18th party congress Preview

Three decades of fast growth have transformed China into the world's second largest economy. They have also created an economy that is excessively reliant on investment, exports and capital-intensive industrial development, and in pressing need of rebalancing. And they have exacerbated the gap between high- and low-income groups, and between cities and rural areas.

Increasing consumption is frequently pointed out to be the key to reducing China's reliance on exports and investment. However, despite a range of government initiatives, consumption has persistently remained low. At about 37 percent of GDP, consumption in China stands well below other middle-income countries and far below developed economies, depriving the economy of a reliable domestic engine of growth.