Along with rapid economic and social development, China's consumption structure has changed remarkably in recent years. Chinese people now spend less on basic daily necessities and more on traveling, IT products, housing, medical insurance, entertainment and education.
Chinese travel more and choose to eat out, or enjoy traveling for tourism, helping to promote the catering and tourism sectors. The catering industry is currently growing at an average monthly rate of 10 percent. It achieved 231.5 billion yuan in retail sales from January through August this year, a greater growth rate than other retail trade business. During the first six months, Chinese also spent 55.1 percent more in travel compared to the same period last year.
IT products are becoming more popular. According to the National Bureau of Statistics, China has 59.28 million mobile phone users. Computers, electronic publications, video and audio disks, software, and digital home appliances are now owned by an increasing number of ordinary Chinese families. The sales volume of ordinary telephones and personal computers witnessed growth of 35.9 percent and 90.8 percent respectively in the first seven months of the year.
More money was spent on housing, while the public expanded their possession of savings deposit accounts, foreign exchange deposits, stocks and other financial assets. From January through July, 103.2 billion yuan was expended on housing purchase, 38.5 percent up from last year. Some commercial banks now offer loans to individuals for housing purchases, unprecedented several years ago.
Real estate development has also boosted the sale of building and decoration materials, and home improvement products.
Education is also booming. With the current sharp employment competition, Chinese families pay more attention to education for themselves and their children to meet the new challenges. It is expected that by the end of this year, urban residents will have spent an average of 395 yuan per head on education, accounting for eight percent of their total annual expenditure.
This pattern is the fruit of a series of government policies to push domestic demand, including raising the income of moderate and low-income families, extension of holidays, housing reform, and expansion of bank credit.
In addition, the living conditions of Chinese have improved noticeably. China's per capita gross domestic production (GDP) is expected to top US$800 by the end of the year.
(CIIC 10/19/2000)
