Consumption in China: following the golden rule?

Consumption in China: following the golden rule?

July, 2012
Yukon Huang
With China’s economy slowing faster than expected, Beijing is considering a variety of stimulus measures. Some favour investment projects and others insist on easing monetary policies, while the cautious push for a consumption-driven approach. But such hopes are tempered by the much-publicised decline in the share of consumption, from 50 per cent to below 35 per cent of GDP over the past 15 years. This trend is considered the clearest sign that China’s growth process is unbalanced, with consumption repressed and investment overdone.