原文标题：Here’s what China can buy with $3-trn forex
At the end of March 2011, China’s foreign exchange reserves scaled a new peak. They shot past $3 trillion (about Rs 135 trillion!).
And despite the fact that China showed a trade deficit in the first quarter of the fiscal year 2011, the Chinese central bank figures reveal that its forex reserves touched the gargantuan figure of $3.0447 trillion.
Financial magazine The Economist recently ran an article that spoke of what the Asian giant could buy with the mountain of forex reserves it has at its disposal. On the calculations it made, the magazine said: ‘These frivolous calculations illustrate the vast scale of China’s reserves but also the great difficulty it faces in diversifying them.’
So, what can China, which keeps most of its foreign reserves in the United States government securities, buy with its $3 trillion forex reserves?
With $3 trillion foreign reserves, China can gift one Tata Nano each to every Indian (yes, each of the 1.23 billion Indians) and still have change for year’s worth of average petrol consumption.
With just one generous act, it can not only put all Indian on the fast track, it can also push traffic congestion beyond bearable.
China could buy all of the outstanding sovereign debt of Spain, Ireland, Portugal and Greece, solving the euro area’s debt crisis in a trice, says The Economist.
And it would still have almost half of its reserves left over.
Instead of buying up debt, China can buy equity. Meaning, instead of putting most of its reserves into US government securities, China could instead go on a shopping spree in the corporate world.
It can gobble up Apple, Microsoft, IBM and Google for less than $1 trillion. By buying all the major corporations, it can dictate terms and prices to the world. Hmmm…
It can go the way sheikhs and oligarchs are going and acquire sport clubs.
According to Forbes magazine, the 50 most valuable sports franchises around the world are worth around $50.4 billion in 2010, less than 2 per cent of China’s foreign exchange reserves.
Rich love buying property, and nobody is richer than China — at least in terms of the foreign exchange reserves it sits on. . so it can acquire hot property.
China can buy all of Manhattan, calculated The Economist. The island’s taxable real estate is worth only $287 billion, according to the New York City government.
The properties of Washington, DC, are valued at just $232 billion. China can go from being America’s banker to its landlord, The Economist said.
With over Rs 1,35,00,000 crore at its disposal, you can very well figure out how many 2-bedroom apartments it could buy in, say, a city like Mumbai.
Three trillion dollars would buy about 88 per cent of 2011’s global oil supply, says The Economist.
China can buy up all the oil, raise the prices and enjoy the profits.
It would take only $1.87 trillion (at 2009 prices) to buy all of the farmland (and farm buildings) in the United States.
If China acquires all the agriculture farms and farm buildings, it can easily control the world’s food prices, as America is the biggest exporter of food products, according to The Economist.
China could theoretically buy America’s entire Department of Defence, which has assets worth only $1.9 trillion, according to its 2010 balance sheet, says The Economist.
Most of this amount would actually be able to buy all the land, buildings and investments made by the US Department of Defence. The entire armament — guns, tanks and other military apapratus — is valued at $413.7 billion, says The Economist.
The calculations might seem frivolous but they amply demonstrate the might of the Chinese nation.
With a fraction of that amount, China can buy all the top Indian companies. It can buy over more than 7,800 Airbus A380s, the largest passenger aircraft on earth.
That kind of money has the potential of taking care of almost all of India’s infrastructural problems — power, roads, rail and air connectivity, hospitals, and more…
So what else do you think could $3 trillion buy? Tell us.
This Journalist does not know any Economics
by Dipak Bose (View MyPage) on Aug 01, 2011 11:42 AM
“With $3 trillion foreign reserves, China can gift one Tata Nano each to every Indian (yes, each of the 1.23 billion Indians) and still have change for year’s worth of average petrol consumption.”
This is rubbish man. These foreign exchanges are not China’s money; most of these ( except that comes from China’s balance of payments surplus) are forenger’s money parked in China. China has no right to do anything with these, as China has the obligation to pay these back when the foreigners want these back.
These are not China’s money
by Dipak Bose (View MyPage) on Aug 01, 2011 11:39 AM
Foreign exchange reserve of a country means a number of things: foreigners money deposited in the country’s banks; foreigners money used in the construction of offices, factories, etc; surplus of the balance of payments. This third element is the only money belongs to the country; others are not assets but liabilities.
