The Crane

China’s economy is built on an extraordinary savings surplus: China’s gross national savings rate stands at ~43% of GDP, the highest among the world’s largest economic blocs. This is more than double the US' rate of ~18%. China’s savings rate has remained above 40% for nearly the entire century while the US has not exceeded 20% over the same period. Meanwhile, Japan’s savings rate is ~32% of GDP, while the Eurozone’s is ~24%, both well below China. A high savings rate provides a larger pool of domestic capital that can be used to finance investment, expand manufacturing capacity, and strengthen its industrial base. China’s savings surplus is a powerful source of investment capacity.