Chinese FM refutes hypothesis of ‘Chinese espionage’; MSS cautions against traps of foreign spy agencies

In response to The Wall Street Journal's recent report stating that some Western countries believe that China is conducting espionage activities on an "unprecedented scale" to undermine rival states and bolster the country's economy, Chinese Foreign Ministry spokesperson Lin Jian said he doesn't know what factual basis this report has, yet noted that the CIA recently posted on social media in Chinese on how to contact it online, in an attempt to lure Chinese personnel to be their informant, and this seriously infringes on China's national interest. 

China strongly protests this, Lin said. China will resolutely crack down on infiltration and sabotage activities by anti-China forces outside China and defend national sovereignty, security and development interest.

The US has never stopped its espionage activities against China, and it has also long been conducting massive surveillance and secret theft against its allies, Lin said, noting that the US on the one hand blatantly carries out spy activities worldwide, yet on the other makes unwarranted accusations of spy threats against other countries, which is a clear misrepresentation of the facts. 

As China's Foreign Ministry condemned US espionage activities around the world, China's Ministry of State Security (MSS) on Monday also unveiled well-designed espionage activities by foreign powers disguised as coincidences, calling on the public to raise their awareness and strictly keep their behavior in line with standards and regulations, and promptly report any activities that may threaten state security.

National security agencies have learned from their work findings that foreign espionage agencies typically recruit personnel with access to national secrets by initiating conversations and consultations, with the aim of persuading them to serve foreign spy agencies, according to the MSS on its official WeChat account.

Overseas intelligence agencies commonly target personnel on core security-related duties under various pretexts, such as asking for directions or advice, the MSS said.

Once responses are received, the foreign intelligence agency staff will ask for the basic personal information and contacts of the individuals related to the confidential materials, biding their time to seize the state secrets.

Foreign spies will also deliberately and purposely pose as attendees in exhibitions, talks, seminars, and other events in order to become acquainted with participants with potential links to national secrets. After getting familiar with them, overseas spies will progressively solicit them to commit stealing of national secrets.

A short video released by the MSS in June narrated the story of a researcher involved in national scientific research who, being struck up by a foreign spy at an exhibition, gradually dropped into the other side's secret-stealing trap, and eventually recognized the truth and voluntarily turned himself in to the national security authorities.

Internet-based stealing of nationally critical data is another frequent approach adopted by foreign intelligence agencies, according to the MSS.

Foreign spies will use fake identities and establish relationships with individuals working in vital sectors of the country via online forums, chat rooms or online games. After successfully getting acquainted on the internet, overseas espionage will continue to communicate with them until the right moment arrives for theft of state secrets, which may even be extended to face-to-face persuasion.

The MSS reminds the public to be vigilant if they are unexpectedly greeted by someone without a clear reason. In particular, when it comes to sensitive topics, individuals are advised to avoid sharing personal information and work details, and to avoid in-depth discussions if overseas strangers ask for contact information or invite them alone in private.

The public is encouraged to safeguard their personal information to avoid revealing their work affiliations, positions, contact details, and other sensitive information online. Personnel in key areas should strictly abide by the discipline of confidentiality and work discipline, resolutely refuse any request that involves national secrets or may jeopardize national security, the MSS reminded.

The MSS also urges the public to promptly report any illegal acts or suspicious activities to the relevant authorities.

Wang Yi meets Russian Deputy FM Rudenko, says China-Russia ties not directed against or interfered by third party

The development of the China-Russia relations does not target any third party or is subject to interference by any third party, said Chinese Foreign Minister Wang Yi during a meeting with Russian Deputy Foreign Minister Andrey Rudenko on Wednesday in Beijing.

Wang, who is also a member of the Political Bureau of the CPC Central Committee, said that the China-Russia comprehensive strategic partnership of coordination is grounded in a natural logic of history and driven by strong internal dynamics, no matter how the international situation changes. 

Wang said under the leadership of the two heads of state, the China-Russia relations have maintained a sound momentum of development, which serves common interests of the people of both nations and allows them to make their respective contributions to safeguarding the purposes and principles of the UN Charter.

He noted that not long ago, the BRICS Summit was successfully held in Russia's Kazan, making positive progress on the BRICS mechanism, promoting unity and self-strengthening of the Global South, and playing an important and constructive role in world peace and stability.

