In the early decades after the communist state was founded in 1949, incomes were low and roughly the same. However, according to a newly conducted investigation, economic reforms over the past 20 years have created a substantial class of very wealthy Chinese, with more than 5.3 million families boasting annual incomes of US$6,000 or more. The average annual urban income is about US$600, and the average earned by rural residents is about US$230. Private businessmen and managers make up the core of the newly affluent. Others include
| GDP per Capita (US$) | |||||
| Country | 1975 | 1980 | 1985 | 1990 | 1998 |
| China | 138 | 168 | 261 | 349 | 727 |
| United States | 19,364 | 21,529 | 23,200 | 25,363 | 29,683 |
| Japan | 23,296 | 27,672 | 31,588 | 38,713 | 42,081 |
| Russia | 2,555 | 3,654 | 3,463 | 3,668 | 2,138 |
| SOURCE: United Nations. Human Development Report 2000; Trends in human development and per capita income. | |||||
| Distribution of Income or Consumption by Percentage Share: China | |
| Lowest 10% | 2.4 |
| Lowest 20% | 5.9 |
| Second 20% | 10.2 |
| Third 20% | 15.1 |
| Fourth 20% | 22.2 |
| Highest 20% | 46.6 |
| Highest 10% | 30.4 |
| Survey year: 1998 | |
| Note: This information refers to income shares by percentiles of the population and is ranked by per capita income. | |
| SOURCE: 2000 World Development Indicators [CD-ROM]. | |
scientists who own patents, teachers who tutor privately, consultants, securities traders, entertainers or advertising executives. There are roughly 30 million Chinese considered to be well off, which makes only a small fraction of China's population of 1.2 billion. Heavily concentrated in major cities such as Beijing and Shanghai, the affluent Chinese represent a newly emerging market for all sorts of luxuries. China is counting on the desire of the well-to-do for better housing and consumer goods to help keep the economy growing.