expat china want to know about life in Beijig and chinese middle class and china economy growth
Second in our series of articles about Chinese middle-class, a quick overlook of another indicator of being part of Chinese middle-class: disposable income.
During the last decade, working Chinese people average income has increased a lot. In 2010, the average annual income per employee amounted to 42,452 yuans (around $ 6,673) inside State-owned companies and 24,556 yuans ($ 3,860) inside private companies. Compared with the average salary of $ 39,959 in 2010, there is still a long way to go.
However, China is a country where reality is not accurately reflected with average indicators. Income gaps are huge inside Chinese society; a good illustration of this phenomenon is the total sales value of luxury goods in China: 25 billion yuan every year. A Chinese privileged class has a colossal disposable income when a very large part of the population has almost no money to spend. The Chinese middle class is in-between, but its disposable income is still limited.
14 million households, around 6% of the total population, are considered to have enough income to take part in the Chinese interior market development. These are the households with an annual disposable income comprised between 16,000 and 34,000 yuans.
In 2020, according to projections, the number of such households could reach 167 million, in the meantime 120 million households will have an average disposable income comprised between 6,000 and 16,000 yuans.
This situation is likely to lead to a massive growth of Retail in China.
What does these figures inspire you ?
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