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The brakes on China's consumption

Overview

China's emerging middle class is not all it is cracked up to be. While it is growing steadily in urban areas and has boosted demand for goods like air conditioners, colour televisions and cameras, the future rate of expansion is likely to be limited. While it is accepted by the Communist Party, it will not be helped by government policies.

Though large in absolute numbers compared to other countries, the impact of the middle class on consumption has to be viewed in the context of...

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