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Chinanews, Shanghai, Dec. 5 – By 2020, 55% of Chinese families will make an annual income of 60,000 – 200,000 yuan each and 6% of Chinese families' income will even exceed 200,000 yuan a year. The increasing family earnings1 will boost Chinese people's consumption to a new level, said Zheng Xinli, deputy director of the Policy Research Office of the CPC Central Committee, last Sunday.
He made the statement at the China Top 100 Listed Companies Forum2. At present, Chinese economy is characterized by high investment level with low consumption. Chinese people's income in relation to GDP has actually been decreasing. In 2006, Chinese people's consumption rate even hit a historical low point, Zheng said. At the 17th CPC national congress, it was proposed that in the next phase, China should shift its economic mode from one that heavily relied on investment and export to one that consumption, investment and export would all take a proper proportion. The new policy will exert a great influence on the Chinese people. In the coming years, as the government will implement3 a policy aimed at promoting domestic consumption, it is expected that Chinese people's income will make up a larger proportion in the nation's GDP, Zheng noted4.
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