An economist argues that China's high savings rate and current account surplus benefit the global economy, particularly emerging markets, contrary to G7 and IMF recommendations to reduce it through increased consumption.

South China Morning Post

The G7 economists’ memo from March and the IMF’s April report on global imbalances arrived at the same prescription: China’s current account surplus is excessive and should be cut by boosting consumption.
The diagnosis is wrong. The world economy, especially emerging markets and developing economies, benefits from China’s high saving.
A current account surplus is the excess of national saving over domestic investment. The saving is not lost; it is exported abroad in the form of net capital...