Core Viewpoint - The article emphasizes the need to increase China's resident consumption rate, which has been persistently lower than the international average, as a key focus of current economic policy aimed at boosting domestic demand and achieving a balanced economy [2][6]. Group 1: Characteristics of Low Consumption Rate - China's resident consumption rate was 39.9% in 2024, significantly below the average of 52.8% among 44 sample economies [6][8]. - The consumption rate has shown a slight upward trend since 2011, aligning with the U-shaped pattern observed in international experiences, but this trend has not been sustained in recent years [8][6]. Group 2: Causes of Low Consumption Rate - Public service subsidies are identified as a primary reason for the low consumption rate, with China's social transfer payments accounting for only 7.0% of GDP in 2023, compared to 12.5% for the sample average [10][9]. - Price differences, particularly low prices in China, do not significantly explain the low consumption rate, as adjustments for purchasing power parity (PPP) only marginally increase the consumption rate to 42.0% [13][12]. - Statistical methods, such as the change from historical cost to virtual rent for housing, have only slightly improved the consumption rate, indicating that measurement issues are not the main cause [20][19]. Group 3: Disposable Income and Consumption Rate Discrepancies - The share of disposable income in GDP is relatively high at 60.8% in 2023, but the initial distribution of income is low, with labor compensation and property income being insufficient [37][25]. - The property income share is particularly low at 3.2%, with dividend income at only 0.5%, indicating a need for policies to enhance wealth distribution [33][32]. Group 4: Structural Reasons for Low Consumption Rate - The allocation of public resources has favored investment over consumption, leading to an imbalance in demand and supply [59][60]. - Income inequality and demographic changes, such as an aging population and low birth rates, further suppress consumption potential [63][62]. Group 5: Policy Recommendations for Increasing Consumption Rate - Policies should focus on both cyclical and structural aspects, enhancing consumer capacity and willingness, and aligning supply-side and demand-side strategies [69][68]. - Specific measures include increasing fiscal and monetary support, optimizing public resource allocation, and improving social security systems to boost consumer confidence and spending [70][69].