BEIJING, April 23 (Xinhua) — China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday. The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high. China’s foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March. Tang’s remarks echoed the stance of Zhou Xiaochuan, governor of China’s central bank, who said on Monday that China’s foreign exchange reserves “exceed our reasonable requirement” and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.

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The Chinese media are not the only outlets reporting that the dollar holdings of the Chinese could be diminished. In fact, some media outlets are noting that China’s economy appears to be ascending in relation to the United States. To quote directly from MarketWatch.com:

For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China. And it’s a lot closer than you may think. According to the latest IMF official forecasts published two weeks ago, China’s economy will surpass that of America in real terms in 2016 — just five years from now.

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This news could be very important for the international business community and for those conducting business in China. At the same time, this news could prove important for the business community in the economies comprising the Association of Southeast Asian Nations (ASEAN). The ultimate effects of this news will likely play out over the coming months.

In the context of United States Immigration these developments could prove to be a boon to prospective immigrant investors seeking an EB-5 visa to take up Lawful Permanent Residence in the United States because the dollar could prove in coming months to show weakness. As a result, currency utilized by prospective immigrants could strengthen in relation to the United States dollar and thereby facilitate a less costly investment in real terms.

How this news impacts business and politics in the United States of America, the Kingdom of Thailand, and Greater Asia will likely be the topic of further postings on this blog in the future.

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