He urged the two sides to make joint efforts to coordinate cooperation in various fields and exchanges at all levels, and implement the consensus reached by the two heads of state.

China has taken over the rotating presidency of the Shanghai Cooperation Organisation (SCO) and stands ready to work closely with Russia to promote new development of the SCO, Wang added.

For his part, Rudenko said that the head-of-state diplomacy has laid a good foundation for the development of bilateral relations.

Russia is ready to work with China to earnestly implement the arrangements made by the two heads of state, maintain close high-level exchanges, strengthen practical cooperation, continue to maintain coordination on international and regional affairs, and push for new development of the Russia-China relations, Rudenko said.

They exchanged views on the Ukraine crisis.

GT survey shows respondents from 12 countries see China as top contributor to Global South’s development, unity

Editor's Note:

The 16th BRICS Summit is being held in Kazan, Russia from Tuesday to Thursday, attracting worldwide attention, with the role of Global South countries being highlighted on the international stage. Recently, the Global Times Institute (GTI) conducted a public opinion survey on topics related to the Global South and BRICS. The survey found that over 80 percent of respondents believe that BRICS countries can represent the Global South in voicing concerns on the international stage. Meanwhile, nearly 90 percent of respondents from Global South countries agree that China's development experience has demonstrative and reference significance for other Global South countries.

BRICS attraction

From August 14 to September 19, the GTI conducted a public opinion survey on topics related to Global South countries and BRICS in 11 developing countries, including China, South Africa, Brazil, India, Saudi Arabia, Pakistan, Kenya, Egypt, Peru, Malaysia, and Thailand, as well as Russia. The survey targeted respondents aged 18 to 70 and utilized various methods of data collection, including online panel, CATI, and face-to-face interviews. A total of 10,334 valid questionnaires were collected.

The survey showed that over 80 percent of respondents in 12 countries believe that BRICS countries can represent the Global South in international discourse. The recognition rates are highest among the three BRICS member countries: China (95 percent), India (93 percent), and South Africa (91 percent). Thailand, Malaysia, Egypt, Kenya, and Brazil also have recognition rates exceeding 80 percent.

The BRICS cooperation mechanism is viewed by many observers as an important platform for emerging market countries and developing nations to strengthen solidarity and cooperation, and to safeguard common interests. In January, BRICS countries expanded, with dozens of other countries having applied or expressed interest in joining BRICS, according to public reports.

Wang Youming, a research fellow at the China Institute of International Studies, told the Global Times that at the beginning of this century, emerging economies represented by BRICS rose to prominence, leading to a shift in the international power structure. However, the existing institutional power framework has not changed accordingly; the over-representation of Western countries in international affairs and the under-representation of Global South countries remain unchanged.

"The Global South seeks to alter the imbalance of international power, and the emergence of BRICS aligns perfectly with this demand. The Global South hopes to ride the 'BRICS Express' to explore a new mechanism for dialogue that corresponds with their scale," Wang said.

Rafael Gontijo, a senior advisor of the Brazilian government, told the Global Times that he believes BRICS has a crucial role in promoting a multipolar order. "The expansion in the number of members demonstrates that the group's mission is being successfully fulfilled," he noted.

As for the five non-BRICS countries in the survey, more than half of the respondents in each country supported their nation's application to join the BRICS mechanism. Among them, Kenya had the highest support rate at 83 percent, while Pakistan's support rate was nearly 80 percent.

Meanwhile, in the survey of the seven BRICS member states, the public generally held an open attitude toward further expansion of BRICS, with more than half of the respondents in each country believing that expansion is necessary. Among them, Chinese respondents had the highest approval rate for expansion at 86 percent, followed by South Africa at 82 percent.

According to respondents from 12 countries, the main reason for the popularity of the BRICS mechanism is that it can promote economic development, with nearly 60 percent of respondents agreeing with this reason.

In recent years, BRICS countries have been exploring and developing a settlement system that is not controlled by the US, using their own currencies or neutral currencies for transactions.

The poll shows that nearly 70 percent of respondents in the 12 countries believe that BRICS countries need to establish a new settlement system for international trade settlements and payments among themselves. Among them, the agreement rate in China is 84 percent, while India's agreement rate is close to 80 percent. The agreement rates in Kenya, Egypt, Pakistan, Malaysia, and South Africa are all above 70 percent.

