The Chinese government is asking its people to spend a little more and save a little less to help get the country through the global economic downturn.
The Chinese are prolific savers, putting away at least 30% of their disposable income each month.
For many Chinese it’s a form of “self-insurance”. The money is saved in case it is needed to meet medical bills, the costs of education or in case someone in the family loses their job.
China does not have the same kind of welfare systems you see in the US, or in Europe or Japan, so there is not much of a “safety net” if the family falls on hard times.
How difficult then is it going to be to persuade Chinese people to break the savings habit?
via BBC NEWS | Asia-Pacific | Can China’s frugal savers help the economy?
