Devise mechanism for distribution of wealth

Following a 4 trillion yuan ($586 billion) investment package recently announced by the central government to curb a possible economic downturn, people have been expecting the top authorities to work out a similar stimulus plan in the realm of consumption. In the long run, the latter will prove more effective in bolstering a sustained economic development.

As the leading economic engines, investment, export and consumption always produce different influences on a country's economy. With more flexibility and elasticity, investment can indeed bring an immediate effect to the overall economy. It can boost domestic needs in the early period of its implementation.

However, a large-scale investment will unavoidably increase product supplies to the market in two or three years, which are yet to be digested by an expanded consumer demand.