The Chinese model for economic growth is further transforming. While the rise in output was heavily based on investment and export activities in recent decades, private consumption is expected to become a driver for growth in the period ahead. However, the conditions for higher consumer demand of private households are not optimal: The savings rate is high, particularly driven by the low level of social security and highly regulated financial markets. Up to now, it is quite unclear whether the transformation towards a consumer society can be handled without major frictions.