Introduction
Even though China has been able to continue a record growth rate of 9.3 per cent in its
total output annually since the early of 1990s, the results of faster growth in the last
decade turned to be quite different from those of the 1980s. Economic growth in the
1980s was able to bring 13.5 million people out of poverty every year and create huge
job opportunities for rural immigrants. As a consequence of this income surge, growth
was sustained by increasing domestic consumption. In the 1980s, as result of
consumption-led growth, consumption accounted for over 70 per cent of China’s total
GDP. Typically, China experienced frequent incidences of trade deficit rather than
surplus during this phase of growth.
China’s growth