How China's $US600 billion trade surplus will cushion it from collapse

The situation in China is, to borrow an old Viennese saying, desperate but not serious. Countries with a tight exchange controls and state banking systems may come to grief in the long-run, but they do not face the sort of financial collapse seen in the US and Europe in 1931 or 2008.

Because China has a trade surplus of $US600 billion ($816.48 billion) or 6 per cent of gross domestic product (GDP) - and is therefore accumulating foreign exchange - there is no chance that reserve losses will spin out of control.

The Telegraph London