Moderately prosperous China brings opportunities to world economy (2)

With surging discretionary income, this expanded army of middle-class Chinese will carry out more aspiration-driven spending, including the buying of globally branded luxury goods.

According to the World Luxury Association, by the end of 2011, Chinese consumers' total spending on luxury market -- excluding the buying of private planes, yachts and limousines -- has reached 12.6 billion U.S. dollars, making China the world's largest luxury-goods consumer.

The Hong Kong-based investment bank CLSA Asia-Pacific Markets predicted earlier this year that Chinese consumers will buy 44 percent of luxury goods sold in the world by 2020, up from 15 percent in 2010.

Meanwhile, the CPC also promised to improve its social security system as it leads China forward. An ameliorated social safety net would also help to reduce the worries among ordinary Chinese for flaring costs on medicine and education, thus prompting them to spend more.

The booming purchasing power of the Chinese people would mean growing profits for both retailers and manufacturers in and beyond China, which in turn would further revive the slack global economic growth.

A moderately prosperous China will also mean a fairer and well-regulated market, and an improved financial system for foreign companies seeking business opportunities in the country.

Furthermore, as China strives to accelerate its urbanization process, its growing demand for energy and raw materials will also be a big boon to the world's sluggish commodity market.

According to a 2012 International Monetary Fund working paper, entitled China's Impact on World Commodity Markets, China's consumption in 2010 accounted for about 20 percent of non-renewable resources, such as metal ores, 23 percent of major agricultural crops, and 40 percent of base metals.

The paper concluded that the global commodity market developments will increasingly be determined by China.

The crisis-stricken world economy desperately needs engines of growth, and fortunately, a moderately prosperous China can provide that impetus.