The Factors of Changes in Chinese Personal Consumption Structure in XXI Century

Due to an economic slowdown in China, caused by the impossibility to further develop by the export orientation, there is an aim stated by the Chinese government to reorient towards the domestic demand and consumer society. Although the incomes of Chinese households are growing, there is a problem of low personal consumption and a high savings rate that can hinder the transformation towards domestic demand. In this study, we make regression models, based on data from Chinese Institute for Income Distribution, to analyse the factors that influence expenditures of Chinese urban and rural household. The results show recent improvements in the personal consumption structure and explain what factors mostly contribute to the high household savings. These findings might allow scholars to advance their studies on the issue of consumption behaviour of Chinese households, as well as give the information for business entities about the current state of Chinese domestic market.