China's decision to run massive trade surpluses and invest excess savings abroad (primarily in the US) is not made to accommodate US low savings, but is driven by China's own policies of high savings and rapid production; the Chinese leadership does not wake up and decide to help the US by investing there, but rather follows the pattern of all high-savers placing their capital in deep, liquid Anglophone economies (US, UK, Canada, Australia) with good corporate governance.
causalpending
Speaker
Michael PettisEvidence Quote
“the decision to invest in the United States is not made to reflect weak savings in the US. It's made to reflect excessive savings in China”
Source
Michael Pettis: China’s Consumption Crisis Is The World’s Crisis— The Monetary Matters NetworkCreated: 8/11/2026, 7:43:21 AM
My Notes
Loading notes...