These foreign exchange reserves can only be regarded as a weapon for China to ensure external economic security and global expansion. A large amount of foreign exchange reserves can ensure that China's balance of payments does not appear problems, and it has a strong international payment ability, such as large-scale purchase of resources and overseas investment, in fact, in order to ensure the financial security of the exchange rate market. A large amount of foreign exchange reserves have the ability to intervene in the RMB selling in the exchange rate market. But again, a large amount of foreign exchange will lead to the pressure of RMB appreciation, but this is another problem. Third, a large amount of foreign exchange is conducive to China's financial expansion. For example, China can make a seller's loan, just as Pakistan buys a plane from China, and China also gives a loan to the plane. This seems to be a loss. In fact, it is a way to replace foreign exchange assets with creditor's rights, which has many advantages. First, it will open the market of China products, and it will have the opportunity to occupy the market first. Second, although these debts are denominated in US dollars, these debtor countries are generally unable to repay them, so that China can convert American debts into debts at a later stage. Third, a large amount of foreign exchange can be used as the basis of currency swap. In terms of external economic security, there is a more important role in hedging the debt dilution and loss caused by the flood of currency liquidity. In fact, with the currency of Europe, America, Japan and other countries over-issuing, China's foreign exchange reserves almost increased, which played a stabilizing role, though helpless.

In the resource market, a large amount of foreign exchange basically ensures that the supply of resources will not be too big a problem. Although China is really passive in pricing power, it is important that the milk developed by China cannot be broken. Of course, this has another purpose, which is to attack the purchasing power of some countries, such as Southeast Asian countries and India. It is also very beneficial to the overseas expansion of China enterprises, especially the equity competition, but such a huge amount of foreign exchange can actually be spent very little. In recent years, China's imports have greatly increased. As far as the current account is concerned, I think the import and export may reach a balance in a few years. These foreign currencies will greatly increase the pressure on China's financial market. I think China should speed up the construction of an offshore financial center, and put a considerable part of these foreign currencies into extracorporeal circulation. It can be said that at present, China's ability to digest foreign currency through normal channels has little development potential, and we should find ways to guide these foreign currencies to flow to other countries. In this regard, I think there are many ways for China, such as cooperating with Arab League countries, accelerating its entry into Latin America, establishing more cooperative joint ventures in overseas financial markets, and even directly starting from the financial markets of some countries, such as the stock market. These methods of transferring liquidity to other countries require the cooperation of offshore financial centers. You can't put the flood in your own pool. You should put the flood into someone else's pool. What China has to do now is benign. I think this is extremely undesirable. Especially under the pressure of RMB and domestic market, the huge foreign exchange reserves give us a lot of space and motivation. If the dollar fails to break through China's defense line, it will only flow back and drown the United States itself, and China's current foreign exchange reserves are the best tool to build a dike.