Chinese consumers still fall behind

In the dispute of world economy, the most concerned country is not America but the fate of China. China will become the most sacrificer or successful survival in the financial crisis of 2009? From now on, the reports are all positive, the Asian giant is regardless to the saying of chinese economy decrease, china is entering a new development step and growing up a consumer society which can compete with America to some people. The question is the consumer of pushing prosperty is not one person, because the chinese shopper has shrinked recent years, the real big buyer is government.

The resuscitation of chinese economy is actually the fact, but government is always the real buyer behind, and drives the development of chinese economy all the time, from the beginning of this year, the investment of government has increased 30%, 75% of them is used in basic establishment. The function of government hides the degree of depending on American export subsidy. Guangdong province is one of the places which have serious effect. A officer in foreign agency says that: we still strongly depends on export, especially to America. His frankness will discount the saying of chinese middle class consumers taking place of Wal-Mart’s. The chinese consumer amount in 2007 is 1.7 Tera dollors, while American reaches 12 Tera. The Triangle officers say that they are now promoting some ever exported jewelry, shoes and electric appliances to Hunan and Sichuan province. More and more people consider that the re-bounce of American markets still needs several years.

What’s more, the function of chinese consumers in economy has gradually fell down. The rate of individual consume in GDP has also decreased from 60% in 1968 to 36% in 2008 which is so different to what we said the strong middle class. Only the national consume takes 50% of GDP amount, china would truly get rid of the economy model of export driving type. At the end of this year, chinese government investment has raised from 40% in GDP to 45%, this phenomenon even did not happen at the Japanese re-construction after world war II.

At early years, china has experinced the process from crisis to resuscitation, the asian economy crisis in 1997 and the break of internet bubble. While governments fund is just used for urgent need in the two experiences, it is to win the time of global economic resuscitation. However, this time is different, the west countries are on their way to relive, but export does not change the situation. China has started to establish the system of social protection, which will give more trust to the consumers, it is for sure that the gradual economy boom will also encourage the outpay of consumers.