Consumer spending is not on the cards

The world, teetering on the edge of another financial crisis, needs China's consumers to save less and spend more. China needs its consumers to drive up domestic demand so it can reduce its heavy reliance on exports to keep fuelling economic growth, and Western countries want more business from China.

Unfortunately, China's consumers are not playing ball. They are still diligent savers and cautious spenders, as evidenced by the country's consumption to gross domestic product ratio of 36 percent - only half that of the US and about two-thirds the figure for Europe.

Bank executives have been optimistic that credit cards will work their magic on Chinese consumers, just as they have on consumers elsewhere. With about 230 million issued by 2010, they have been salivating at the prospect of tens of millions more consumers adding credit cards to their wallets.