China’s rising consumer market is becoming top driver of its economic growth. Consumption has become the main driver of China's economic growth as nearly 80 percent of GDP growth is contributed by consumer spending. China’s capital-intensive investment and relies on imports and exports have fallen sharply. As consumption upgrades, and emerging consumption rises, it is expected that the consumer market will continue to strengthen the economy.
Experts at the conference said that China's consumer market is developing rapidly. Especially in the past seven to eight years, the role of consumer spending in GDP is changing. Almost 80 percent of GDP growth is actually contributed by consumer spending. Before the financial crisis in 2008, less than half of China’s GDP growth came from consumption. This is a huge change. The role of Chinese consumption in driving the economy will enhance. China's household consumption has become the first driving force for overall economic growth, while China's dependence on high capital investment and import and export has fallen sharply.
Based on the economic data for the first half of this year, domestic demand plays a determining role in economic growth, while consumption is the backbone of domestic demand, according to Mao Shengyong, news spokesman with National Bureau of Statistics (NBS).
It is worth nothing that transformation and upgrading in China’s consumption market are also making increasing contribution to the economy.
“With the upgrading consumption and rapid development of emerging consumption sector, the boost and support of emerging service consumption in tourism, culture, entertainment and sports fields are further emerging,” said Wang Heng, chairman of council of Committee of 100.
Zong Qinghou, president and general manager of Hangzhou Wahaha Group Co., Ltd., also considered that, about 300 million or 400 million of the 1.4 billion Chinese are from middle class. As these people have lived a rather rich life and enjoyed a variety of material life, they begin to choose a higher level consumption such as travelling abroad. Moreover, the consumption concept of young people has changed, which provides huge potential to upgrading in China’s consumption market.
Wang pointed out that China’s consumption market is shifting its focus from quantity to quality, and from product to service. The new trend will bring infinitive hope to various sectors and growth of the whole economy.
Translated by Coral Zhong & Vanessa Chen
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