Factors Affecting EIT Resident Chinese Consumer Demand

Since the implementation of reform and opening up policy, China enjoys anacceleration of economic transformation. In the21st century, Chinese economy hasshowed its underpower in both domestic consumption and international exportation as aresult of the reduction of the advantage in low-cost foreign trade, the up gradation ofinternational industry and technology, the acceleration of the speed of innovation aswell as the increasingly growth of both domestic and broad market competition. Sincethe late90s of the last century, how to expand domestic demand has become thecommon topic which attracted the concern of both scholars and decision-makers.This paper takes the factors affecting household consumptions demand in Chineseeconomic transition period as its major subject. First, the paper takes the decline ofhousehold consumption as the entry point to analyze the current situation andcharacteristics of household consumption in Chinese economic transition period,compared with the same data from some other countries in the same period to get aoverall location of level of household consumption demand in economic transitionperiod. Then tease out the factors which affect the demand in different stage ofhousehold consumption in Chinese economic transition period with the aid of classicconsumption of theories. Next, we analyze these factors by empirical analysis. Finally,starting from the main tone of present China’s macro-control which will also last for acertain time in the future, the paper proposes a series of recommendations. It will helpstabilize the consumer market, improve consumers’ confidence, specifically propose toincrease the income of residents and stabilize the expectations of consumers, etc.