The bite of Corona is not even over yet, and China is again preparing to destroy the world. The only difference is that last time there was a loss of life, and this time, it is preparing to attack ‘goods’, i.e. money. In his recent report, Brad Setser told the Global Agency that China is creating a new threat to the worldwide economy.
It has been said in the report that China is sitting on a pile of 6 lakh crore dollars (about 482 lakh crore rupees), which does not match its book account. Of this, 3 lakh crore dollars (about 241 lakh crore rupees) are entirely hidden. The problem is that the foreign exchange account worth 3 trillion dollars has not been written in the official book of the People’s Bank of China.
Former US Trade and Treasury official has disclosed this in an article on a New York-based news platform. This money has been called shadow reserve. Although China’s reserve has not increased in recent years, the size of this hidden treasure is continuously growing.
Why Are Experts Expressing Concern?
Setsar has said in his report that China can create a big problem for the world due to a lack of transparency. China’s economy is very concentrated relative to the global economy, but any of its work significantly impacts the world. The former trade advisor of the Biden administration says that China is using this surplus money to complete the Belt and Road project.
Threat From an Unbalanced Economy
The former trade advisor says that China is assertive as an economic force but has an unstable economy. In 2009, the Chinese sought new ways to manage their foreign exchange. The value of this hidden treasure can be gauged from the fact that by using it, China can end the debt problem in one stroke. Even at the global level, China is distributing loans to many countries and companies. Overall, any financial problem with him will affect the world first.
It has been reported in many global institutions, including China, that the Central Government has foreign assets of about $6 trillion. Half, i.e., $3 trillion, is an official reserve. But, due to the non-accounting of half the amount, the same can threaten the whole world.
