http://english.pravda.ru/world/asia/16-07-2009/108191-china-0
16.07.2009
China becomes world's wealthiest state
China's gold and currency reserves have recently hit the mark of $2 trillion.
The nation can now boast of having the largest state reserves in the world. The
Chinese people save up to 75 percent of their country's GDP in spite of the
fact that China does not pay pensions and does not have free of charge
education and healthcare systems.
China's gold and currency reserves gained 17.8 percent ($177.9 billion) during
the second quarter of 2009. The nation's reserves increased by $7.7 billion
over the first quarter of the current year. Thus, the People's Republic of
China has saved $185.6 billion during the first six months of the year,
although it was $95 billion less than during the same-year period of 2008.
China takes the first place in the world on the amounts of its currency
reserves with Japan and Russia following it. Experts say that such a
significant growth was achieved due to the predominance of export over import.
The domination of export allowed to increase the inflow of foreign currency in
the country.
Young Chinese save their cash for a rainy day, just like their parents did 50
years ago. It is considered a universal tradition with every Chinese family,
regardless of their income.
All Chinese banks belong to the state - there is no market system there at this
point. There is no pension system in the country either, no free healthcare and
no free education at all. The people of China pay for everything themselves.
That is why the level of savings in China made up 45 percent of the GDP in the
beginning of the 2000s and reached the record amount of 75 percent in 2009. It
is hard to imagine that the Chinese save 75 percent and spend only 25 percent.
Specialists say that such a system can not be found anywhere else in the world.
It is worthy of note that the Chinese savings are not included in $2 trillion
of gold and currency reserves.
Experts continue saying that China will soon replace the United States as the
world leader on the economic arena. The talks about China's possible leadership
emerged soon after the beginning of the economic crisis. However, no one
expected that changes would come so quickly.
It is worthy of note that it is China's Petrochina that tops Ernst & Young's
list of world's largest companies. The USA's Exxon Mobil was ranked first on
the list only six months ago
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