摘要：De-globalization and geopolitical turmoil are presenting significant challenges to China’s export-driven growth model, highlightin

China & World Economy / 1–22, Vol. 33, No. 5, 2025

Balancing China’s Demand and Supply for Sustainable Growth: The Roles of Household Consumption

Guanghua Wan, Zhi Luo

Abstract

De-globalization and geopolitical turmoil are presenting significant challenges to China’s export-driven growth model, highlighting the urgent need to boost domestic consumption to maintain the supply–demand balance. This paper begins by identifying several stylized facts from multiple datasets: a persistently low final consumption share of GDP (falling to 48.91 percent in 2010), a declining household share of final consumption (offset by a high and stable government share), and widening consumption disparities across urban–rural, generational, and regional dimensions. It then reviews literature on key determinants of the household consumption rate: constrained household income (due to a low labor share, high inequality, and limited access to credit), weak consumption (driven by inadequate social security, limited public services, and cultural factors such as Confucian frugality and intergenerational obligations), and barriers to market accessibility (stemming from infrastructure gaps and uneven development of the digital economy). Finally, the paper makes targeted policy recommendations to address these constraints and unlock China’s domestic consumption potential for sustainable growth.

引用本文：

Wan, G. and Z. Luo, 2025, "Balancing China's demand and supply for sustainable growth: The roles of household consumption,"China & World Economy, Vol. 33, No. 5, pp. 1–22.

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China & World Economy / 23–48, Vol. 33, No. 5, 2025

Inequality and Household Consumption: The Role of Intergenerational Support

Xiaoshan Hu, Jishi Wei, Chengcheng Xu, Lei Zhang

Abstract

The reduction of economic development inequality is widely recognized as a means of promoting household consumption. Using nighttime light data combined with household survey datasets from 2010 to 2020, this paper investigated the impact of inequality on household consumption in China. The results revealed a significant negative relationship, which remained robust after instrumental variable regressions and multiple robustness checks. The effect was strongest among married households with children and insignificant for those unmarried or without children. Further analysis showed that the inequality–consumption relationship varied with the gender composition, marital status, and the age of household heads, as well as the number and educational level of children, emphasizing the role of intergenerational support in shaping up the inequality–consumption nexus. The study found that increased government spending on education effectively alleviated the adverse impact of inequality on household consumption.

引用本文：

Hu, X., J. Wei, C. Xu and L. Zhang, 2025, "Inequality and household consumption: The role of intergenerational support," China & World Economy, Vol. 33, No. 5, pp. 23–48.

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China & World Economy / 49–77, Vol. 33, No. 5, 2025

Broadband Infrastructure Construction and Consumption Inequality

Mingcong Chen, Qiqi Sun, Lizhi Tang

Abstract

This study examined the impact of broadband infrastructure on household consumption inequality in China. Using panel data from 2012 to 2018 and employing a staggered difference-in-differences design, it found that the Broadband China program reduced relative consumption deprivation. The effect was driven primarily by increases in household income and social connections. Reductions in inequality were more pronounced in rural and inland areas, among younger households, and in regions with higher market segmentation. By contrast, an earlier policy that improved Internet speed without expanding access was associated with increased inequality. The findings suggest that digital infrastructure can shape the distributional effects of growth by improving access for disadvantaged groups.

引用本文：

Chen, M., Q. Sun and L. Tang, 2025, "Broadband infrastructure construction and consumption inequality," China & World Economy, Vol. 33, No. 5, pp. 49–77.

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China & World Economy / 78–112, Vol. 33, No. 5, 2025

Abstract

E-commerce has become a driver of economic development in China. Drawing on China Household Finance Survey data from 2013 to 2023, this study examined the impact of the National Rural E-commerce Comprehensive Demonstration Project (NRECDP) on rural household consumption using a staggered difference-in-differences model. The results indicated that the NRECDP increased per capita consumption of rural households by RMB 321. Mechanism analysis revealed two main channels: First, the NRECDP promoted rural household participation in online sales, encouraged changes in planting structures, and raised income from agricultural sales, thereby easing liquidity constraints and stimulating consumption. Second, the project boosted online shopping, particularly in regions with limited market access and small market size, suggesting that it reduced transaction costs and geographic barriers, thereby unlocking latent consumption potential. Heterogeneity analysis showed that the digital economy had a stronger positive effect on households with lower education levels, those without formal loans, and the elderly. Further analysis demonstrated a synergistic effect between digital finance and the project in promoting rural consumption.

引用本文：

Wu, Z., Z. Yin and Y. Yan, 2025, "The digital economy and rural household consumption: A quasi-natural experiment based on the National Rural E-commerce Comprehensive Demonstration Project," China & World Economy, Vol. 33, No. 5, pp. 78–112.

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China & World Economy / 113–138, Vol. 33, No. 5, 2025

Human Capital and Conspicuous Consumption

Xiaonan Guo, Xiaomeng Ren, Jinchuan Shi

Abstract

Strengthening purchasing power, stimulating consumer confidence, and improving the structure and standards of consumption are essential for China’s successful economic development. Human capital is linked to income, wealth, social status, and cognitive preferences, and plays a long-term role in consumption growth. This study explored the impact of human capital on conspicuous consumption in China, using a novel individual-level measure – the visibility index – to capture conspicuous consumption. Drawing on data from the China Family Panel Studies (2012–2020), a comprehensive human capital index was constructed by combining cognitive and noncognitive abilities through the entropy weight method. To address potential endogeneity, the historical distribution of Confucian temples and ancient academies was used as an instrumental variable for human capital. The empirical results show that improvements in human capital can significantly increase conspicuous consumption, particularly among middle-income groups, rural residents, and nonagricultural workers. A key contribution of the study is the clear identification of social status signaling as the primary mechanism linking human capital to conspicuous consumption. These findings offer new insights into consumption behavior and human capital development in China’s increasingly complex and rapidly evolving socioeconomic landscape.

引用本文：

Guo, X., X. Ren and J. Shi, 2025, "Human capital and conspicuous consumption," China & World Economy, Vol. 33, No. 5, pp. 113–38.

来源：社科院世经政所