Thanks to the hard work of businessmen and workers in China, enterprises in the Yangtze River Delta and the Pearl River Delta have maintained an increasingly prosperous export scale and a large number of employed people in China for decades.

China's long-term export growth is strong, and the goods exported abroad are settled in foreign currency (mainly in US dollars), which causes manufacturers to change their goods into US dollars.

When manufacturers return to China, they will definitely buy raw materials again to organize production, pay workers' wages, or expand reproduction. However, the US dollar is not in circulation in China, so manufacturers go to banks and exchange their US dollars for RMB.

The "manufacturers looking for banks" here, more precisely, is that the state requires manufacturers to "sell" the foreign exchange they receive to countries, which is called compulsory settlement of foreign exchange.

Second, overseas investment in China.

With the development of China getting better and better, foreign investors want to invest in China, so the foreign currency in the hands of foreign investors will also be converted into RMB through the People's Bank of China, and RMB will also be converted into foreign exchange reserves.

These two points are actually the "double surplus of China's current account (foreign trade) and capital account (foreign investment)" that we always see in the media-the most important factor for the sustained and high growth of foreign exchange reserves.