Social Sciences in China (Chinese Edition)

No. 10, 2024

The Code of Chinese Consumption from Cultural Perspective

(Abstract)

Wang Ning

As the roles of investment and export in promoting economic growth diminish, the role of household consumption in driving economic growth is increasingly prominent. However, the average consumption propensity and consumption rate of Chinese residents have remained consistently low. The consumption behavior of Chinese residents exhibits significant differences from Western consumers, necessitating a theoretical explanation. Exploring the motivations behind Chinese consumption and labor supply from a cultural perspective, Confucian dual-consumption ethics offers an effective explanatory path distinct from both Western Protestant and Romantic consumption ethics. Confucian dual-consumption ethics not only explains why Chinese residents exercise self-restraint (“frugality”) in daily consumption for the sake of project consumption, but also explains why residents expand their labor supply (“diligence”) in the process of modernization, thus promoting consumption-driven labor supply.