China's consumption and investment have great potential to expand and they can help to sustain the country's growth amid the global economic downturn, said Ma Jiantang, head of the National Bureau of Statistics.
He also said the government's efforts to spur growth can boost consumption and stabilize the country's automobile, property and equities markets.
"China's infrastructure construction and people's livelihood have improved greatly during the past 30 years when China adopted its opening-up policy. But in terms of per capita figures, consumption and investment are still at very low levels and thus have great potential" to grow, said Ma in an article published in this week's issue of Qiushi, an official magazine of the Communist Party of China.
For example, the ownership of vehicles in China was only 3.3 percent last year, much lower than the United States' 84.1 percent in 2005 and 58.6 percent in Japan in 2004. Internet users accounted for 16 percent of China's population last year, compared with 73 percent in the US and 74 percent in Japan during the same period.
"Especially in rural areas, people still have huge demand for durable goods and services. In the process of urbanization, such demand will increase and contribute to the country's economic growth," said Ma.
To encourage consumption in rural areas, China's government has provided subsidies for farmers to buy big-ticket items like television sets, refrigerators, washing machines and mobile phones.
Also, the government has allocated part of a 4-trillion-yuan (US$586 billion) fiscal stimulus package to improve the welfare system in rural areas. In addition, China has decided to invest more in railways, highways and airports in the next two years to create jobs and maintain the economy.
(Shanghai Daily December 5, 2008)
