Foreign exchange balance refers to the total foreign exchange reserves held by a country or region, including cash, bank deposits and other foreign exchange assets. In international trade and economic exchanges, foreign exchange balance is a very important indicator, because it reflects the economic strength, international competitiveness and credit of a country or region. For China, the foreign exchange balance has always been a concern, because China is one of the largest exporters in the world, so it needs enough foreign exchange reserves to support its foreign trade and investment activities.

The change of China's foreign exchange balance is influenced by many factors, the most important of which are international trade and foreign direct investment. When China exports goods and services and absorbs foreign direct investment, it will increase its foreign exchange reserves. In addition, the China government can adjust the foreign exchange balance by intervening in the foreign exchange market. In recent years, the change of China's foreign exchange balance has also been influenced by domestic economic growth and financial market fluctuations.

The foreign exchange balance has multiple effects on China's economy. First, it can support China's competitiveness in the international market, especially in international payment. It can also protect China from market shocks and financial risks. In addition, foreign exchange balance can provide China with sufficient foreign exchange reserves to cope with domestic economic risks and fiscal austerity. China government can also keep the exchange rate stable through foreign exchange reserves to ensure the interests of domestic enterprises and consumers. Therefore, the foreign exchange balance is very important to the stability and development of China's economy.