Prospect of Chinese economy after the financial crisis from the perspective of the rural consumption market
Finance 2
金晓燕
1141213
With the robust growth after the crisis, more and more transnational countries look good forward to Chinese market and eager to invest in China's market. After the increasingly saturated city market, some are keeping an eye on rural market.
Soon after the crisis in 2008, Chinese government enacted a policy that rural families could buy specified electrical appliances including color televisions, refrigerators, washing machine at the price 13% lower than those in cities. It is a preferential policy for the farmers and a signal to explore the potential of rural market vigorously.
Since the introduction of the reform and opening programs, we have quickened our pace of development. Before the crisis, China’s economic growth had been largely driven by fixed-assets investment and export demands, while consumption had been relatively weak. However, continued investment-driven growth would only result in excess supply and put an unsupportable burden on China’s resource base and natural environment. Investment, consumption export are the three essential factors to drive economic developments. As investment does harm to the environment, China should depend on consumption to further acceleration of economic growth. According to the research, when
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