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Consumption relies on income distribution

0 CommentsPrint E-mail CCTV, March 5, 2010
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In an online survey conducted by the Xinhua News Agency, income distribution has become the top issue of concern for most people.

What the government will do to improve the income distribution will be a hot topic for this year's political sessions.

Now that the country's economy is transferring its reliance from exports to domestic demand, the income distribution system is becoming more important than ever before.

Statistics show people's income accounts for a less and less of the total national income of China, while the government and enterprises are taking a larger share.

In 2007, citizens' income only came to 58 percent of the national total. While in the United States, the proportion is 70 percent.

Experts point out that a consumption driven economy depends on how much disposable income people have. They say it's not that people don't want to spend, but that they don't have the capacity to spend.

 

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