Consuming Philosophy

Some economists are bemoaning the problem of inadequate consumption in China. In their eyes, consumption has yet to drive thecountry's economic growth, like exports and investment. In the wake ofthe ongoing global recession, consumption is assumed to be a more effective remedy than ever before.     

Investment Still Matters

正The Chinese economy has entered a"new normal"characterized by a slowed growth rate.The three major growth drivers,namely demographic dividends,dividends from institutional reforms and investment,are running out.The"new normal"is also characterized by continuous optimization of the economic structure and a shift from investment-driven to innovation-driven growth.Many scholars argue that over-investment has caused imbalance in many areas,such as a large proportion of manufacturing sector in the economy and insufficient consumption.Therefore,they think the proportion of investment should be reduced if China wants     

Balance Game

China has acted swiftly and resolutely to recover the brisk economic growth it has enjoyed in the past five years. But growth is not everything. Analysts fret that the government's spending spree may complicate the country's efforts to edge toward a consumption-driven economy. What should we do to prevent the economy from falling off a cliff and at the same time switch the mix of growth from exports and investment to consumption? Yu Yongding, Director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, discussed this issue in an inter- view with China Securities Journal. Excerpts follow:     

LETTERS

Having read your article "Sci-tech Revolutionizes Frugality," I agreethat science and technology are key to the construction of a frugal society. It is obvious that China should embrace this revolution, as high energy consumption is not an option in a country with such a large population and limited natura resources. I believe that a frugal society should use advanced technologies to make the most efficient use of resources without controlling consumption or re- ducing life quality. I recent…     

QUALITY OVER QUANTITY

Over the many years of accelerated economic growth in China,there has been a general tendency in m any corners to fetishize GDP growth rates as paramount indicators of economic developm ent The simple logic of "bigger is better" has always been an easy sell to citizens and investors alike,and particularly in the wake of China’s joining the WTO,it has been the story above all others,arguably,that has captivated international attention,along with the persistent concern that at some point,those rates would decline and then,perhaps,all bets would be off.     

An Altered Pattern of Economic Growth

CHINA'S economic boom has been a focus of world attention For more than a decade. Its GDP having increased almost 13-Fold in the past 15 years, economy and development are two of the most Frequently heard buzzwords in the Chinese media. China is also holding its own within the global economy. and in 2004 was the number one contributor to global trade growth. Products "Made in China" are to be seen in every country in the world, as are Chinese investors. The rapidly growing Chinese economy has indisputably brought with it improvements to living standards, but has also engendered social problems. At the Fourth Session of the Tenth National People's Congress. Chinese Premier Wen Jiabao listed in his 2006 government work report the problems that have emerged in the past five years of economic and social development. They are: an irrational economic structure; lack of motivation to innovate: excessive consumption of energy resources; alarmingly high environmental pollution; uneven regional development and a widening income gap; and sluggish promotion of social welfare. In order to solve these problems, the Chinese government has proposed a new pattern of economic growth whose emphasis is on social development and conserving energy and resources. Within this new development mode, economic growth will depend less on resource consumption and more on technological and human resources. In the past, the government sacrificed rural interests in order to boost industrial development in urban areas. Its current plan is to invest in and channel funds towards stimulating the rural economy, and also to make various public services available throughout China's vast countryside.     

Chinese Green Cards Go Ahead

THE otherwise happy and fulfilling life of Canadian Louise Cadieux is marred by the nagging worry that she may not be able to get to her octogenarian mother in Canada at short notice, should the need arise. Louise is currently language consultant at the French Edition of China Today, and has lived and worked in China for 10 years. She explains, "I hold an annually extendable Foreigners' Residen-     

Miyun——Stimulating Tourism with Vouchers

THE global financial crisis has impacted consumption in China,and tourism is one area that has been hit particularly hard.So,in an effort to stimulate the industry,some of China＇s tourist hotspots have launched special coupons to attract more travelers to visit their sites and sample their delights.     

The Priority Is ‘Soundness’

It has been put forward in the Central economic growth is an innovation made on Economic Work Conference that China’s the basis of years of experience in China’s economy is to be developed in a sound and economic growth, which also enriches the rapid way, where “soundness” is particular- people-first outlook on development. ly stressed, different from the past emphasis For quite a long time in the future, given onthe growth rate. Theemphasis on “sound- the actual situation in China’s e…     

Lehman Brothers Predicts Slowdown for China in 2009

China cannot be inoculated against the world economic downturn the global investment bank Lehman Brothers stated recently at a press conference on 2008 Asian market liquidity, It predicts a slowdown in Asian economies, although it also believes the region＇s rapid growth will continue China＇s GDP growth is expected to decline to 9.8 percent this year, and fall to 8 percent in 2009. However, the crucial issue for the nation is coping with the excess production capacity that has been created by a much more rapid growth in investment than consumption,     

