China’s Cheng Siwei Says Foreign-Currency Reserves Are Too Large

China doesn’t intend to pursue a very large trade surplus and its foreign-currency reserves are too big, said Cheng Siwei, a former senior Chinese legislator.

The nation can control its trade surplus at less than 4 percent of gross domestic product, Cheng said today in a speech at the Brookings Institution in Washington. Foreign-exchange reserves, now $3.2 trillion, should instead total 20 percent of GDP, or about $1.2 trillion, he said.

To contact the reporter on this story: Scott Lanman in Washington at

To contact the editor responsible for this story: Chris Wellisz at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.