Economic growth appears to be on a good track while Beijing’s policymakers have been quite adept at juggling potentially conflicting objectives. • Second, export demand continues to feed through strongly to China: China is still the pre-eminent downstream economy and therefore the primary beneficiary of recovering demand for manufactured products. There are some standard explanations for this high savings rate:• First, the social safety net in China remains limited, forcing citizens to save more. However, these conventional explanations for a high savings rate do not explain why there has been such a large rise in the savings rate since the pandemic. In short, the Chinese economy appears to be in relatively rosy health right now.

Source: The Edge Markets July 27, 2021 03:30 UTC