ABSTRACT
Since the initiation of the reform and opening-up policies in 1979, China’s economy has been developing at an unprecedented speed. China has already become one of the most important economic powers of the world and, on the whole, the Chinese people have achieved a comparatively comfortable living standard. Their income level has improved notably compared with that of more than 20 years ago. Statistics show that the per-capita net income in rural areas has increased from 134 yuan in 1978 to 2,622 yuan in 2003 with an average annual increase of 7.1%, while the per-capita disposable income in urban areas has grown from 343 yuan to 8,472 yuan over the same period with an average annual increase of 6.8%. Correspondingly, the consumption pattern of the Chinese people has shifted from concern over food and clothing to a more discretionary focus on improving housing and transportation. Chinese residents have begun to seek new forms of leisure and to enjoy recreational tours. Nationwide, the Engel Coefficient (referring to the proportion of total consumption expenditures spent on food) has also dropped: from 57.5% in 1978 to 37.1% in 2003 for urban residents and from 67.7% to 45.6% for rural residents.
