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China has far more cash reserves than it needs compared to short term debt (one standard measure). In fact, China's total reserves to GDP ratio are approximately 50%. Cash reserves of 1% would be considered generous. 2 International Monetary Fund economists (Aizenmann and Lee) concluded that China is building its reserves "as a precaution against a crisis".
China has purchased a very, very, very large amount of strategic resources, fuel, wood, metals, grains, and they pay for it via their exports to western countries.