Resilience of the economy not to be underestimated

The rapid decline in China's foreign exchange reserves last year and the recent deprecation of the Chinese currency have been competing for headlines with the recent domestic stock market plunges, which dropped another 5 percent on Monday after two 7-percent dives last week.

Yet viewed from a longer perspective, these changes do not necessarily point to gloomy growth prospects for the Chinese economy, which is undergoing a necessary transition from growth led by investment and exports to more sustainable development driven by consumption and innovation.

Official data show that China's foreign exchange reserves fell to $3.33 trillion after posting a drop of $107.9 billion in December, the sharpest monthly fall on record.