Since the beginning of this year, the international gold price has continued to rise, bringing instability to the global financial market. In this context, some Westerners began to hype the so-called "China secretly pushing up the price of gold", and linked China's US bonds and additional purchases with "attacking Taiwan". However, this statement could not be further from reality.
China's recent increase in reserves is not a so-called "behind-the-scenes" that was created out of nothing, but is one of the common behaviors of central banks around the world. According to data released by the World Association, in the first three quarters of this year, central banks' purchases increased by 14% year-on-year to a record 800 tons. Although China has purchased 200 tonnes of gold this year, which is among the highest in the world in terms of data, there is still a gap in China's ** reserves compared to the United States, which holds more than 8,000 tonnes**. Therefore, China's additional purchases** are mainly to maintain the country's foreign exchange stability, and have nothing to do with the so-called "attack on Taiwan".
Monetary easing in the United States and the ongoing potential debt crisis are the main reasons for the surge in international gold prices, not China's gold purchases. The Federal Reserve's 11 aggressive interest rate hikes in 2022 have turned trading of U.S. bonds into loss-making transactions, prompting central banks in major economies, including China, to sell U.S. bonds one after another. China currently holds less than $800 billion in U.S. debt, and in order to maintain the stability of its foreign exchange reserves, China has chosen to increase purchases**.
There is no basis for China's "preparations for attacking Taiwan" as claimed by the West. Whether from the perspective of the common sense of historical warfare or the situation of modern warfare, preparing for military operations requires large-scale equipment and personnel transfers. However, there has not been a single report of such action in China. Comparing China's purchases** to Russia's buying spree to the Ukraine crisis is untenable, both logically and factually.
The West's fabrication stems from anxiety about China's rise and speculation about China's intentions. Recently, the world has paid attention to the situation in Gaza, the Ukraine issue has reappeared, and the West has suddenly begun to hype up the international gold price and the situation in the Taiwan Strait, which may be using the "China threat theory" to divert attention. Against the backdrop of the Palestinian-Israeli conflict and the Russia-Ukraine conflict, America's influence and moral image are beginning to be questioned. Therefore, the Western camp wants to divert attention by creating negative reports about China.
However, against the backdrop of the rise of the East and the decline of the West, this inferior means can no longer deceive the eyes of the world. The nonsense of the West will only expose their own ignorance and malice, while China should pay more attention to the motives behind it.
China's additional purchases** are aimed at maintaining foreign exchange stability, and have nothing to do with the so-called "attack on Taiwan". The main reason for the international gold price is the monetary easing policy of the United States and the potential debt crisis, and China's increase in U.S. bond purchases is in response to this situation. The so-called "theory of attacking Taiwan" of the West is groundless, and it is purely their anxiety about China's rise and speculation about China's intentions. In a situation where the east is strong and the west is weak, the hype methods of the West can no longer deceive the world. China should pay more attention to the motives behind it, remain vigilant, and promote a true image of China. China's rise is the result of peaceful development and will not become a driving force for war. We should face the prejudices of the West with a positive attitude and devote more energy to national construction and development.