It's a momentous historical change of consumption institutions from controlling consumption to stimulating consumption in China. Based on the principles of new institutional economics and population economics, this paper explains the effects of demographic transition on the consumption institutional change in China, through the rapid declining population growth, the age structural change and its population dividend. In the primary stage, which is dominant by the decreasing of mortality, the demographic transition strengthened the controlling consumption institutions. Whereas, in the present stage, which is dominant by the declining of fertility rate, the interaction of demographic transition and rapid economic growth overlapping under opening and reform causes old consumption institutions unequilibrium. The empirical study points out that the inevitability of China's final consumption ratio diminishing in the process of demographic transition, and the essentiality of maintaining optimum population growth instead of zero or negative growth rate.
