China’s foreign reserves hits USD 2,399 billion at the end of 2009 and is again the world largest. According to the statistics, the foreign reserve of China takes up 30.7% of the world’s total amount. Japan is the second largest country with an amount of USD 1,000 billion.

However, China’s taking more risks with so much foreign reserves in hand. Do you think it’s rational to have so much?

Are there problems behind China’s world largest foreign reserves?