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Chinanews, Haikou, April 23 - According to a report by McKingsey & Company, a famous global management consulting firm, China is experiencing an important economic restructuring, after which consumers will play a more important part in China's economic development. A consumer-based Chinese economy will surely benefit the whole world.
The report was released at the 2007 annual conference of Boao Forum1 for Asia, saying that China will give up its investment-based development pattern in the next 20 years, in favor of a consumer-based economy. During the economic restructuring, the income of Chinese will greatly increase, even to surpass China's GDP growth, which means that China will have a more balanced development pattern, and witness a new round of rapid economic growth. Eventually, the repayment2 rate of investment in China will become lower, thus investment will be cooling down. However, Chinese will be more willing to spend, as their income grows, which will definitely stimulate3 economic growth. McKingsey estimates that consumption will contribute to 41% of China's GDP in 2015, and even 45% in 2025.
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