DOES CHINA SAVE AND INVEST TOO MUCH?

The article focuses on China's saving and investment levels as of March 2006. For a developing economy like China, a high level of domestic saving and investment implies that residents are forgoing current consumption in order to add to the capital stock, that leads to an increase in labor productivity. The Chinese government has undertaken the wealth storage role for the nation by investing in U.S. government securities and European bonds. It compares the economic growth of China with that of Japan.