On China's Consumption Potential And Mode Selection

The outbreak of the financial crisis took great challenge on China's economic growth, which makes us deeply reflect on China's economic development. China's economic growth has been depending on investment and exports rather than consumption. The development of economy is in close connection with driving power of consumption, which is also one of the troikas of promoting economic growth. The financial crisis had a great impact on China's exports, which made the economic growth significantly decreasing; China's high investment rate leaded to excess capacity and so on. Meanwhile our consumption was not enough, which restricted the consumption effect on economic growth to some extent. Lack of demand constraints growth of China's economy, lack of consumption is the radical cause of insufficient domestic demand.In financial crisis era, the global economy came into deep adjustment, what's more, external demand need to take a long time to recover. China is faced with some major issues: how to effectively expand domestic demand, especially consumption demand, how to enhance contributions of final consumption demand on economic growth. Our government has taken positive action to expand domestic demand, stimulate consumption. The economy of our country suffered a relatively lighter blow than other countries in financial crisis. Our country has made an indelible contribution on the recovery of the global economy. In recent years the rate of household consumption is declining, but saving rate remains high, environment of consumption is imperfect, and so on, which limit the growth of consumer demand. Consumer demand in China, including government consumption and household consumption, government consumption is relatively stable, but household consumption has relatively large changes. Therefore, researching on the question of the consumption of Chinese residents has important practical significance. This article is based on the theory and literature review. Considering the present situation of consumption in our country, for its lack of current consumption, this article presents its recommendations to solve it, further to release the potential of China's consumption. Comparing the consumption patterns of United States, Japan, Sweden, we learn their good experiences from them,combine with China's national conditions, proposing a series of recommendations on consumption patterns of innovation and promoting national economic growth of consumer demand.