The remainder means: 1. As foreign exchange is used for export settlement, China's foreign exchange reserves have increased.
2. China's economy depends on exports.
3. Excess brings a lot of hot money.
Details: 1. Excessive surplus will make countries that maintain a trade deficit with China dissatisfied, such as the United States. So it will ask our local currency (that is, RMB) to appreciate. In fact, we bought a lot of American bonds. If the RMB appreciates, Americans can pay us a lot less. We sell less and receive less, which is a loss ~
2. The economy is over-dependent on exports, which is risky. Once the United States, Europe and other economies fluctuate or decline, it will directly affect China's export-related economy. Therefore, we should expand domestic demand to enhance our ability to avoid this risk.
To put it simply, hot money is money to make waves where they think it can add value. This money is only used for arbitrage, and it is very hateful not to make beneficial long-term investments! ~