Urban citizens have been reluctant to spend of late, and efforts to inspire their thirst for goods have largely failed. The host of dramatic changes, social as well as economic, generated by China's transition from a planned economy to market-driven economy has led many people to save for emergencies rather than spend freely. Many Chinese people, especially those above the age of 40, consider it morally wrong to spend tomorrow's money for today's pleasure. China should, at the same time, deepen reform of the consumption mechanisms. The country's individual consumer structure has undergone nothing short of a revolution.
People are no longer satisfied with a basic livelihood.
Cars and houses are the new must-have goods. China's consumer system should adapt itself to this change and eliminate depressive spending policies and various additional levies which have made things difficult for car buyers. Meanwhile, the state should speed up the commercialization of housing and take actions to accelerate the development of a second-hand housing market. Media Ltd. All Rights Reserved. All rights reserved.