China and China now have the largest foreign exchange reserves in the world. China's foreign exchange reserves reached US$ 853.6 billion, surpassing Japan to become the world's largest foreign exchange reserve country-as of February this year, China's foreign exchange reserves reached US$ 853.6 billion. According to the data released by the Ministry of Finance of Japan, the country's foreign exchange reserves as of the end of February this year were $850 1 billion. According to industry insiders, the above figures show that China has surpassed Japan for the first time and has the largest foreign exchange reserves in the world. In fact, from June 5438 to 10 this year, China's foreign exchange reserves increased by $26.3 billion to $845.2 billion, only $6.5 billion less than the Japanese foreign exchange reserve of $85 17 billion, the largest country in the world. The rapid growth of China's foreign exchange reserves is mainly due to the substantial increase in trade surplus. At the same time, on the one hand, the sharp increase in foreign exchange reserves has increased speculators' expectations of RMB appreciation; On the other hand, in order to stabilize the RMB exchange rate, China has been selling RMB to buy dollars in the foreign exchange market, which has fallen into a bad cycle, resulting in a sharp increase in foreign exchange reserves. The fundamental reason why the China government is afraid to use more foreign exchange is that the RMB is constantly appreciating, and China must constantly sell RMB to buy dollars, so as to slow down the appreciation of RMB, which is conducive to the growth of China's exports and avoid the impact of excessive appreciation of RMB.