Earlier quoted context omitted.
The article is about undisclosed foreign reserves, not any foreign reserves. There’s general consensus among economists and political scientists that maintaining foreign reserves is both good for countries and for global peace, but that really only works if everybody knows you’re doing it[1]. In other words: it’s easier to think of untoward reasons for hiding foreign reserves than honest ones. That’s why there’s a st…
Why would any country in a remotely adversarial relationship with America disclose their foreign reserves, especially in USD and EURO after what they did to Russia’s reserves? Just means that anything the country does against western interests will get their known reserves frozen.
For one: failing to disclose foreign reserves makes a relationship more adversarial, not less adversarial.
For another: why are we assuming that China's foreign reserves are in banks that the US controls, or can otherwise curtail access to? The situation with Russia is instructive: CBR claimed to have around 50% of its reserves in US or EU institutions, but only a tiny fraction of that has actually been found[1]. It's much more likely that China, like Russia, is keeping the majority of its reserves in home (or friendly nation) banks.
[1]: https://www.intellinews.com/the-eu-can-t-find-most-of-russia...