Chinese-Dragon
RETIRED TTA
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CD you understand that currency reserves are not liquid
Of course. I'm simply using it as a way of demonstrating the scale.
Money is typically diverted to the CIC (China Investment Corporation) branch of the Chinese currency reserves, for investment in "real assets" across the world.
Of course, we can't divert all of it into the CIC, but what we can divert is already so much that our investment is running out of places to go.
Hence our massive outwards investment in recent years, even offering to finance a third of India's infrastructure plan over the next decade. If there is an opportunity, our money will find it.