Maybe that is why this is a wealthy country in real terms. If they ever sold off the bonds that they are holding in other currencies the whole financial system of the world could fall.
Includng USA and Europe. People underestimate the actual wealth of the country by comparing it to wages paid here. Maybe their financial idea are good ones to follow.
I am more than hapy with them.
Willy
Willy...one small correction to your very true post...for "could" fall...substitute "would" fall !!!
Despite everything, China is still generating 20% of its GDP from domestic savings...ie the amount that the average Joe puts away each week....which is pretty impressive when we consider that their average wage is less than $6,000 per. Thus their Government always has large cash reserves with which to buy up the Bonds and Securities from Foreign Countries without incurring massive funded debt which would drive up inflation and Interest Rates.
They've clearly got it more right than the rest of us !!
In Australia, our household savings generate less than 2 % of our GDP !!!...we spend it all on Chinese goods !!!!
David