Middle Class in China

Many factors such as effective financial, social and political policies by Chinese government helped to increase the level of living in China. However, the biggest factor here is globalisation which allowed replacing millions of workers all over the world with Chinese labor. As a result, the middle class in China is flourishing and becoming the biggest winner of globalisation.

Globalisation is one of the most complicated issues to discuss. Different people have different opinions. Who is winner and who is losser? In many cases, it is hard to identify it. However, in case of middle class in China, it is not hard to understand that they are winners of globalisation. According to Branco Milanovic, until now there was no single source to check this information but with the help of a database of household surveys which were made by the World Bank, we can identify who the real winners of globalisation are. Some 200 million Chinese are among the biggest gainers in the global income distribution.

Image
In 1988, an average person in China was richer than only 10% of world population but now a person at that same position is richer than one-half of the world’s population. By 2022, approximately more than 75% of China’s urban consumers will earn from $9,000 to $34,000 a year. In terms of purchasing-power-parity, it is between the average income of Brazil and Italy. In 2000, just 4% of Chinese households had this level, but it increased by 68% in 2012. It is expected, that in this decade the middle class will continue to expand and it will be done with help of labor-market, policy initiatives that allow increasing wages, financial reforms that increase employment and income growth, and the rising role of private enterprise, which has to encourage productivity. As long as all of these goals will be achieved, the urban-household income will at least double by 2022. As it can be seen, the middle class in China is growing and becoming richer. From year to year the number of people who are able to call themselves members of the middle class with all attributes of this social status will continue to grow and clearly illustrate the good side of globalisation. All the factors that were mentioned before show, that the Chinese middle class is one of the winners of globalisation and it will probably prove it even more in the future.

References:
http://www.theglobalist.com/the-real-winners-and-losers-of-globalization/

http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class

Adil Zhaukov

Dubai Campus

 

 

 

 

Advertisements

One thought on “Middle Class in China

  1. I totally agree with the fact, that the middle class in China is becoming the biggest winner of globalization, the rise of the world’s largest middle class in China is clear, especially there are a lot of higher middle class in larger cities where incomes are increasing much faster than in small cities. Apart from that, Chinese middle class created a lot of opportunities for consumer sectors, there are many companies that are benefiting from the middle class and doing great businesses. But in some parts of China a middle class life is becoming even more expensive such as property, electronics and other things, that is why a desire for better and higher quality of life among them is becoming much stronger and mainly in large cities. As you mentioned, they are trying to increase urban-household income by 2022. How do you think then, what will happen to those who live in rural areas while the middle class is concentrated only in urban areas? Madina Orazakynova (Dubai Campus)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s