China has overtaken Japan as the world's largest holder of foreign exchange reserves, the Financial Times reported. Reserves reached US$853.7 billion at the end of February, compared to Japan's US$850.1 billion. The increase in the first two months of this year of about US$35 billion is partially accounted for by the trade surplus of US$12 billion and another US$5 billion-plus in foreign investment. People's Bank of China Governor Zhou Xiaochuan rejected US pressure for a rapid appreciation of China's currency to reduce the bilateral trade deficit and called for Washington to also make structural adjustments. �While China has been trying to relieve the problems, complaints are heard that the US has been slow in taking concrete measures to reduce its twin deficits and improve its savings rate,� he said. Zhou added that �if measured by per capita level, China's foreign reserves are not high�.