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China has huge foreign exchange reserves, why should it attract foreign investment?
Early development lacks capital and technology, and preferential policies are needed to attract foreign investment. Now the effect has been reflected, and the market has enough confidence. Now some policies show that they are beginning to reduce attracting foreign investment. For example, one of the foreign-funded enterprises will no longer enjoy preferential tax rates after the tax reform.

In addition, foreign exchange reserves play a different role in ensuring exchange rate stability.