Technology Innovation and the Possible Path to Expand Consumer Demand in the Context of China’s New Normal Policy

Abstract

In China, inadequate consumer demand is an outcome of traditional economic growth mode, which used to overly depend on exports and investment. Since 2008, western states adopted trade protectionism which hinders China’s exports, exacerbates inadequate consumer demand, even hampers economic growth further in China. Based on the change of international situation and domestic economic problems, Chinese government put forward new normal economic development policy. It focuses on structural adjustment in supply side reform. Seen from the economic history of western states, it proved that industrial structure upgrade once became a major driven force to expand consumer demand, which also became a pushing factor to their economic growth. While in the process of industrial structure adjustment, measures of technology innovation such as internet plus, industrie 4.0 are becoming major force to ease the tension between supply and demand which seemed to be an inherent crux imbedded in free market mechanism. In the end, some useful proposals for cultivating new technique and pushing them into social production and consumption.