Xu Feibiao, director of the Center for BRICS and G20 Studies at the China Institutes of Contemporary International Relations, told the Global Times that the BRICS mechanism provides a multilateral platform for Global South countries to voice their opinions and express their demands, fulfilling their aspirations for a fair and just international environment.

"On specific issues, relevant countries can propose their own solutions through the BRICS mechanism. In terms of development, BRICS countries have put forward multiple 'BRICS solutions' focusing on the digital economy, trade, investment, and infrastructure construction, achieving fruitful results in promoting new industrial revolution partnerships, payment systems, the New Development Bank, and emergency reserve arrangements," Xu introduced.

A fairer global order
According to the survey result, nearly 90 percent of respondents believe that the rise in international status of the Global South can or may lead to a more just and reasonable international order.

Regarding the specific role of the Global South in the international order, mainstream public opinion points to promoting an equal and regulated international order, with nearly 60 percent of respondents from 12 countries holding this view.

Xu told the Global Times, "The Global South countries have three major advantages: First, they have scale advantages in terms of the number of countries, population, and economy; second, they possess resource advantages; and third, they have growth prospects, representing the future of the global economy."

The polls revealed that the potential of Global South countries is highly recognized. Specifically, the potential of the Global South to drive global economic growth is the most acknowledged, with 75 percent of respondents believing it has "great potential" or "potential."

The Global South is also recognized for its potential to promote cultural exchanges, develop natural resources, maintain global peace and security, and engage in energy cooperation, with approval rates no less than 70 percent.

In recent years, Western discourse has frequently mentioned the Global South. When asked why the West has suddenly taken an interest in the Global South, a South African Gen Zer interviewee believed that "Western countries want to obtain the natural resources of Global South countries." A Kenyan post-80s interviewee shared a similar view. Additionally, a 70-year-old interviewee from Malaysia stated that this is because the Global South represents a huge market.

Valuable insights
Nearly 90 percent of respondents from Global South countries agree that China's experiences offer valuable insights for other Global South countries.

The BRICS development model provides Global South nations with opportunities to choose development paths suited to their own conditions, offering an alternative to the notion that globalization equates to Americanization or modernization equals Westernization.

The survey highlighted eight countries, including China, Russia, India, Saudi Arabia, South Africa, Brazil, Turkey, and Indonesia. When asked which countries could most effectively empower the Global South, China ranked first, by a significant margin. Similarly, when asked which countries could unite the Global South the most, China again led by a notable margin.

Xu told the Global Times, "A recognized leader among Global South countries must possess several qualities: Political independence from the West, respect for all countries, the willingness to speak for the Global South in international forums, and a commitment to providing public goods and pursuing shared development. Moreover, this leader must have strong comprehensive capabilities in politics, the economy, and governance, and be able to offer economic opportunities, investments, and resources."

In June, at the 70th anniversary of the Five Principles of Peaceful Coexistence, China unveiled the "Beijing Declaration of the Conference Marking the 70th Anniversary of the Five Principles of Peaceful Coexistence," which announced several initiatives to support Global South cooperation. These include establishing a Global South Research Center, providing 1,000 "Five Principles of Peaceful Coexistence" scholarships, offering 100,000 training opportunities, and launching a Global South Youth Leaders Program over the next five years.

The survey showed that over half of the respondents from countries other than China expressed a willingness to participate in training at the Global South Research Center, with about 20 percent indicating they would consider it.

Additionally, nearly 90 percent of respondents from Global South countries recognize that China's development experience serves as a model and offers valuable lessons for other Global South nations. Among them, Kenya had the highest recognition rate at 95 percent, followed by South Africa and India at 91 percent. In Egypt and Malaysia, the recognition rate was close to 90 percent, while the support rates in other surveyed countries were also near or above 80 percent.

"Global South countries are looking to learn from China's economic development model, and many are also keen to understand China's governance practices. As a large multi-ethnic country, China's ability to achieve harmony and stability is of great interest to others," Xu further noted.

A report from the International Finance Forum revealed that China's contribution to global economic growth in 2023 was 32 percent, making it the world's largest growth engine. When asked if China's rapid development presents more opportunities for Global South countries, nearly 90 percent of respondents expressed a positive view, with 42 percent seeing "many opportunities" and 45 percent seeing "some opportunities."

