A popular notion among many market observers is that China over-invests and under-consumes, according to Morgan Stanley economists, based in Hong Kong. However, there seem to be two related but distinct concepts of ‘under-consumption' as far as China is concerned: domestic versus international dimensions. The domestic dimension of ‘under-consumption' is about the underperformance of household consumption relative to the rest of the economy: over the past decade or so, the growth of China's household consumption has been outpaced by fixed investment growth and exports and consumption as a percentage of GDP is low and has been on the decline.