To Build A Long-term Mechanism For Expanding Consumer Demand In China

Consumption, investment and exports are driving economic growth of the country"three carriages". More than30years reform and opening up, China’s economic growthmainly comes from exports and investment, and attaches to the end consumer isobviously inadequate.2008international financial crisis, in order to promote thelong-term and stable growth of China’s economy, Jiang17plenary session made clear,attaching importance to the pulling effect on economic growth in consumer demand,build expanding consumption demand of long-effective mechanism. Therefore, onlygradually change the way economic development so that the "troika" coordination ofstimulating economic growth, is the strategy of expanding domestic demand in China.In1978to2010GDP and consumption level of analysis we can see that the finalconsumption in China’s contribution to the economic growth rate is on the decline,domestic consumption rate is obviously inadequate, total consumption of urban andrural differences, residents consumption rate has fallen. Further application ofquantitative analysis methods, impacts on residents ’ spending on economic growth inChina: an empirical analysis, by comparing the effect of investment on economicgrowth, describes the consumer is the leading force in promoting economic growth.Proves the importance and necessity of expanding consumer demand.Implementing expanding consumption demand in China under the background offinancial crisis policies, these policies within a certain period of economic growth as awhole has played a catalytic role. But the long term effects are not very clear, there aredefects, whether fiscal policy, monetary policy, incomes policy, or other policies tovarying degrees of problems. To achieve long-term economic stability for sustainablegrowth, expanding consumption demand of long-effective mechanism must beestablished. Establish a mechanism for expanding consumption demand, you must firstestablish the basic principles. These include: the "people-oriented" principle, the "three benefits" principle,"integrated and coordinated development" principle and the"fairness" principle. Follow these principles of constructing long effective mechanismfor expanding consumption demand path, shall do everything possible to expandemployment, and efforts to improve income, particularly for rural residents income;improving income distribution system in China and the social security system;promotion of new consumer innovation. In order to guarantee the long-term mechanismto work, countries must invest, promoting urbanization construction and perfect systemof legal protection and support.