China's economic growth pushed by domestic demand and relevant measures

By contrast to a slowdown in the world economy, China kept up a rapid growth rate, a relatively high quality of growth and low inflation for the year 2001. This is mainly due to the result of proactive fiscal policies that the Chinese Government adopted to stimulate domestic demand. Domestic demand can be divided into investment demand and consumption demand,

Domestic Demand Will Work

Chinese bankers are preparing to set up finance companies that provide consumer loans in major cities like Beijing and Shanghai. The reason?

Stimulus 2009--beef up domestic demand

The State Council conducted researches and deployed measures to further expand domestic demand to facilitate steadfast economic growth, as well as nailed down ten measures, which will invest in a total of RMB four trillion Yuan till the end of 2010 to stimulate domestic demand. Following that, the State Council issued six policies and measures to promote sound development of the light industry and other industries, like textile industry. This enables us to see the determination and action of the government in combating the financial storm and developing the social economy. Meanwhile, it is a good news to the textile industry in unfavorable situation, which can be deemed as an unprecedented powerful policy supports. Absolutely, this will bring a opportunity to China's textile industry. Therefore, we pick out items closely interrelated to the textile industry from the "10+6" policy for elaboration, so as to work out how we shall take full advantage of the supports. Wherein, the ten measures to expand domestic demand do not directly target the textile industry, but they will, with the implementation of various policies and investments, surely drive domestic demand to grow, and contribute to the growth of textile industry.

Domestic Demand Will Work

China can invigorate its economy by expanding domestic demand and boosting consumption chinese bankers are preparing to set up finance companies that provide consumer loans in major cities like Beijing and Shanghai.

Relying on Domestic Demand

China’s consumer price index (CPI) continued to rise, but has slowed down since March. Although the country’s producer price index (PPI) scored new highs for months, international commodity prices fell substantially. But the Gross Domestic Product deflator, another important index which measures the change in prices of all new, domestically produced, final goods and services in an economy, indicates that the CPI’s slowdown has not yet brought any relief from inflation in the country. Will China soon see the end of inflation, or was it just a breather before another inflationary peak? The 21st Century Business Herald, a business newspaper published semiweekly, interviewed Huo Deming, an economics professor at the China Center for Economic Research at Peking University, for some insights.

Three Relationships Must Be Balanced to Expand Domestic Demand

The slower expansion of domestic demand has put pressure on economic growth as the Chinese economy enters a new normal stage. Since the industrial structure can only be effectively upgraded through appropriately expanding aggregate demand, three relationships must be balanced:

Demand-Side Reform under the New Development Pattern:Theoretical Connotations,Bottlenecks and Implementation Approaches

In recent years,the changes in the external environment and domestic development conditions have promoted the transformation of China's economy to one dominated by domestic circulation.In December 2020,the Communist Party of China Central Committee put forward the demand-side reform for the first time in order to prepare China for the new development stage of the 14th Five-Year Plan(2021-2025)and to promote the new strategic deployment of China's high-quality development.Based on the paths and direction of the current 14thFive-YearPlan(2021-2015)tobuild a new development pattern,this paper elaborates on the theoretical connotations of the demand-side reform,points out the bottlenecks such as the unreasonable demand structure in China,the mismatch between the industrial system and the high-level demand,the resulting demand spillovers,the poor demand channels,and puts forward the current approaches to thedemand-sideereform in China.

Modeling demand/supply of water resources in the arid region of northwestern China during the late 1980s to 2010

Water demand increases continuously with an increasing population and economic development. As a result, the difference between water supply and demand becomes a sig- nificant issue, especially in arid regions. To figure out the utilization of water resources in the arid region of northwestern China （ARNWC）, and also to provide methodologies to predict the water use in future, three models were established in this study to calculate agricultural irri- gation, industrial and domestic water use in the ARNWC from the late 1980s to 2010. Based on river discharges in the region, the supply and demand of water resources at the river basin level were analyzed. The results indicated that agricultural irrigation demand occupies more than 90% of the total water use in the ARNWC. Total water demand increased from 31.97 km3 in the late 1980s to 48.19 km3 in 2010. Most river basins in this arid region were under me- dium and high water stress. Severe-risk river basins, such as the Shiyang river basin and the eastern part of the northern piedmont of the Tianshan Mountains, were found in this region. It was revealed that the water supply became critical from April to May, which was the season of the lowest water supply as determined by comparing monthly water consumption.

Home Market Effects of Foreign Trade in China's Manufacturing Sector:Analysis Using International Standard Industry Classification Panel Data

In this paper, we use 2002-2008 International Standard Industry Classification two-digit bilateral trade paneI data for manufacturing industries in China and the OECD countries to test for the existence of home market effects. We find that significant home market effects exist in 8 out of 12 industries. These industries include the food, beverage and tobacco industry, wood products, the paper products and printing industry, chemical products, other non- metallic mineral products, machinery and equipment, transport equipment, and miscellaneous products and waste resources recycling industry. Textile, clothing and leather manufacturing, oil refining and nuclear fuel manufacturing, rubber andplastics, and basic metals and fabricated metal products industries do not exhibit home market effects. Indeed, strong reverse home market effects occur for oil refining and nuclear fuel manufacturing and for the rubber and plastics industry. The empirical results reveal that certain industries benefit from new export opportunities due to the expansion of domestic demand in China.

China's Economy in 2007/2008:Coping with Problems of Runaway Growth

Fuelled by high domestic investment and rapid export expansion, China ＂s economy grew by ll.4 pereent in 2007, the highest increase since 1994 and the fifth eonseeutive year of double-digit growth. Such spectacular growth performance is unprecedented in the world＇s economic history. However, the Chinese Government is again worried about a possible ＂hard landing＂for the economy, as no economy can sustain very strong growth for extremely long period without overheating. Cracks in China ＂s economy are indeed emerging. The eonsumer priee index shot up to 6.9percent in November 2007, the highest level in a decade, with the annual inflation for 2007 rising to 4.S pereent, well above the government＇s ＂comfort level＂ of 3 percent. This prompted China＇s top leadership to declare that reducing economic overheating and curbing inflation would be the top poliey priorities for 2008. To contain such cost-push inflation, the government has to tackle its root causes, such as excessive liquidity, which is caused by the undervaluation of the renminbi, which in turn is attributable to China＇s chronic external and internal maeroeeonomie imbalances~ High growth is likely to continue in 2008, at around l O pereent, with inflation of S-6 pereent expected, despite the anticipated tighter maeroeeonomie control measures and the more troubled external economic environment （e.g. the expected US economic slowdown）. Regardless, China ＂s fundamental problems associated with runaway growth will largely remain. In addition, if the US economy slips into a serious recession, the Chinese economy will not be able to deeouple from it and escape unscathed.

Consumption Tax Reform in Accelerating the Establishment of a New Development Paradigm

Accelerating the establishment of a new development paradigm in which domestic and overseas markets reinforce each other,with the domestic market as the mainstay,has posed new requirements for deepening the consumption tax reform.Therefore,we need to focus on accelerating the establishment of a new development paradigm,combined with the establishment of a modern fiscal and tax system and tax attributes,and make effective institutional arrangements for comprehensively promoting consumption,expanding domestic demand and then forming a strong domestic market.It is meaningful to reduce tax on consumer goods involved in upgrading consumption to meet people’s needs for a better life and to raise tax on high energy-consuming,highly polluting and unhealthy consumer goods to enhance the regulatory role of consumption tax and to promote the overall optimization and upgrading of the industrial structure.The revenue of consumption tax on key tax items(categories)should belong to the central government to facilitate the smooth flow of the economic circulation.