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By Wang Qing & Liu Tao, Institute of Market Economy, DRC

Research Report, No.128, 2018 (Total 5403) 2018-8-14

Abstract: China’s consumption is undergoing an unprecedented transformation in consumption items, ways of consumption for different consumers and the layout of consumption market. These changes have brought about enhanced consumption level, upgraded consumption mix and continuous economic growth in a bid to catch up with that of developed countries. Under the influence of multiplied factors of advanced globalization, the development of emerging technologies and the unleashing potential spawned by domestic market size, the consumption and innovation have become further integrated and coordinated. As a result, China’s consumption and innovation level is in step with that of developed countries and is even taking the lead in the world. This consumption transformation has exerted profound influence on China’s economic development. It is not only the main growth driver, but also an indicator for economic restructuring and upgrading as well as a sound ground for innovative start-ups to launch trials. In order to meet and create consumers’ demands, efforts need to be made in the supply-side structural reform, apply high-end technologies on a larger scale, boost demand both at home and abroad through greater openness and enhance the capability of large cities to foster new consumption areas through innovation so as to better meet the people’s ever-growing needs for a better life and enable consumption to play a stronger role in bolstering the high-quality economic growth.

Key words: consumption transformation, high-quality development, service consumption, policy options