Nanfang Weekend published an article on sluggish domestic demand in the Chinese economy. According to the article, if one produces the value of 100 yuan, 45.4 yuan would go to one’s own pocket, while 23.1 would be State’s fiscal revenue and 31.5 would go to capital and inventory of companies. In the past 30 years, per capita income has been increasing. But the GDP growth rate exceeds that of the per capita income, leading to weak domestic demand, concluded the article.
Source: Nanfang Weekend, December 18, 2008