They could try to attract the foreign capital that America doesn't want anymore. It's a risky move, but it's what the CCP might already be working on.
Is it possible that foreign exchange reserves have declined due to capital flight?
perhaps indirectly yes. there is certainly little borrowing demand which the PBoC is fighting through the loans to domestic financial institutions.
Find it hard to imagine China seeing the Japanese experience as anything but a warning to avoid.
Some things are good in moderation and only bad in excess. Also, China's status quo can also not seriously be seen as desirable. They are simply too big to be nothing but a supplier to other countries.
Is it possible that foreign exchange reserves have declined due to capital flight?
perhaps indirectly yes. there is certainly little borrowing demand which the PBoC is fighting through the loans to domestic financial institutions.
Find it hard to imagine China seeing the Japanese experience as anything but a warning to avoid.
Some things are good in moderation and only bad in excess. Also, China's status quo can also not seriously be seen as desirable. They are simply too big to be nothing but a supplier to other countries.