's Republic of China (PRC). In particular, we investigate to what extent reforms pertaining to the financial sector, social … protection, and healthcare may contribute to a rebalancing of the PRC's persistent current account imbalances. Our forecasting …-funded healthcare are also found to contribute to a rebalancing of the PRC economy. …

Over the last decade, the internal and external macroeconomic imbalances in China have risen to unprecedented levels …. In 2008, China's national savings rate soared to over 53 percent of its GDP, whereas its current account surplus exceeded …, the accession of China to the World Trade Organization has dramatically amplified the effects of these structural …

In this paper we evaluate the current account patterns of China and Germany. We point out that China's current account … of China, has mostly been characterized by sizable surpluses. We further find that both China and Germany's current … current account trends in future decades. Demographic transitions in China and Germany are projected to reduce their surpluses …

The paper offers an empirical taxonomy of the factors driving China's current account. A simple present-value model …, suggesting that shocks to precautionary saving are key in understanding China's surplus. These findings are robust to controlling …

's Republic of China (PRC). In particular, we investigate to what extent reforms pertaining to the financial sector, social … protection, and healthcare may contribute to a rebalancing of the PRC's persistent current account imbalances. Our forecasting …-funded healthcare are also found to contribute to a rebalancing of the PRC economy. …