China’s Hidden Currency Reserves Pose Global Economic Risk
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Brad Setser, a former US Trade and Treasury official, warns that China possesses a total wealth of $6 trillion, with half of it remaining undisclosed. This concealment of funds presents a new kind of danger to the global economy, as the lack of transparency in China’s financial system affects the entire world. Setser explains that despite official reserves remaining constant in recent years, the undisclosed reserves have likely expanded in correlation with the surplus of Chinese exports. [/s2If]
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