Kenya had the highest percentage of positive responses at 96 percent, while the figures in South Africa, India, Egypt, and Malaysia were also around 90 percent, and in Thailand, Pakistan, Brazil, and Peru, the figure exceeded 80 percent.

"The 'Chinese Path to Modernization' has become an inspiration for Global South countries. They admire that China has avoided the colonial expansion path of the West and is working to modernize while addressing poverty for over a billion people. They are also curious about how China has achieved such high-tech advancements despite Western containment," Wang said.

"Many Global South countries aspire to join the BRICS family to learn from China's experiences, attract Chinese investments, adopt Chinese technology and standards, and expand into BRICS markets to ultimately reduce their dependency on the West," he said.

Xi urges more efforts to achieve marine sci-tech breakthroughs

Chinese President Xi Jinping has urged more efforts to achieve marine sci-tech breakthroughs in a reply letter to faculty and students of the Ocean University of China.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, congratulated the university's faculty, students and alumni on its centenary.

15th Media Forum China-Germany held in Berlin

The 15th Media Forum China-Germany hosted by the Global Times was held in Berlin, Germany, from Monday to Wednesday.

The event brought together key figures from leading media outlets, renowned journalists, scholars, and youth representatives from both China and Germany for in-depth discussions on issues concerning media in both countries.

The topics discussed included jointly facing global security issues, jointly tackling "deglobalization" and "decoupling," the development of the electric vehicle industry, climate change and global governance, and artificial intelligence.

The Media Forum China-Germany aims to promote mutual understanding, tolerance and cooperation between media outlets and the people of both countries, providing a valuable platform for media exchanges and collaboration.

Fan Zhengwei, secretary of the Party committee, president, and editor-in-chief of the Global Times, noted in his opening remarks that this year marks the 10th anniversary of the establishment of the comprehensive strategic partnership between China and Germany. Since its first event in Shanghai in 2010, the Media Forum China-Germany has become a vivid symbol of the steady development of China-Germany relations. To further enhance cultural exchanges and foster mutual understanding between the peoples of the two countries, media in China and Germany should meet each other halfway to contribute to a more objective and comprehensive understanding of each other, Fan noted.

During the exchange sessions, participants from both sides engaged in in-depth discussions on issues of mutual concern, freely expressing their views and engaging in open exchanges. They shared vivid and emotional stories, while also engaging in candid and heated debates, deepening their mutual understanding.

During the discussions on global security issues, the German representatives expressed concerns about regional instability and security challenges, expressing hopes that China and Germany could work together to play a larger role.

On issues such as the EU's imposition of tariffs on Chinese electric vehicles, both sides engaged in frank and positive exchanges. Some German participants noted that the automotive industry holds special significance for Germany, and Germany should approach competition with a positive mindset, viewing the rapid growth and progress of China's auto industry as an incentive for Germany's automotive sector, giving play to complementary advantages and achieving win-win cooperation with Chinese companies.

The event also received support from the United Nations. Melissa Fleming, UN Under-Secretary-General for Global Communications, and Siddharth Chatterjee, UN Resident Coordinator in China, addressed the participants through video messages.

East Asia Summit calls for cooperation, mutual trust defying US noises: expert

The 19th East Asia Summit (EAS), one of a series of major ASEAN Summit-related meetings, was held in the Lao capital Vientiane on Friday, with the focus on strengthening cooperation under the EAS framework to foster mutual understanding and mutual trust.

While China and most regional countries are calling for tranquility, common prosperity, openness and interconnectivity, US politicians have not stopped their threadbare tactic of sowing discord between China and the regional countries by hyping up the South China Sea issue, with an outdated confrontational mentality against China. 

Chinese experts said the signal of unity and cooperation sent by China and ASEAN countries at a time of sluggish global economic growth and challenges to peace and security could inject more momentum and certainty into the regional and even global economy. 

Common aspiration 

Addressing the EAS on Friday, Chinese Premier Li Qiang called on all parties to uphold peace and tranquility, pursue mutual benefit and win-win results, and firmly promote opening up and cooperation. 

China is willing to work with all parties to further promote the Five Principles of Peaceful Coexistence and focus on building a community with a shared future for mankind, Li said. 

He also called for the speeding up of the building of the Free Trade Area of the Asia-Pacific, advancing regional economic integration, and avoiding turning economic and trade issues into political and security issues.

The 19th EAS was attended by leaders and representatives from ASEAN countries, and China, Japan, South Korea, India, Australia, New Zealand, Russia and the US. 

