| China’s per capita GDP reached $ 4,453 in 2010, which indicates that China has entered the stage of the middle and upper income. Therefore, the biggest problem our country facing is whether we can achieve the transition from middle-income countries to high-income countries. Currently, economic growth is still one of the core issues across the "middle income trap". In the process of development, China’s economy expand by stimulating domestic demand and make the economy transform to consumption-led In 2012 the report of the party’s 18, to accelerate the formation of a new mode of economic growth, and to cultivate the development of new trends in the open economy, the development will input into the consumer economy heavily. China wants to achieve acrossing the "middle income trap" successfully, leading to a consumption-led development pattern, take a fair and sustainable scientific development.Consumption rate is an important measure of the share of consumption in the national economy, but also said the structural measure of indicating the final consumption in share of total demand, which reflect running state overall the economy, so that it can better guide the macro planning and formulation of economic policy. Consumption rate, especially consumer rate in China has been showing a downward trend. when our country has entered Therefore, it is important that improving the consumption rate for China to expand domestic demand is crucial.In this paper, the theory of income and consumption as a guide, analyze of the close ties of income and consumption rates. Through these theoretical basis, we have insight into the trend of consumption rate under the background of middle-income, explore the status of the income and consumption rates in our country, analyze the reasons for the low rate of consumption on the next stage, via the methods of empirical analysis, argument the relationship between income and consumption rates, research the factors of low consumption and provide some policy recommendations about improving consumption rate. |