the country hopes to again double its GNP and ensure a relatively comfortable lifestyle for Chinese citizens at the turn of the century.

An investigation of 35,680 city and township households carried out by the State Urban Social Economic Investigation Team revealed that between April and June of 1993 average actual monthly per capita income in China's urban areas was 194.69 yuan, while actual expenditures were 186.21 yuan, consumer expenses being 161.58 yuan. For every 100 families there were 32 sets of matched furniture, 55.28 refrigerators, 77.81 color TV sets, 85.37 washing ,machines, 11.74 VCRs, 5.18 sound systems , 1.82 air conditioners and 0.53 pianos.

The State Rural Social Economic Investigation Team's investigation also showed that for the first half of 1993 average per capita cash income for rural residents was 423 yuan, a seven percent increase over the same period in 1992. Average per capita life expenditure was 242.8 yuan and per capita production expenditure was 132.1 yuan. The surplus for each person was 48.1 yuan on the average.

All these figures showed a rise in consumer activity. But China Still remains population. It is due to such a large population that total consumer activity has always been so large and the market so active. And because of so many urban consumers, quality imported goods have always sold well and demand often exceeded supply.

The speed with which this market has grown lately, however, is what really deserves attention.

Since 1978 the construction of a free market in China, especially of a commodity market, has been gaining momentum. Throughout the country a network to market a complete range of commodities has taken shape. China's present commodity market exchange involves almost all the means of production and livelihood, incorporating national, regional and local markets.

Means of subsistence

 

Being a poor and backwards country, China for along time exerted great affords to guarantee the basic means of subsistence for its people, namely enough food to eat and clothes to keep warm.

In 1978, 30 years after the founding of the People's Republic, Chinese urban workers' average monthly income was only 51 yuan, a scant 20 yuan more on the average than in 1949. In rural areas the per capital income for each family was only 11 yuan.

At that time the streets were universally grey and dark blue, men and women, young and old wearing the same styles and the same color. A popular saying went "clothes are new for three years and old for three years. With patches, they last for another three years." Not only were the styles and colors monotonous, people's clothes were very few.

Because nobody had any money, people regarded wristwatches, bicycles and sewing machines, all worth a little more than 100 yuan, and even radios, worth less than 100 yuan, as luxury goods and gauges of a person's social status. These four objects were known for three decades as the "four big things in life." A survey taken in 1979 revealed that every 100 Chinese had only 8.5 wristwatches, 7.7 bicycles and 3. Sewing machines, concentrated mainly in the big cities Average ownership of TV sets for every one was the same brand.

Economic reforms brought about rapid development and made it possible to allocate considerable funds for the production of everyday necessities that could raise living standards. Within a few years, light, textile, food processing, seafood and family electronics industries developed substantially. In 1984 China paid out twice the amount of wages to its workers that it had paid six years before, resulting in an average increase of 600 yuan for each urban citizen. In 1984 peasant's average income also went up to 355 yuan, 1.5 times more than in 1978.

With this new money, people immediately bought what they could not purchase before under the old command economy. In the countryside there was a zeal to build houses and for young men to finally marry and settle down. In cities peo0ple targeted the new "four big articles" have come into being, a telephone, private apartment, car and piano. To meet citizens' needs, the state has made great efforts to develop service industries and import large amounts of consumer goods, mainly electric household appliances, to balance the market. At the end of the 1970s Japanese black-and-white TV sets, stereo and radio recorders made thei5r first appearance in China, followed by color TV sets and refrigerators.

Between 1978 and 1984 average grain consumption in China increased from 195.5 kg to 251.5 kg, pork consumption from 7.67kg to 13 kg, eggs from 2 kg to 3.9 kg, and edible oils from 1.6 kg to 4.7 kg. Styles also became more fashionable. Blue and grey clothes were cast aside in favour of new materials, styles and colors. Shops were stocked with various goods, Western style suits, leather shoes and stylish overcoats.

TV sets, washing machines, tape players, refrigerators, electric fans and cameras are now standard possessions in most households.

By 1987 workers' wages had increased 50% on the average to 1,459 yuan. For peasants the increase was 30% going up to 463 yuan. The average urban family's income also increased 50%, reaching 916 yuan for each individual. An increase in consumer activity naturally followed. In 1987 Chinese people's average per capital consumption expenses increased 47.7%, compared to 1984.

Larger income boosted markets. Between 1985 and 1987 China's total retail sales increased by 244.4 billion yuan, with an annual increase surpassing 80 billion yuan. The rate of growth slowed down during the next three years following an "economic readjustment."

When the economy recovered again, markets picked up where they left off. 1992 was a "consumer year." Though retail prices in China's cities went up by 10%, demand still surpassed supply in the consumer market, and people demanded a greater variety of goods. According to the statistics of the Information Prediction Center under the Ministry of Commerce, the 1992 annual volume of retail sales reached 1,805 billion yuan, a 15% increase over 1991.

Changes in consumer attitudes also helped shape the new market economy. Having guaranteed the basic needs of food and clothing, people with extra money turned to durable goods, and the sale of 'luxury goods' increased. In cities and towns people shifted their interests from TV sets and refrigerators to air conditioners, home phones, personal computers, fax machines, motorcycles, private cars, fashions and cosmetics. In more advanced parts of the countryside color TV sets, refrigerators, VCRs, washing machines, electric fans, motorcycles and cameras have all been consistent sellers. With a higher standard of living farmers began to seek better clothing and styles.

Figures show that in 1992 the average per capita income of China's urban residents was 2,000 yuan. For rural areas in east China it was 900 yuan, in the central part of the country over 700 yuan and in the west over 600 yuan. People from different social classes had different incomes to a certain degree. The increase in purchasing power spurred the consumer market to develop further, with the result that retail sales in 1992 increased 16 percent over 1992.