From December 16 to 17, the "Sanya · Finance and Economics International Forum" with the theme of "Exploring the Road to high-level opening-up in a complex environment" was held in Hainan.

At the meeting, Yu Yongding, a member of the Chinese Academy of Social Sciences, said that according to estimates, the ratio of US national debt to GDP will continue to rise, which means that over time, US net overseas debt will continue to deteriorate.

Given the low coupon rates on US Treasuries, and given the consequences of the dramatic expansion of US net overseas debt, an orderly reduction in China's holdings of US Treasuries is necessary.

Yu Yongding believes that China should step up the adjustment of the structure of China's overseas assets and liabilities and improve the return on foreign net assets.

First, to reduce the share of foreign exchange reserves in overseas assets, not to sell US Treasury bonds, but to reduce their holdings in an orderly manner.

Second, improve the safety of China's overseas assets, especially its foreign exchange reserves. Under the current conditions, China should try to reduce the stock of foreign exchange reserves to the internationally recognized level of foreign exchange reserve adequacy.

Yu Yongding stressed that China should keep its foreign trade balance as much as possible, and maintain a roughly balanced state of import and export.

"We can have a trade deficit for a certain period of time, but China's economic growth cannot rely too much on external demand."

We should realize the transformation of economic growth mode, that is, "the cycle within the double cycle". To this end, we must maintain a high growth rate of China's economy, which requires us to adopt an expansionary monetary policy, which is conducive to maintaining the safety of China's foreign reserves and overseas assets."

Yu Yongding said that the fundamental way to achieve the optimization of overseas investment position structure and international balance of payments structure is to implement the development strategy of "circulation-oriented within the double cycle".

Through expansionary fiscal and monetary policies to stimulate economic growth and promote the increase of imports, it will help achieve the balance of international payments and optimize the structure of overseas investment position.