Local Legislation Giving Single Women Birth Right Caught in Debate

Chen Yifan, who is resolved to be single for life, has never expected that at 45, she can realize her dream of producing a baby for herself without having to get married—and legally. The woman is quite successful in her career as manager of a private company in Changchun City, Jilin Province, northeast China. Her personal life, however, is not. She fell in love with a classmate back in the early 1980s, and was heart-broken when the young man left her. Since then, the woman has found that no man in this world is good enough to be her husband. Though single, she wants to have a child of her own. "I'll be burning with envy whenever I see a     

Preserving the Past,Presenting the Future

正Through preservation and innovation,China is bridging the gaps between past,present and future.Ancient culture and modernity intertwine in the nation's rapid economic growth and daily life.And so it happened that21 young international professionals met in the heart of southwest China in early June.Their objective:to explore a land of contrasts seen as representative of China in its totality,aka Sichuan Province.Though landlocked,Sichuan has always maintained solid political and economic ties with its Southeast Asian neighbors as well as with Europe and the rest of the world.     

New Consumption Boosts Tourism

正Shifting spending patterns is redefining China’s travel industry The tourism industry may be the best indicator of the latest consumption trends in China.The data showing how people spent the New Year’s Day holiday demonstrate that consumption patterns in the country have changed,and in the     

MARKET WATCH

The Chinese economic rally has solidified as reflected in July macroeconomic data.Investment and consumption remained the biggest propellants of economic growth,while export decline slowed due to improved overseas demand.Inflation is not a problem for the time being as July’s inflation indexes both stayed in the negative territory.New loans nosedived in July as the second half of the year has seen many companies pay back their loans.Auto figures this year show that China has replaced the United States as th...     

Energy Savers

The government has mandated a reduction in energy use this year, but many wonder whether and how that goal can be achieved Pressure is mounting for China to reduce its energy consumption, but many say the government's target of cutting energy use per unit of gross domestic product (GDP) by 4 percent this year will be a major hurdle. Nearly half of the provinces and     

Overproduction Is No Issue

China's rapid growth is feeding growing concern that its economy may be faced with a crisis of overproduction. In an article published in the 21st Century Business Herald, Wang Jian, Deputy Secretary General of the China Macro-Economic Society, gives an upbeat analysis. His main ideas follow: In 2005, the investment rate in China went up to 43.3 percent, while that of consumption dropped to 38.2 percent. In the first quarter of this year, the investment volume rose 27.7 percent, double the rate of increase in consumption. The gap between     

A SOUND ECONOMIC FUTURE

"Promoting sound and rapid development of the national economy"is China's goal for economic development in the following five years,as put forward by Hu Jintao, General Secretary of the Central Committee of the Communist Party of China(CPC), in his report to the 17th National Congress of the Party. China used to target"rapid and sound"economic growth.The fact that soundness is preferred to speed for China's economic growth reflects an important change in the economic outlook of the CPC—China is beginning to value the quality of economic growth rather than the speed. How to attain the goal of sound and rapid development for the national economy is the subject of Hu's eight-point proposal.     

The Human Side of Poverty Alleviation

正Poverty shouldn't be a controversial subject, but it is. The World Bank, the World Health Organization, the U.S. State Department and pretty much every government in the world has a different definition of what poverty means. In China, absolute poverty is defined as 11 yuan a day; this is about $1.7. The World Bank disagrees and sets a higher number. In 2011 the U.S. considered people to be in poverty if their consumption was less than $21.7 a day. If that were the case, given inflation, almost all Chinese people outside of a few large cities would be in poverty. But living in China is different.     

Maintaining Confidence in China’s Economy

正China’s economy has undergone a profound restructuring since 2011,and its double-digit growth speed has gradually slowed down to 7percent or so.Such a shift in gears has stoked rumors that the country is headed toward a hard landing or even that the world’s largest developing economy is about to collapse. In fact,misunderstandings,doubts and even curses against China’s economy have been unceasing ever since the founding of the People’s Republic of China in 1949,especially in tough     

Tibet Takes a Great Leap over Sixty Years

This year marks the 60th anniversary of the founding of the People＇s Republic of China. It is also the 50th anniversary of democratic reform in Tibet. People of all nationalities in China, be they in Beijing or Lhasa, live in peace and prosperity and celebrated the arrival of the National Day falling on October 1. Over the last 60 years a new China that is democratic, harmonious and strong has risen. Over these same years, Tibet, an inalienable part of China, has also gone through great changes.