Most people do not understand that foreigners investments and money are not the assets of China but liability of China.
lets buy the bank which keeps all the reserves
by Surinder Sood (View MyPage) on May 18, 2011 02:16 PM | Hide replies
Let us be smart indians and buy the bank which has all the forex resrves of china….
Can’t buy Indian Politician
by Shobith Sivadas (View MyPage) on May 08, 2011 11:53 PM | Hide replies
Indian Polititians are too expensive…It takes more money to Bribe them….
by Suprasanna Bhat (View MyPage) on May 08, 2011 10:12 PM
China is just a fox with a dragon’s skin…its not so difficult to tackle them.
Here’s what China can buy with $3 trn forex
by adalrich kauffman (View MyPage) on May 08, 2011 12:44 PM | Hide replies
India’s Politicians Can ACtually Buy Out China 3 Times Over With The Kind Of Money They Have Parked In Foeign Banks. All Agree??…
Re: Here’s what China can buy with $3 trn forex
by piri (View MyPage) on May 08, 2011 04:06 PM
India’s corrupt are reported to have about Rs. 25 lakh crores in tax havens abroad (5.5 trillion USD). This is according to the BJP. But other reports say that it is about 2 trillion USD).
China’s ownership of US govt. bonds alone is about 3 trillion USD ! Besides, they have a gigantic forex reserve. And the chinese economy’s main market, despite the well known dominance it enjoys in world markets, is its domestic one (more than 70 % of chinese goods by value are sold within the country).
And despite its size (4 times that of India), the chinese economy is still growing at about 9.5 % while the relatively tiny Indian economy is yet to reach 8 % !
India is still small fry before the mighty chinese engine ! And, the gap is only widening further !
What China can buy !!!!!
by girish bayes (View MyPage) on May 07, 2011 03:22 PM
China could many almost all of the listed things in the article, but, the amount would fall short if they plan to buy just a dozen of our politicians and highranking officials !
To do this, they’d need a whale lot more…….
Strip these politicians/officials off their illegally amassed wealth and we won’t even be able to count it till the last rupee ! Imagine what this money (if recovered) could do for India ?
Food for thought !
chinas reserves $3 trilliion
by Girish Wadhwa (View MyPage) on May 07, 2011 03:17 PM
Indian Politicians already have reserves of $3 trillion or more. And they are on buying spree..
Buying out India itself.
by varghese (View MyPage) on May 07, 2011 03:07 PM
The article is nothing but an big joke on the readers of Rediff…
I have never heard of any nation on an buying spree just because their Forex reserves are high..or because they are sitting on a reserve..this is the height of speculation even worse than gambling..
hats of to the writer to even have an wish list such as this…
poverty in chinese rural areas
by bhrugesh chauhan (View MyPage) on May 07, 2011 02:57 PM
would be better if the chinese govt would try to eradicate poverty in rural areas. economist should also try to understand how the populace feels about massive foreign reserves
what china can buy more than $3 trillion in foreign res
by jay ganatra (View MyPage) on May 07, 2011 02:53 PM
I totally agree with the details given in above presentation regarding what China can buy with its reserve but 1 thing that China cant buy with its reserve is WORLD PEACE……What is the use of such Money ?
China can buy nothing
by Umesh Agarwal (View MyPage) on May 07, 2011 02:33 PM | Hide replies
China’s forex reserve is in USD, which is US Government bonds/securities. If US government fails or other governments does not accept USD, then China’s reserve is just piece of papers and nothing else….. just think… US is on the way of bankruptcy… if nobody in the world accept USD then what…….. It will be better for Chinese government to ask US government to convert its forex reserve into GOLD, which is universally acceptable…then see the results….
Re: China can buy nothing
by seshasayee kandadai (View MyPage) on May 07, 2011 02:52 PM
One hundred percent right. If China dumps the dollar in the market it will become just a piece of paper which they will never do.
by Pawan (View MyPage) on May 05, 2011 02:36 PM | Hide replies
Things about China are blown out of proportion
Just like their Duplicate / Fake goods..which deosnot last long.
by Pawan (View MyPage) on May 05, 2011 02:33 PM | Hide replies
India is not a fake democracy ….
