by Ben O'Hara-Byrne
That the Chinese are among the biggest savers on the planet may have a familiar ring to it, but a new study finds stiff competition to put a ring on it (as the saying goes) is a big part of the reason why, believe it or not, it could be having an effect on the global economy.
In a major city such as Beijing, China's gender imbalance is harder to see, but go to a village even a few hours from here and you'll immediately notice there are more boys than girls around – a lot more.
No wonder. China's family planning policies and a historical preference for boys now pegs the gender gap at 122 boys for every 100 girls (it reaches as high as 140 to 100 in a few rural provinces, imagine that playing out at a high school dance).
Get breaking National news
Add it all up and it means by 2020, an estimated 24 million men (more than the entire population of Australia) will be left standing (alone) in the nationwide game of matrimonial musical chairs.
So to avoid having to roam this land with the swelling ranks of those forced into bachelorhood, Chinese men (and their parents) are stashing their money away at a furious rate in hopes of getting a head start up the wedding aisle (so to speak).
A Chinese boy stands by a billboard showing children in Shanghai. With China's population control restricting the number of children, parents prefer male offspring for their greater earning potential as adults and thus their ability to care for their elderly parents. A recent study by the government-backed Chinese Academy of Social Sciences named the gender imbalance among newborns as the most serious demographic problem for the country's population of 1.3 billion. Photo by Philippe Lopez, AFP/Getty Images.
According to a new study by a professor at Columbia University, the fact that Chinese households save an estimated 30 per cent of their take-home income (double the rate of a few decades ago) can be chalked up in great part to the fierce competition to find a bride.
Wei Shang-Jin found households with sons saved more than those with daughters, and that it was especially true in regions where the gender imbalance was more skewed.
If he's correct (and there are skeptics), it would mean that gap is helping fuel another major imbalance: the account deficit between the U.S. and China.
In a nutshell, Chinese families saving more and spending less to help their sons find brides, in some part, helped (and helps) China buy up U.S. debt which allowed (allows) Americans to save nothing and spend like there's no tomorrow, with – as is now so well catalogued – disastrous consequences for the global economy.
It's probably just of one many explanations as to why Chinese households save so much more than the average Canadian or American one (others could include the lack of a social safety net, much more limited access to credit, etc.).
But it also seems pretty clear the consequences of China's gender gap are not only being felt by the growing ranks of bachelors here – but also far beyond the country's borders.
Ben is Global National's Asia correspondent, based in Beijing.
- Canadian woman charged with illegally crossing into U.S., kicking border agent’s face
- A new ‘cold’ war? Canada looks to bolster Arctic security, sovereignty
- Canadian furniture industry still ‘reeling’ after Trump pauses tariff spike
- Ottawa propose fines of up to $1M for violating foreign influence registry rules
Comments