Keep forex reserves healthy

The speed at which China has built its foreign exchange reserves, the world's largest, is alarming. It should now take all possible measures to boost outward investment and increase imports to slow down, if not stop, excessive capital inflows.

Latest statistics show that China's forex reserves reached $3.82 trillion at the end of 2013, $509.7 billion more than a year earlier.

On one hand, the rise of China as the world's largest trading country in goods contributed significantly to the more than 15 percent increase in its forex reserves. Its imports reached $1.95 trillion and exports $2.21 trillion last year, resulting in a trade surplus of $259.75 billion.