CHINA: In an op/ed in the China Daily today Shen Dingli refuted the claim that China’s high savings rate led to the cause of the U.S. real estate bubble bursting. These claims were made by none other than Ben Bernake.

China has no social security system yet, similar programs are being “mapped out” right now, and it may be years before they do. As a result, Chinese citizens save a larger percentage of their money than American citizens. For a country who’s average per capita GDP is about 5% of the U.S., being able to save at all is impressive. Also accuses American businessmen for trying to pass the buck for overspending.

It is interesting to read a Chinese writer talking positively about the transformation into a consumer culture. But mathematically, China still has a long way to go. Their GDP as a whole is about 1/4 of the U.S. and their per capita is 1/20. Not very much of that money is trickling down to the consumers.

Article from the China Daily: Logic of blaming China for US crisis is bizarre