China's foreign exchange reserves have remained above 3.2 trillion U.S. dollars for more than nine consecutive months, official data showed on Saturday.
The amount totaled 3.2882 trillion U.S. dollars at the end of August, an increase of 31.8 billion U.S. dollars, or 0.98 percent compared to the end of July, the State Administration of Foreign Exchange (SAFE) said.
Due to factors such as macroeconomic data, monetary policies and expectations in major economies, the U.S. dollar index declined while global financial asset prices generally increased in August, experts say.
"China's export structure continues to improve, the proportion of general trade has steadily increased, the competitiveness of 'new trio' and other products has gradually strengthened, the policy dividends of free trade zones have continued to be released, new foreign trade formats such as cross-border e-commerce and offshore trade have continued to emerge, and economic and trade cooperation with countries participating in the Belt and Road Initiative is increasingly deepening," said Wen Bin, the chief economist of the China Minsheng Bank.
China's economic operation is generally stable and has made steady progress, which will help sustain the stability of the country's foreign exchange reserves.
"At the same time, as China's high-level financial opening up steadily expands, foreign institutional investors continue to be optimistic about China's capital market, and the amount of Chinese bonds they hold has reached a record high, which also provides support for the stability of our scale of foreign exchange reserves," Wen said.
China's forex reserves remain above 3.2 trillion US dollars
U.S. President Donald Trump's rollout of sweeping "reciprocal tariffs" may lead to global economic recession and will exacerbate inflation in the country, said a Spanish scholar.
Amid widespread opposition, Trump on Wednesday signed two executive orders, imposing a 10-percent "minimum baseline tariff" on all imported goods and higher rates on certain trading partners.
Felix Valdivieso, a professor at IE Business School, told China Central Television (CCTV) that following the imposition of the tariffs, all consumers in the world will feel the pinch.
"These measures will have global economic impacts and may even lead to a recession. Analysts at Moody's Ratings have pointed out that these tariffs will drive up prices. Price increases will directly affect consumers' personal income and spending power, as well as their purchasing power," Valdivieso said.
Spanish Prime Minister Pedro Sanchez on Thursday announced his government will implement a 14.1 billion euro plan to support the economy in the face of Trump's tariffs.
He called the tariffs a "unilateral attack", saying they will harm the interests of people and businesses in both the EU and the United States itself, an opinion shared by Valdivieso.
"In other words, the U.S. is trying to make money by imposing tariffs, which will also drive up prices of domestic products. According to estimates by American analysts, the price of each car in the U.S. will go up by about 1,000 to 2,000 U.S. dollars after the tariffs are imposed. With car exports to the U.S. blocked, there will be two consequences for Europe. One is that Europe will have to find other markets to sell cars. The other is that it will have to bear the consequences of the decline in car sales in some way, so it has to reduce car production lines and lay off employees," he said.
Trump's tariffs may lead to global recession, exacerbate US inflation: Spanish scholar
