China’s services sector is growing, but far too few Chinese are spending
So far the process of trying to shift the structure of the Chinese economy from manufacturing to services has received mixed results. Although it initially started out well, China is finding it hard to change the behaviour of its consumers, the majority of citizens would rather save their new found income than spend it. This is mainly due to Chinese citizens worrying about money for retirement and looking after their families. Therefore, China is addressing these concerns by creating a strong social safety net, such as pension plans and health care etc.  

Stephen Roach says the success of its economic restructuring will depend on boosting low levels of private consumption, and that can happen only with improvements to its social safety net