China's consumers earn fast, spend slowly.

"China has a preponderance of consumers whose income is growing more rapidly than their propensity to spend." This is one of the major conclusions of a February 15, 2007 study published by the Chicago-based market research firm Leo J. Shapiro Associates. The study cautioned that the consumers studied were China's 300-million urban consumers, approximately only one fourth of the country's population.

Specifically, the Shapiro firm defined "consumerist China" as urban residents with landline phones. The population segment accounts for 40 percent to 45 percent of consumer spending in China, and is equal to the total population of the United States (US). The study excluded China's northwestern provinces and autonomous regions (such as Hong Kong). The study compared Chinese consumers with US consumers questioning 1,841 total respondents, about half in each country.

Chinese consumers, by a factor of over three to one, said they had "more than enough money coming in than they need to live comfortably and securely." The statistics were: Chinese consumers 45 percent, US consumers 14 percent.

The study further pointed out, "Although Chinese consumerists' perception of abundance is partially explained by the low cost of living in China, a more significant reason is their rapid income growth."