11min chapter

Odd Lots cover image

The Four Big Structural Forces Holding Back China's Economy

Odd Lots

CHAPTER

China's Foreign Exchange Strategy

This chapter explores the dynamics of China's foreign exchange reserves, detailing their decline from $4 trillion to $3 trillion and the strategic decisions behind their management. It examines the impact of these financial strategies on China's foreign policy goals, including initiatives like the Belt and Road Initiative, while considering the risks associated with diversifying investments. The discussion highlights the intersection of China's political control and economic growth, emphasizing the challenges posed by state influence on consumer spending and economic expansion.

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