Deficiencies of food and daily necessities are a thing of the
past in today's China and consumption patterns have also undergone
radical change; as expenses for food, clothing and basics fall,
China's consumers today are spending their money on housing,
transportation, telecommunications, medical and health care,
culture, education and entertainment, leisure and tourism.
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The Engel coefficient (food expenses as a percentage of total
consumer spending) among urban residents dropped from 57.5 percent
in 1978 to 37.7 percent in 2004; among rural residents it dropped
from 67.7 to 47.2 percent. Urban residents are shopping at
supermarkets as well stocked as any in the Western world and dining
out at fine restaurants. In rural areas, people are less dependent
on grains and are eating more eggs and meat. Affordable, ready-made
clothes are available everywhere with people dressing
smartly.
Housing, transportation and telecommunications have also seen vast
improvement.? More and better-quality consumer goods;
big-screen-high-definition color TVs, fridge-freezers, and
automatic washing machines have become the urban resident's first
choice when replacing old household appliances. Air conditioners,
home entertainment units, water heaters and furniture also are
popular consumer items; cars, video cameras, computers and exercise
equipment are becoming commonplace in the average home. In 2004 car
purchases increased by 58 percent; of every 100 cars sold, at least
60 were bought by individuals, and in big cities the rate can reach
80 percent. Consumer spending on housing has also kept growing,
annual figures showing a 30.4 percent increase in 2004.
