While China's investment rate is extremely high, its saving seems even higher, and it has accumulated a large stock of dollar assets. So it appears that there has been in a number of countries an excess of saving over national investment needs, which has flowed abroad looking for returns. All other things given, this puts downward pressure on the international cost of capital.
In which regions of the world would such capital end up? The answer is that it would be expected to gravitate to those regions where the demand for capital is most likely to rise in response to a decline in its price.