The Relationship Between China’s Industrial Structure And Consumption Structure

The fundamental issue that there exists in China economic structure is thedisharmony between the overall development of the national economy andconsumption structure, which has led to economic growth’s over-reliance on importand export, furthermore, this disharmony is the crux of the various problems such asfinancial crisis in China. Based on the analysis of existing consumption structure, thispaper attempts to discuss the basic problem of China’s industrial structure with thecomparison from consumption structure to industrial structure of three industries, andvalidate the feasibility and correctness of the method on the base of empirical researchin U.S and Japan. Conclusions are as follows: China’s second industry is oversupplied, while the tertiary industry is over demanded. In the meanwhile, owning tolarge-scale export in second industry and large-scale import in the tertiary industry,the domestic demand of China faces a serious shortage.In the post-financial crisis era, the strategy for smooth adjustment of economicstructure should be as follows: adjustment of industrial structure need adapt to thecurrent domestic consumption structure, also remuneration of employees anddomestic demand should be improved in stages. According to Modigliani manuscriptGloria, population structure decides the savings rate of a country, but we cannotchange the population structure, the only thing we can change is the ratio ofconsumption on domestic and foreign goods. Therefore, we should reduce the demandof secondary industry and expand the domestic residents of the tertiary industry,vigorously develop the tertiary industry, and finally complete import substitutions ofservice industries while strive to develop the exports of service industry.