News Digest: Mind the (Wealth) Gap

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China’s rapid economic development has created relative riches for the urban elite, but has left behind the majority of the rural population – average urban incomes last year were RMB9,400 (US$1,164) while rural incomes were just RMB3,000 (US$372). This wealth gap increasingly presents the risk of social instability, and official emphasis is now being placed on solving social tensions, and associated issues such as corruption. Tax breaks for the lowest earners have also been announced – people earning under RMB1,600 a month (US$198) will no longer need to pay income tax.

See related stories:

    Hu sets out blueprint for China’s future
    Christian Science Monitor – USA
    … that President Hu Jintao has consolidated his position as leader of Asia’s largest power – a move that more formally ushers in the “Hu era” in China, a period …

    China’s wealth gap reaching critical level
    San Diego Union Tribune – United States
    GUANGZHOU, China — Eight years ago, Chen Hua thought she’d put poverty behind her when she left her remote, mountain village in Sichuan province for a …

    China cuts income tax for low wage earners
    Malaysia Star – Malaysia
    BEIJING: China’s legislature agreed Saturday to cut income taxes on the country’s poorest workers amid official concern that the country’s growing gap between …

(Updated 24/10/05)

One Response to “News Digest: Mind the (Wealth) Gap”

  1. Archive » To Get Rich Is Glorious. But Not Harmonious.| China Business Blog Says:

    […] sailing for the rich in China, at least when they are under the spotlight. The growing “wealth gap” has become a hot political potato, and the government’s desire to create a “ha […]

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