China's Excessive Foreign Currency Reserves Signal Economic Power and Risks.
China's foreign currency reserves have shifted from being insufficient to excessive over the past 30 years. The surplus reserves show China's strong economic position globally and its ability to handle risks. However, they also reveal issues within China's financial system. To address this, steps are suggested to improve the financial market and foreign currency management system. The aim is to move excess reserves from the government to the people and support the strategic growth of foreign currency reserves in China.