in Greece, etc.

That will give us a better return on our money, and give us more influence in the global economy as well. Real assets are better than treasury bonds any day.

UAE is doing the same