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prospect of chinese economy after the financial crisis from the perspective of the rural consumption marketfinance 2金晓燕1141213with the robust growth after the crisis, more and more transnational countries look good forward to chinese market and eager to invest in chinas market. after the increasingly saturated city market, some are keeping an eye on rural market.soon after the crisis in 2008, chinese government enacted a policy that rural families could buy specified electrical appliances including color televisions, refrigerators, washing machine at the price 13% lower than those in cities. it is a preferential policy for the farmers and a signal to explore the potential of rural market vigorously. since the introduction of the reform and opening programs, we have quickened our pace of development. before the crisis, chinas economic growth had been largely driven by fixed-assets investment and export demands, while consumption had been relatively weak. however, continued investment-driven growth would only result in excess supply and put an unsupportable burden on chinas resource base and natural environment. investment,consumptionandnetexportarethethreeessential factors todriveeconomicdevelopments. as investment does harm to the environment, china should depend on consumption to furtheraccelerationofeconomic growth. according to the research, when consumption increases by 1%, gdp will increase more than 0.8% in china, which is much greater than the growth rate of investment in the economic. particularly, many peoplehave beenpaying more attention to the ruralmarketwhich hasgreatconsumptivepotential. china is a large agricultural country with the peasants account for over 70% of the whole population. specifically, china has 700million peasants, which is more than twice of the population in american. the ruralconsumermarketisthe widestpotentialconsumermarketin china.its exploitation and development plays a pivotal role in the rapid and healthy market development. getting rural market of consumer goods in gear will make our countrys economic development obtain strong and lasting support. however, developing rural market still has a long way to go and it wont be easy. on the one hand, the development of rural market has been hidden by lower level of rural residents consumption. since the social security is still in progress, peasants have to rely on themselves to save money for pension. as a result, some peasants dont dare to consume because they have to save money for future needs, especially peasants in poor areas. on the other hand, most peasants put the price at first and some even ignore the quality of product, so high-end products dont have access to the rural market. peasants advocate frugality and lack of entertainments, health care and other high quality consumptions. at present, the level of rural residents is still on the low side. some of them still have a long distant away from the well-off consumption. considering the current consumption status, government must enhance the farmers income and well-being in order to development and promote economic growth. the policy of sending home appliances to the countries is in part effective to enlarge domestic rural consumption demand, but it is invalid in the long run. only when the rural residents income increases, will their consumption increases. for example, the fast increasing of chinas elderly population requires our country to reform the existing rural pension system, so that old people will dare to consume because they are ensured after they get older.although rural consump
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