i didn't go through the entire article, but one reason china has a 50% savings rate - which the article didn't seem to mention - is that china's state-controlled financial system is screwed up. when you make money, you can either spend it (like the US does), invest it (like most places do), or just save it. when you have a messed up financial system that doesn't allow you to channel surplus to productive investment, as in china, you save it - eventually in the form of government bonds. the government then invests it, and as they can't find a good way to do that back in china they do it in the US.
so china ends up financing its exports to the US with surplus "savings". this is like the car dealer who gives you a 100% interest-free loan to buy more cars. as long as the dealer believes you will eventually pay it back, it's good for everyone.
