Government still central to the recovery (Mar 10)

Chinese consumers played a major role in supporting economic growth over the past year. Even at the depths of the global crisis, consumer spending barely slowed. But this was not entirely because of the fortitude of Chinese consumers. The government provided incentives through tax breaks, trade-in schemes and other support for them to keep spending. Recent data from large retailers show that a third of spending growth at the end of 2009 was on products benefiting from such support. The government has said it will extend these measures through 2010, but until consumer spending stands on its own feet, the sustainability of the broader recovery will remain in question.