Research On Establishment Of The Long-term Mechanism Of Expanding Consumption Demand

Consumption demand is not only the starting point of economic activity, but also the final destination of economic behavior. Under-consumption is the long-term problem, which affects the stable and sustainable development of the Chinese economy and society. On October18,2010, the fifth plenary sessions of17th central committee of the communist party of China put forward the upcoming Twelfth Five-Year Plan for economic and social development."Adhere to the strategy of expanding domestic demand, especially consumption demand" was proposed in that plan and the long-term mechanism of expanding consumption demand was first explicitly proposed. The plan also requested that "consumption demand should be regard as the strategic focus of expanding domestic demand, further release the consumption potential of urban and rural residents, and gradually makes the total domestic market of China to be the top of the world". All the statements marked the work, to expand domestic consumption demand, especially expand resident consumption, had been brought into the institutionalized, normalized and generalized orbit.This paper regards "the long-term mechanism of expanding consumption demand" as the study object, aiming to explain the concept connotation, basic features, driving factors and restricting factors of the mechanism. The first part explains the basic concept and basic characteristics of the long-term mechanism, states the macroscopic background and significance to establish the long-term mechanism of expanding consumption demand in the view of current situation of China’s economy and society, summarizes the domestic and foreign scholars’related research, and analyses the two driving factors of this mechanism in theoretical analytical method, which consists of institutional innovation and technical progress. In the next, the paper reviews Chinese government’s policy exploration to establish the long-term mechanism of expanding consumption demand from1998by stage, and analyses the consumption status of China in three aspects, including final consumption rate, consumption structure and consumption security, based on the analysis, the paper states the long-term mechanism of expanding consumption demand has not been fully established in China. Afterward, the paper discusses the restricting factors of the long-term mechanism in the two dimensions of institutional basis lacks and technology foundation lacks. Specifically speaking, the lacks of institutional basis include the unsound consumer rights prot ction system, imperfective income distribution system, unsound government management system and imperfective market system construction, the lacks of technology foundation include that the speed of product development is slow, the ability of product innovation is weak, and the assurance of product quality is low. At last, this paper expounds three big basic principles, including overall consideration principle, livelihood issues guiding principle and benign interaction principle, connecting with ecological civilization construction, livelihood issues, and the relationship among consumption, investment and export, and then proposes relevant policy recommendations to establish the long-term mechanism of expanding consumption demand.