The Negative Impact Of China's High Savings Rate On The Economy And Countermeasures

Since the reform and opening up, China has made brilliant performance in various fields ,the national economy has maintained rapid growth. Because of this economic growth was mainly driven by investment in large-scale expansion, investment in domestic savings is the basis of support, so the scale of China's total savings are growing, including government and corporate savings, the high proportion of total savings. The high savings and high economic growth for both the existence of a positive relationship, but also on the healthy development of China's economy had a negative mechanism.In this paper, based on the traditional theory of the savings rate, combined with the current economic background and trends, to analysis current situation of China's savings rate. And with a representative of the developed countries - the United States and Asia belong to similar social and cultural background of Japan's savings rate comparison can be drawn from China's high savings rate,in the fact that it has seriously affected China's domestic and external Economic balance. First, the high savings rate on the internal economic imbalances reflected in the income distribution, investment and consumption structure and industrial structure of employment, etc. Second, through the balance of payments and exchange rate issues in the analysis, we can see that high savings rates also exist in the external economic imbalances. In order to better study the high savings rate on the impact of economic imbalances, especially the impact of Decisive role of the internal imbalance, we construct the economic model and through the empirical analysis is given by the relevant policy recommendations.The face of today's imbalances in China, we should improve the social security system, prefect the financial market, regulate aspects such as income structure, to ensure at the same time of rapid economic development, the social environment can be healthy and stable growth.