China's foreign exchange reserves of hundreds of billions of dollars exist in the form of US Treasury bonds and bonds (about 60%), which makes China's foreign exchange reserves illiquid and threatened by Sino-US relations and the size of the US Treasury bond market. At present, in order to stimulate the domestic economy, the United States prints a large number of US dollar bills, which may lead to the depreciation of the US dollar. Once the dollar depreciates, China's foreign exchange reserves will shrink. Historically, China's foreign exchange reserves seriously depreciated in the process of the dollar crash after 2000. Some people think that the book loss of China's foreign exchange reserves in 2003 was about $20 billion, and in the first half of 2004 it was about $40 billion.

Therefore, China's foreign exchange reserves are not very safe.