The Importance of China's Rising Middle Class

In a recent report, China's leading think tank estimated that the country's middle class could constitute nearly 8 percent of the country's population by the end of 2011. A middle class is important for the preservation of social cohesion and remains a source of domestic consumption to fuel economic growth. Though Beijing has traditionally been more concerned with the support of the elites who form the basis of the Party's power, it must be wary of the financial burdens that could diminish its middle class and threaten economic growth and social stability.