The Economy And Domestic Demand In China

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The problem was exacerbated by a construction project on the roadway that began five days later, a spokesman for the Beijing Traffic Management Bureau told the Global Times. Small accidents and broken-down cars have also been a factor since the congestion started.the world's biggest market for automobiles, the first time any other country has bought more vehicles than the nation that produced Henry Ford, the Cadillac and the minivan.

Residents in the area have reportedly sought to capitalize on the captive drivers by setting up food and drink stands along the roadway. However a number of the drivers complained about exorbitant prices.If they can get the surplus down, that will help the global economy, but it will also help build domestic demand and household income.

First, China is going through a "middle-income transition" in parts of the country as earlier "growth drivers" in the export sector, notably low-wage manufacturing along the coast, die off and must be replaced with other drivers such as services. The domestic consumer will have to become more important so there is a better match between the productive potential of the economy and domestic demand.


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