4 ms·

No. They bought it because the excess capital produced by artificially low exchange rate used to stimulate domestic production and exports is too big to be park

by fuoqi 4y ago

No. They bought it because the excess capital produced by artificially low exchange rate used to stimulate domestic production and exports is too big to be parked anywhere else.

ChatGTP 4y ago
They didn't think it would lose money though, right?
- fuoqi 4y ago
  With negative real interest rates they DO lose purchasing power and I think they thought about such risk. But making China a production powerhouse and technology transfer associated with it was a much more important goal.