Addressing the summit, Lao Prime Minister Sonexay Siphandone said the EAS is inseparable from the ASEAN-centered regional architecture, adding that EAS cooperation has made considerable progress and broadened significantly over the past 19 years. 

Representing the host country, the Lao Prime Minister stressed the importance of strengthening cooperation under the EAS framework to foster mutual understanding, mutual trust and mutual confidence, which are key elements to the shared objectives of peace, stability and sustainable development.

He said that the ASEAN Summit and related summits have adopted and noted more than 90 outcome documents, emphasizing the importance of ASEAN collective efforts to ensure the continuity of ASEAN Community building process.

According to Zhu Feng, director of the Institute of International Studies at Nanjing University, the EAS and other ASEAN-related summits convened at a time when many parts of the world are in turmoil, with the US' future Asia policy being filled with uncertainty, which gives the series of meetings great significance.

The overall tone of the ASEAN meetings is positive, with both China and the vast majority of Southeast Asian countries stressing the need to strengthen cooperation and connectivity, said Zhu, noting that an open region has always been an important foundation for China and ASEAN countries to maintain regional peace and stability.

Song Qingrun, a senior research fellow from the School of Asian Studies at Beijing Foreign Studies University, told the Global Times that relevant remarks made during the summit fully reflect the basic consensus of the majority of Asia-Pacific countries in hoping to expand cooperation and jointly promote peace and development.

"The Asia-Pacific region is an important engine for global economic growth. If regional countries can further develop good relations and expand cooperation, it will inject more momentum and certainty into the regional and global economy," said Song. 

At a time of sluggish global economic growth and peace and security being challenged, there is a great need for signals of unity and cooperation, which will boost confidence and drive more sustained and substantive cooperation, Song noted. 

In his opening remarks addressing the 27th China-ASEAN Summit on Thursday, Premier Li announced that negotiations on the Version 3.0 China-ASEAN Free Trade Area (FTA) have achieved a substantial conclusion. 

In remarks addressing the 27th ASEAN Plus Three (APT) Summit on the same day, Premier Li said China is ready to work with ASEAN, Japan, South Korea and other Asian countries to uphold the Asian consciousness, carry forward the Oriental wisdom, and steadily move forward toward building an Asia of peace and tranquility, common prosperity, openness and interconnectivity. 

Unpopular outsider

Despite the calls and efforts for making enduring peace and cooperation in the Asia-Pacific, in sharp contrast, US officials continuously made jarring remarks targeting China, which appeared at odds with the general atmosphere of the ASEAN events.

During his meeting with leaders of ASEAN member countries on Friday, US Secretary of State Antony Blinken hyped up hotspot issues, saying that the US is concerned about "China's increasingly dangerous and unlawful actions" in South China Sea, per an AP report. 

In response, Chinese Foreign Ministry spokesperson Mao Ning said on Thursday that China and parties to the South China Sea have every capability and wisdom to properly address disputes through dialogue and consultation, and jointly get the situation at sea under control.

"The US and individual countries outside the region are upgrading deployment of weapons and military activities in the South China Sea to incite confrontation and create tensions. They are the biggest source of instability in the South China Sea," Mao said.

Blinken also noted on Friday that the US "will continue to support freedom of navigation and freedom of overflight in the Indo-Pacific," and hopes to work with ASEAN leaders to "protect stability across the Taiwan Straits."

Blinken's remarks suggest that the Biden administration is looking to leave a legacy in terms of Asia-Pacific policy through further containment and suppression of China, but the ASEAN Summits and its related meetings reflect the stark fact that the narrow-minded US hegemony is unpopular in the Asia Pacific and its related policy will not receive substantial support in the region, experts said.

The vast majority of regional countries are fully aware that the bloc confrontation that the US is inciting in the region poses a great threat to Asia-Pacific integration and prosperity, and thus they are unwilling to become victims of the great power competition, Zhu said. 

The US was also advertising its promises during the slew of ASEAN occasions. In a White House statement released after the US-ASEAN Summit, the US government listed so-called major accomplishments under the comprehensive strategic partnership with ASEAN, saying that Washington has made "significant progress" in fulfilling its promises. 

Despite US efforts to woo ASEAN, the bloc's members are quite rational about their proper position in the China-US competition, which is in line with their own interests, Zhu said, "More importantly, a peaceful rising China is an inseparable cooperative partner of ASEAN's development."

