Abstract:In this paper, the author analyzed the relation between GDP and household consumption using related data of China and 31 provinces. The author finds that in China, household consumption rate changes inversely with per capita GDP since 1978. Probably reasons lead to this phenomena include, household income increased slowly and unevenly, the macro- economics law of investment/GDP increase with the growth of per capita GDP, excessively rely on FDI in coastal area especially the mode of international subcontracting, etc.