Higher Consumer Spending Would Help China With Its Industrial ‘Overcapacity,’ Yellen Says

U.S. Treasury Secretary Janet Yellen has suggested that China could address criticisms about industrial “overcapacity” by getting households to save less and spend more.

Asked about this by a Caixin reporter, Yellen said at a press conference Monday that she had discussed with her Chinese counterparts how to address the “overcapacity issue” from the demand side. One possible solution, she said, is to lower China’s saving rate, which is currently close to 45% and is “among the highest in the world.”