30.09.2013 - Sovereign wealth fund must look long-term
There are good reasons for the size of China's foreign reserves, which since 2000 have ballooned into the world's largest. Although China is the world's largest importer of soybeans and iron ore, the country's industrial processing, carried out mostly for large foreign multinationals by the huge, hard-working and skilful Chinese labor force, still dominates its foreign trade. This fact makes China's trade surplus quite insensitive to rises in the value of the yuan because of the large import content (of raw materials and components) in China's exports...............................................Full Article: Source
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