This is CBS. I on the world. I'm John Batchel. The People's Republic of China, the crater that is the

property market. What is to be done? I welcome Gordon Chang at Gordon G. Chang, my colleague and

co-host and friend of many years watching the Chinese say again and again, the consumer market,

the consumer market. Why? The American economy, last time I remember a number, was 70% plus

consumers. We're the best shoppers. Europe comes in second. However, China's dream to diversify, which means not all export all the time,

is the consumer market, but something always happens. Something goes wrong. For example,

the property market collapses. And now I welcome Gordon to comment on this headline in the FT within hours. China unveils plan to, Gordon, to comment on this headline in the FT within hours.

China unveils plan to, quote, vigorously boost, end quote, weak consumption.

Subhead policymakers seek to spur demand as economy battles deflationary pressure.

Gordon, this is about as benign headline as I can imagine. What is the

consumer problem in China and what does it mean to vigorously boost? Good evening to you, Gordon.

Good evening, John. Consumption contributes somewhere between 38 to 39% of China's gross domestic product.

And that could very well be the lowest in the world, as opposed to, as you point out, 70% for the United States.

The problem is that the Chinese economy is structured to boost factory output.

It's based on investment.

Xi Jinping does not want consumption to be a major part of the Chinese economy.

And there are a number of reasons for that.

One of them is that you empower consumers.

You make citizens important.

And Xi Jinping clearly doesn't want to do that.

But also boosting consumption would

endanger the state banks and it would undermine his ability to create a war economy. So there are a lot

...