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People's Daily Online>>China Politics

Official defends foreign reserves

(China Daily)

09:51, December 03, 2011

BEIJING - China cannot use its foreign exchange reserves to rescue other countries, Vice-Foreign Minister Fu Ying said on Friday.

"The argument that China should rescue Europe does not stand, as reserves are not managed that way," Fu said.

She stressed that China's $3.2 trillion in foreign reserves should be managed under the principles of "safety, liquidity and proper profitability."

"China's purchases of European bonds, International Monetary Fund bonds and US bonds are also based on those principles," Fu said.

There are many misunderstandings about the use of China's foreign reserves, she said.

"Foreign reserves aren't domestic income or money that can be disposed of by the premier or finance minister," Fu said. "Foreign reserves are akin to savings, and their liquidity and safety should be ensured."

Since the outbreak of the European financial crisis, China has increased its imports from the continent, with trade volumes up 20 percent over last year, Fu said.

"China is not absent from international efforts to rescue Europe. It has been a positive and healthy participant," Fu said.

She also said that China's investment in Europe should be de-politicized, adding that China will not seek power and interests through financial means.

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ASEAN at 2011-12-04220.255.2.*
Please allow me to give an impartial view regarding China"s reserve. China"s reserve is exactly like a person’s saving. Basically a person life got three phases. The first phase is educating oneself. A person study hard when in primary and high school. Before going to university, one needs to understand the future demand for the industries he or she would be studying. After graduation is the second phase. One need to go to work hard and long hours to build up one’s career and enable one’s to save more and more. After having enough saving one’s needs to buy house and start a family. The great amount of money in the bank account is through one’s planning in education and one’s hard work. This is the undisputed fact. The third phase is retirement period. When one retired from official work, the only passive income that one has is through the amount that one’s save during the period of his or her working life. Now in every city in the world how many rich man, who had accumulate millions through their hard work, lend money to the poor neighbours ? Is it an offence for a rich man not to lend money to the poor neighbours ? Is it the rich man’s fault when your neighbours enjoy life for the past fifty years and go for long holidays and did not plan and save enough for their retirement ? Now China is somewhere at the second phase where everyone work hard and save through decades of hard work. China’s reserve are to be used for its country development and for taking care of its 1.3 Billion people. Please bear in mind that there are still millions of people in China who are still consider poor by world standard. As China is still a developing country, you should use the reserve solely for China’s development and to take care of your aging population. You should not use your reserve to help other countries whose governments did not plan long terms and its people enjoy life for the past fifty years. Every sensible human beings would know very well that China needs to uplift the life of its million of people first before China can talk about helping others.
PD User at 2011-12-0480.94.16.*
2011-12-3.I to be afraid of lose chinese money to West.Never not to help bankrupt.They to drag China in their bog.Needed to realize oneself that they system politic-economic"s to fall.They not any have new conception-die.To lie and cryning over own funeral.Historycal paradox-chinese communism win.
wende at 2011-12-0371.251.41.*
China should not feel guilty when she demands some rights in return. When one borrows money from the bank, the bank asks for your collateral or other assets you have. The banks do not feel guilty so why should China feel guilty. It is the nature of trade. EU asks money from China and yet belittles China by restricting trade and claims China is not a market economy and does not want to have more rights in IMF. Should Italy have same or more rights than China? Should Italy remains in G8 when its economy is in shambles?
PD User at 2011-12-03125.162.161.*
thats a bull shitt,did you aware?did you think?you do not ......,a mature indeed,China wont be great without their endless heroes.without Chairman Deng,what can you do now?same or less like N Korea.
helen at 2011-12-03175.142.202.*
Risks and National Security issues when overwhelmingly "Riding The Weimar US$ Tiger" and beware what the United States vile schemes of things in stock for China. Complacency can be your Waterloo!
  

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