West is trying to learn values from Indian Secularism, national integrations , cultural diversity & unity, Democracy.
poor Chinese cannot chew it….I can only feel sorry
Money cannot buy values
India 2050 ahead of China
by Pawan (View MyPage) on May 05, 2011 02:13 PM | Hide replies
By 2050 India will repalce in terms of GDP,
with China struggling with ageing population,
Human Right Violation, People Rebellion.
Re: India 2050 ahead of China
by toga (View MyPage) on May 05, 2011 02:14 PM
By 2010 people would forget shanghai.
I remember that from like what, 2005?
by Pawan (View MyPage) on May 05, 2011 02:02 PM | Hide replies
Inspite of wealth accumalated..China deosnot desire respect from the world due to its arrogant attitude.
Apart from Rogue states like Begger North korea, Terroristan, Iran china has not respected ally.
Wheras India is largest democratic country with values of freedom, press & secularism.
by Pawan (View MyPage) on May 05, 2011 01:47 PM | Hide replies
Even begger of mumbai are better in terms of freedom than Sanghai Richies
who deosnot have free speech & movement..
by Pawan (View MyPage) on May 05, 2011 01:44 PM | Hide replies
Poor chinese do not have authority to free speech in country that’s some them bark in here in the internet..
One can only feel sorry for them..Money cannot buy everything. Sees some them are fustrated
Re: Poor Chinese
by CYBERIA CYBERIA (View MyPage) on May 05, 2011 01:57 PM
with the new regulations coming through soon indian internet will also be like that
Why are majority still living in misery
by Ramadas (View MyPage) on May 05, 2011 01:34 PM | Hide replies
If they have so much money, why aren’t they using it for the upliftment of their entire population. The majority of their people are still living in slums. Why?
Re: Why are majority still living in misery
by Sphurthy Ravindra (View MyPage) on May 05, 2011 01:43 PM
China cannot buy the hearts of its people. Money cannot buy everything – not even MasterCard
by Pawan (View MyPage) on May 05, 2011 01:20 PM | Hide replies
Even if they cross 3 trillon dollar, they cannot match the technology quality of US, German or Japan.
They cannot match values of free of society in democratic countries like India.
With all those wealth Chinese citizen are still most backwards in terms of freedom of speech & activity……….
Re: Poor Guys?
by Partha Das (View MyPage) on May 05, 2011 01:29 PM
You dont make $3 trillion with a free,just & open society.They are inherently contradictory.
You first make the money and then decide what kind of society you want. Its like running your family- you sacrifice 15 years of your life working 7 days a week and then enjoy the remaining 30.Its upto you-which one you want first
They cant buy anything
by JayaKrishnan B (View MyPage) on May 05, 2011 01:19 PM
Cause its not hard cash. Most of the reserves are in US treasury bonds
china can buy everything but not indian politician
by hagoomaster (View MyPage) on May 05, 2011 01:10 PM | Hide replies
because indian politician have more money than china in swiss account
Re: china can buy everything but not indian politician
by firstname.lastname@example.org (View MyPage) on May 05, 2011 01:19 PM
Don’t be so fool.
Swiss bank deposits amounted to $2 trilion, and only $1 trilion is foreign depositors.
And foreign depositors are mainly from the US UK France Italy and so on, or other countries in the Middle East and Europe. How many from India? God kown!
Some people even don’t know the outside world, but like rhetoric
why we compare ???
by iam indian (View MyPage) on May 05, 2011 12:58 PM | Hide replies
I always wonder why we compare India and China when we r no where remotely close to them?jst because growth rate is same we cannot compete with china.with this figures those who dream of india becoming super powe by 2020 shud wake up…this target is very very faaaaarrr…china is miles miles ahead of india in terms of developments and growth. but one thing that beat china is CORRUPTION…china can never surpass india in coruption
Re: why we compare ???
by Kannan Palaniswamy (View MyPage) on May 05, 2011 01:04 PM
Why should we compare with China?
No need to make comparision.
India is India..has got its strengths and weeknesses..So as China
no wonder why US is depreciating their currency.
by savekarfrombjp (View MyPage) on May 05, 2011 12:58 PM
no wonder why US is depreciating their currency.
Presently, How lucky China is !
by Joseph (View MyPage) on May 05, 2011 12:53 PM
Japanese reserves may not be growing. Chinese reserves are growing. There was no big earth quake in China ! They are lucky ! Maybe someday they can rule America, Russia, UK, Netherlands, France, Germany, Israel and maybe even GOD!
What is Feng shui actually ?