China has been ASEAN's top trading partner for 15 consecutive years, and ASEAN has been China's largest trading partner for four years in a row. Two-way trade increased by 10.5 percent year-on-year in the first half of 2024, official data shows. 

The spillover of the Palestinian-Israeli conflict and the ongoing Ukraine crisis have brought great harm to world economic growth and people's livelihoods, which Asian countries are keenly wary of, Song said. 

The close economic and trade cooperation between ASEAN and China has become an important driving force for regional economic growth, Song said, noting that amid the world's turmoil, maintaining cooperation and peaceful development serves the greatest common interests and aspirations of all parties. 

Christmas sales boom

A merchant in Yiwu, East China's Zhejiang Province, showcases popular styles of Christmas hats in his booth on October 10, 2024. Festival goods are selling well in the Yiwu International Trade Market, which has more than 800 vendors offering Christmas merchandise. These vendors export Christmas items to more than 100 countries and regions each year. Photo: VCG

Ongoing rise in foreign reserves a solid signal of China’s economic strength

China's foreign exchange reserves totaled $3.316 trillion at the end of September, up 0.86 percent from the previous month, according to data from the State Administration of Foreign Exchange. Notably, this figure exceeded the estimate of $3.304 trillion, as projected by a Wall Street Journal poll of economists.

The September rise was the third consecutive month of month-on-month growth, with reserves remaining stable above $3.2 trillion for 10 straight months, according to media reports. Additionally, China's foreign exchange reserves have remained the largest in the world for 19 consecutive years.

The growth in China's foreign exchange reserves can be partially attributed to short-term factors such as fluctuations in exchange rates and asset prices. However, the sustained high levels and growth rates that exceeded market expectations strongly indicate the stable development of the Chinese economy. 

This sustained high level of foreign exchange reserves, a key indicator of a country's economic strength and resilience, not only reflects China's robust economic capabilities and its effectiveness in adapting policies to changing conditions, but also suggests that the Chinese economy is well-positioned for continued stable growth.

In the complex and ever-evolving international economic landscape, along with volatile financial markets, China's strong position in its foreign exchange reserves is bolstered by its strong manufacturing capabilities, an increasingly optimized foreign trade structure and attractive conditions for foreign investment. These elements work together to enhance the overall balance of international payments, providing a solid foundation for the country's foreign exchange reserves. 

In turn, China's continued high level of foreign reserves is particularly beneficial for the stability of the yuan's exchange rate and helps China tackle impacts from financial crises in international markets. It facilitates the further optimization of China's foreign trade structure while maintaining sustained growth. It supports the stable development of the Chinese economy on a relatively solid exchange rate foundation, which could attract more foreign investment into the Chinese market.

First, sufficient foreign exchange reserves provide China with a crucial buffer against the uncertainties and fluctuations of the international financial market. In times of external economic downturns, these reserves can be utilized to stabilize the yuan's exchange rate, thereby ensuring the overall stability of the financial market. 

The interest rate cut by the US Federal Reserve in September has affected international financial markets, yet significant uncertainty remains regarding the Fed's future policies and the US economic outlook. In this context, China's foreign exchange reserves play a vital role in maintaining exchange rate stability, helping the country withstand external financial risks and avert potential financial crises.

Second, foreign exchange reserves are essential for covering import costs in international trade, supporting the smooth operation of China's foreign trade. Global trade is experiencing significant changes influenced by the trends of the green and digital transitions. Additionally, geopolitical factors and increasing protectionism are contributing to uncertainties in the global trade landscape.

As China's foreign trade structure is steadily improving, innovative forms of foreign trade, including cross-border e-commerce, are continually gaining pace. A substantial level of foreign exchange reserves enhances China's ability to improve the structure of its foreign trade and mitigate the effects of rising protectionism, "decoupling" and geopolitical disruptions.

Third, adequate foreign exchange reserves can enhance foreign investors' confidence in the Chinese market and economy, leading to increased foreign capital inflows. 

A stable exchange rate environment is an important consideration for foreign-invested enterprises, as it reduces exchange rate risk. Having a higher level of foreign exchange reserves provides China with greater flexibility in its economic policy and exchange rate adjustments, enabling it to better respond to economic fluctuations and attract foreign investment.