China - Poverty and wealth

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.