In an attempt to entice consumers to save less and spend more, China has focused on perfecting its social security system, reforming taxation and dividend-sharing proportion between the government and state-owned enterprises. Liu Yuhui, Director of the China Economy Appraisal and Rating Center at the Institute of Finance and Banking, the Chinese Academy of Social Sciences, offered his insights in an Economic Observer article. Edited excerpts follow In an attempt to entice consumers to save less and spend more, China has focused on perfecting its social security system, reforming taxation and dividend-sharing proportion between the government and state-owned enterprises. Liu Yuhui, Director of the China Economy Appraisal and Rating Center at the Institute of Finance and Banking, the Chinese Academy of Social Sciences, offered his insights in an Economic Observer article. Edited excerpts follow