A comparison of Chinese, U.S. savings rates*

WANG Yi  and SHI Chunhua

Financial Survey and Statistics Department of the People’s Bank of China

Abstract:

The major statistical difference between the Chinese and U.S. savings rates is that the United States adopts the concept of a net savings rate, while China adopts the concept of gross savings rate in which savings include asset depreciation. Despite the different statistical calculations, we can come to the following conclusions: i) the savings rate in China has been rising and that of the United States has been falling; ii) the savings rate in China is high and that of the United States is low; and iii) the household savings rate in China is high and the personal savings rate of the United States is low. The gap between China and the United States’ savings levels reflects residents’ loss of a sense of security, an absence of enterprises’ social obligations and the enhancement of the government’s power over the whole economy during the process of institutional reform in China. Hence, while firmly promoting social-security system reform and advancing national income allocation system reform, it is of significance in the long term for China to restrain enterprises’ and government’s allocation behaviors and prevent public department interests from being solidified.

Key words:

Savings rate, national accounts, national income allocation

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