The consumption gap between rural and urban markets has been narrowing in east China's Shandong Province and dropped to 2.8 percent in 2004, in comparison with 3.1 percent in 2003.

According to the provincial bureau of statistics, retail sales of consumer goods in rural markets below county level rose by 11.8percent in Shandong last year. Rural markets have been flourishing ever since 2000.

The consumption in rural markets increased by 11.8 percent in 2004, which stood at 8.8 percent in 2000.

There remains huge potential to tap the rural markets, particularly those of the social consumer goods, the local source said.

Officials from the provincial statistics bureau urged businesses to produce more consumer products catering to rural residents, develop "commercial circulating networks," and chain super markets in the rural areas.

Source: Xinhua