From Chinese Press

High savings rate not bad

(China Daily)
Updated: 2010-08-18 07:45

The high rate of savings in China is natural, because its economy is in transition, says an article in People's Daily. Excerpts:

East Asian nations, including China, and some oil-producing countries have the highest savings rate.

The high savings rate in China reflects its transitional economy: deficient social security system and profit distribution, coupled with huge increase in national income because of industrialization.

But almost every developed country has gone through this stage. In China, the high savings rate, to some extent, has propelled the country's rapid economic growth.

There is a certain link between the world financial crisis and America's low savings rate. Western countries have such low savings rates because of their economic structure, overly optimistic attitude and failed economic policies. Shouldn't they then plug their own loopholes and stop blaming China for every crisis?

The world powers that want China to shoulder more international responsibilities because it is a big creditor should first fix their own economic structures to achieve sustainable growth.

(China Daily 08/18/2010 page9)