The following is the continuation of the previous chapter.
Towards these amounts of trade is small country leaders, Xi Jinping president talks about the spectacular dream to the future, and China 's imports of goods and services will exceed $ 40 trillion over the next fifteen years.
Speaking of ‘import amount of 40 trillion dollars in 15 years’, on average, the import amount of each year should be over 2.660 trillion dollars.
However, since the import amount of China in 2017 is about 1.840 trillion dollars, in order to reach the numerical targets indicated by the trainee seat, China must greatly increase the import from each country from now on.
However, in order to increase imports from foreign countries, first you must increase your foreign currency (ie foreign exchange reserves).
Certainly, China now has a huge foreign exchange reserve called ‘the world's best’, but there is little possibility that it will increase further in the future.
This is because the trade surplus earned by a country is the source of its foreign exchange reserves, but 60% of China's trade surplus earns from trade with the United States.
And as the trade war with the United States prolongs, the trade surplus earned by China surely decreases, so foreign currency on hand may decrease, but it is unlikely to increase even more than it is now.
On the other hand, in the trade war with the United States, the People's Bank of China must intermittently repeat RMB buying and dollar selling intervention to prevent the RMB sharp fall.
This will further accelerate the decline in foreign currency reserves.
Indeed, since August this year after the start of the trade war, China's foreign exchange reserves have decreased by the month-on-month rate for the third consecutive month and foreign reserves at the end of October decreased by 33.9 billion dollars from the end of the previous month.
Of course, this trend will continue in the future.
In that case, it is impossible for China to increase imports from foreign countries in the future.
Xi Jinping president's prospect of ‘import amount of 40 trillion dollars in 15 years’ is just boaster, it is just 'Buy buying fraud' of Xi Jinping president's own way.
