The making of China's consumer society

China's transformation from a manufacturing-driven and export-led economy to one underpinned by services and domestic consumption is firmly underway. And that's good news not just for China, but also for the future of the global economy.

The 2016-17 edition of the Blue Book of China's Commercial Sector by Fung Business Intelligence and the Chinese Academy of Social Sciences maps the change. China's retail markets reached 30 trillion yuan ($4.6 trillion) in 2015, after more than a decade of double-digit growth. Household consumption has begun to climb, even as the pace of investment has fallen, and now exceeds 6 percent of GDP. Though the consumption growth rate has slowed to 10.7 percent, the Blue Book projects that China's domestic market may reach 50 trillion yuan by 2020.

A key driver of this transformation has been internet technology. Building on heavy investments in public infrastructure, such as ports, airports, roads, railways, and telecommunications, the internet is now expanding rapidly the range of choices available to Chinese consumers, while lowering costs and accelerating delivery.