That the Chinese government likely over-estimates GDP is widely known (some indicators are reported magnitudes faster than any other country). The increased debt and factory exodus are probably uniformly bad.<p>On the other hand, a decrease in cash reserves is almost certainly in China&#x27;s favor. The government has been struggling for years to get rid of its enormous US currency holdings. Especially as we start to see the yuan strengthening and the Fed raise interest rates, it&#x27;s important for China to extract as much value out of the USD as soon as possible.