The world wants China to spend more and save less, and urges Beijing to allow its currency, the renminbi, to appreciate to increase the nation’s purchasing power. But to understand this culturally sensitive topic, it is worth understanding how Chinese people think about money.
Official statistics show that total savings make up more than 50% of the country’s gross domestic product GDP, significantly higher than the previous world record held by Japan’s 30% total savings. More remarkably, the enthusiasm for saving prevails from the authoritative central government, from cash-rich state-owned enterprises to low-income migrant workers.
Why Because the Chinese lack a sense of security. The nation...
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