Skimmed the paper and read in detail section 6 on the macroeconomic causes of the imbalances. Love the focus on national savings as the underlying cause of the imbalances. Wish they had drawn out the following point:

1) It's the low household SHARE of GDP (50%), NOT the high household savings rate, primarily responsible for the high national savings rate (they frame it as "ability to live beyond means," which makes most people think "Chinese thrifty, Americans spendthrift" but that has very little to do with it). By definition, 50% of their output will be savings/investment, even if their household savings rate were 0%. Whereas the US could have a much higher household savings rate and STILL have a MUCH lower national savings rate simply because the US household share of GDP is like 73%. Emphasizing this point makes clear the remedy--rebalancing of domestic income within China, which should be our ultimate trade policy goal. Once China rebalances all the domestic distortions responsible for their trade surplus will disappear.