China's economic growth has been gradually losing steam while export orders from the US and EU, its major trading partners, dwindle.
Given current economic conditions in much of the developed Western world, China can no longer count on exports to support its continued growth over the long term.
At this point in time, China must increase domestic consumption if it wants to continue to grow its economy.
To achieve this goal, I recommend the government focus more attention on developing its western and central regions.
Compared with China's more urbanized and prosperous coastal areas, these regions have a much higher potential for growth.
While living standards and incomes in these areas are still low compared to the coast, if the government can raise wages there, it could easily unleash a huge wave of consumer demand and spending, and propel China's economic growth for many years to come.
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