China has made gradual diversification and restructuring an important policy initiative by holding a larger share of currencies and asset classes other than the dollar and US government debt due to the concerns about the depreciation of the US dollar, and higher interest rates in the medium term.
The government is supporting the increase in the diversity in the group of holders and managers of China’s overall foreign exchange assets, leaving more in the hands of the corporations, the banks and individuals; promotion and encouragement of outward direct investment and increased portfolio outflows, as well as more external lending by corporations and banks, to reduce the accumulation of official reserves; Stabilizing the exchange rate; Increasing its purchase of gold and other commodities. The pace and degree of diversification is limited by the current global trade and financial system, where the dollar still dominates in transactions, asset holdings and official reserves. Before an alternative is developed to change the central role of the dollar as the dominant reserve currency, it is not expected that China will hold less than 50 percent of its official reserves in dollar assets – even in the medium term. When the US dollar reaches a peak depreciation level a new reserve currency will be established and or a new currency will be introduced into the global market.
The section was added by user Davidchatet, who made hundreds of edits to wiki articles related to China over a brief period of time in 2009 and then disappeared from the wiki community. Odds are this guy works for the Chinese state and was tasked with updating various wiki entries related to China given the oddity of his activity.
Is this the official Chinese state position? The section is not sourced, but it makes sense to me given the economic arguments I’ve been making for a while now.