CHAPTER V: CONSUMPTION STRUCTURE

The consumption structure of Chinese residents shifted from having inadequate food and clothing to having basic food and clothing to being well-off and affluent. Urban and rural consumption has gradually become more differentiated and stratified with diversified models, and the identification function of consumption has been enhanced. Social policy has a strong, shaping role in the changes of consumption structure. At present, the uncoordinated consumption structure is one of the biggest problems in economic and social development. Lack of coordination is characterized by changes in the resident consumption structure that are too early, proportional imbalance among the three main consumer bodies, overly large consumption gaps across strata, etc. Irrational distribution relations and class structure, social development that is lagging behind and policy displacement in stimulating domestic demand are the crux of why it is difficult to adjust the consumption structure. At present, the concept of stimulating domestic demand needs to be changed from “squeezing a sponge” to pursuing a “barrel effect”.