Henry Acland, Asia: NZ Online, 26th May 2009
 
The Chinese economy is changing as Beijing attempts to lessen the worst effects of the crisis. It is using the stimulus package to spur domestic demand and also as a catalyst to change how its economy expands in the long run. In recent months, China’s GDP growth has weakened but domestic consumption has not. New Zealand exporters are gaining from increased spending by Chinese consumers coinciding with favourable trading conditions.
 
China’s strategy for stimulating domestic demand is two-fold. Essentially, it must keep the economy growing at a steady rate. China needs, and to some degree seems to be creating, significant domestic demand for many products that previously were sold abroad. Subsidies introduced to help farmers buy home appliances, such as colour TVs, air conditioners, personal computers and so forth, are targeted at doing just this. China faces many immediate challenges, significantly unemployment. China’s economic and social stability are at risk if the stimulus does not dilute the most negative effects of the crisis.
 
See the entire article at: http://www.asianz.org.nz/our-work/action-asia-business/action-asia-insights/growing-appetites-china