China's Bulging Forex Reserve and Yuan

This is the greatest thing and the greatest advantage against viz india i.e. china's bulging forex reserves which is about 1.3 trillion dollars which is increasing by about 50 billion dollar per month. This might turn fatal in future. The growth in forex reserve is not only due to increasing trade surplus. It is also due to increase capital flow!!! which is seaking returns from yuan appreciation in future.Piculiarity of this growth in the reserve is not associated with serious inflation in chinese economy !!! this is the greatest advantage, future disadvatage equally!!! It might turn in to massive appreciation in Yuan and would like to lead in to prolonged deflation and loss of business confidence, rising bankruptsies due to slowing industries and loss of competitiveness of its own industry and excessing cooling of domestic economy....So this way it it will provide bigger chance for indian industry in the export market viz china and lead to more growth of Indian Economy viz slowing chinese economy mean in other word rabit will definately take a nap !!!!! isn't it?????