2013-03-19 China Focus: Boosting Domestic Consumption
    2013-03-18 16:03:53     CRIENGLISH.com         Web Editor: Chen Cong




When more than 1.3 billion people want to spend more money, it is a huge boon to the economy. That is what the Chinese government has been trying to achieve, putting more consumption power into the hands of its people. But it won't be easy.

China might be the world's second-largest economy, but its per capita income in global rankings doesn't look nearly as impressive. It is true that China has a rising middle class that is more capable of spending, but the situation remains quite patchy as China's Gini-coefficient is now somewhere near 0.47, indicating a yawning wealth gap.

Even as the Chinese become wealthy, their desire to spend might be held back by a thin safety net. People have to save for a rainy day. China's savings rate now stands at a staggering 52 percent, while the U.S. has maintained its savings rate at well under 10 percent, despite the protracted economic crisis.

Against the backdrop of declining demand, boosting demand is the right way forward for China if it wants to sustain its growth, but it must boost its investment to increase people's incomes and reduce the savings rate.

So how can China encourage its people to spend more? And where does the greatest potential lie in boosting domestic consumption?

Ni hao, you're listening to  People In the Know, bringing you insights into the headline news in China and around the world. I'm Zheng Chenguang in Beijing.

We speak to Professor Zhang Jun, Director of the China Center for Economic Studies at Fudan University, and Professor Kamel Mellahi, Professor of Strategic Management at the Warwick Business School.
Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.


 
Hourly News more

The Beijing Hour more
The Beijing Hour updated 20:00 2014/05/23
Micro-blog: weibo.com/beijinghour

Highlights more

People In The Know more
2016-04-11 China and Canada: Closer Bilateral Ties Expected 
In this edition of program, we are joined by a Chinese-Canadian senator and a Canadian professor to take a look at the ties between China and Canada.
2016-04-08 Energy Security in Asia 
In this edition of program, we are joined by a scholar and a businessman to take a look at energy security in Asia?

Talk to CRI

News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