China has a higher saving rate than the United States.One economic explanation for this fact is that:

Question

Quizplus · Accepted Answer

The higher saving rate in China compared to the United States can be explained by the fact that the Chinese have a lower rate of time preference, i.e. they value future consumption more than present consumption. In contrast, Americans have a higher rate of time preference and tend to place a higher value on present consumption, thus leading to lower saving rates.

China Has a Higher Saving Rate Than the United States