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Chinese leader wants foreign exchange reserves to bolster energy reserves

Chinese leader wants foreign exchange reserves to bolster energy reserves

China should dip into its immense foreign exchange reserves to bolster the country's strategic energy reserves, Vice Premier Zeng Peiyan was quoted as saying.
In a report delivered to the Standing Committee of the National People's Congress, the country's legislature, Zeng also said China needed to speed up the hunt for oil and natural gas resources, including in offshore sites.
"We should establish a coal resources reserve system and take advantage of the fact we have quite large foreign exchange reserves to enhance our national strategic energy reserves, the official Xinhua News Agency quoted Zeng as saying late Tuesday.
China's foreign-exchange reserves are the world's largest at more than $1 trillion, and there has been much speculation recently over how Beijing should use its unprecedented wealth, including shifting its foreign reserve holdings away from U.S. Treasuries.
The Xinhua report gave no further details on how the foreign exchange reserves should be used.
It quoted Zeng as saying China needed more mid- and long-term planning for the coal industry, including consolidation of the mining sector to "build a group of medium and large coal supply bases."
Zeng also said, without elaborating, that China will strengthen exploration of other major resources, such as natural gas and uranium.


Updated : 2020-12-04 10:51 GMT+08:00