scfranklin94

China's Three No's to the U.S.: Is Washington Listening?

If you live in a country without a social security net and you have been restricted to only having one child per government mandate, what do you do to prepare for your financial security in retirement?

You save everything you can, and that is what the Chinese have done.

This is reason the Chinese save so much, and they need to. Investing in their country is a good idea, and they have to a large extent, but their population is going to age faster than that of the Japanese. Little known fact is that the Chinese labor force probably peaked in 2008, future growth depends on better utilization of the masses of migrant and under-employed workers. If the Chinese fertility rate stays at 1.22 (2.1 is the replacement rate), the Chinese population will hit it's peak around 2040 and go down from there.