The State Administration of Foreign Exchange (SAFE) released statistics on the 7th showing that China's foreign exchange reserves stood at $3.4003 trillion by the end of September, down $38.1 billion from the end of August, a decline of 1.11%.
SAFE stated that in September 2026, influenced by the global macroeconomic environment and monetary policies of major economies, the U.S. dollar index rose while prices of major global financial assets generally declined. Under the combined effects of exchange rate fluctuations and changes in asset prices, the scale of foreign exchange reserves decreased during the month.
Pang Ming, a member of the China Chief Economists Forum, noted that the reduction in China's foreign exchange reserves at the end of September primarily reflects valuation adjustments due to volatility in international financial markets, rather than significant shifts in foreign exchange supply and demand. China's foreign exchange reserves remain ample, still above $3 trillion.
"Fundamentally, China's macroeconomy remains stable and resilient overall, with emerging industries and innovation-driven momentum continuously expanding. Foreign trade, investment, and cross-border capital flows have remained generally steady, providing strong support for the balance of payments," Pang said. He added that current reserve levels are still at historically high levels, sufficient to withstand external shocks. The internal resilience of the real economy and sustained balance in the balance of payments can effectively cushion short-term impacts from global monetary policy adjustments and market sentiment fluctuations.
Looking ahead, Wen Bin, chief economist at China Minsheng Bank, believes China's exports will maintain strong resilience and continue to serve as a solid foundation for the balance of payments. He added that in September, both China and the United States reached a consensus on a reciprocal tax cut framework worth $30 billion, with U.S. tariff reductions focused on categories such as toys, home appliances, baby products, kitchen and bathroom goods, and holiday gifts-factors expected to boost exports of related consumer goods. Meanwhile, export market diversification and industrial chain advantages will continue to provide long-term support for exports.