Li Keqiang says 600 Million Chinese Citizens Earn Monthly Incomes of Just USD$140

[Hamartia Antidote]

http://www.chinabankingnews.com/202...citizens-earn-monthly-incomes-of-just-usd140/

Premier Li Keqiang has highlighted the huge number of Chinese citizens who continue to subsist on low incomes despite China’s economic transformation since the launch of reform and liberalisation.

At the close of China’s 2020 Two Sessions congressional meeting on 28 May Li said at a press conference that “600 million people have monthly incomes of just 1000 yuan” (approx. USD$140.6).

“We should put the protection of the basic living conditions of these disadvantaged groups in an extremely prominent position, said Li.

Chinese media seized upon Li’s remarks, given that data from the National Bureau of Statistics (NBS) indicates that China’s per capita disposable income was 30,733 yuan per year, or 2,561 yuan per month.

A report from The Beijing News indicates that Beijing and Shenzhen have the highest minimum wages in the country, at 2200 yuan per month, while Anhui was the lowest at 1180 yuan.

“The Premier’s remarks send a signal, that a large number of everyday people currently face employment and income problems,” said Li Shi (李实), a professor at Beijing Normal University and executive head of the China Institute for Income Distribution (中国收入分配研究院).

“The government must think of measures, and has measures for stabilising the economy and resolving the problems of everyday people.

“There is very strong correlation between per capita GDP and per capita disposable income, and incomes of under 1000 yuan are basically concentrated in the centre and west [of China].”

 

[Mista]

Li wasn't being exact though. He meant monthly household disposable income per household member.

https://www.caixinglobal.com/2020-0...ome-less-than-141-is-that-true-101564071.html

 

[Mista]

700,000 people (0.05%) make over $34,000/yr?

Monthly household disposable income per household member. The average household size is 3.1 people per household in China.

 

[Hamartia Antidote]

Monthly household disposable income per household member. The average household size is 3.1 people per household in China.

from your link

There are still some 600 million people whose monthly income is barely 1,000 yuan ($141) in China, Chinese Premier Li Keqiang said last month at a press conference following the annual session of the country’s top legislature.

Li’s remarks sparked heated discussion, with many doubting whether China really has so many people living on such low incomes.

The premier’s words are true. After analyzing a random sample of 70,000 families collected by the National Bureau of Statistics, our team at the China Institute for Income Distribution at Beijing Normal University found that nearly 42.9% of the people in the sample had a household monthly income per person of no more than 1,090 yuan [$154] in 2019.

If that statistic holds true nationwide, it would account for more than 599.9 million people.

Although China’s rapid economic growth in recent decades has propelled many people into high-income brackets, we mustn’t ignore the fact that the majority of the population fall into the low- or middle-income groups.

Many of them are still living on or near the bread line. They mostly remain out of sight and have few channels to make their voices heard. In that sense, they are society’s silent majority.

The income we talk about here is disposable income, not average salaries. Disposable income is the money left over after paying income tax, social insurance premiums and other essential fees. It reflects real individual and household livelihoods, and so is globally seen as one of the most important figures to judge a country’s development.

Who are the 600 million people Li spoke of? The survey showed that 75.6% of them live in rural areas, while 36.2% and 34.8% live in less-developed central or western China, respectively. They generally receive an average of about nine years of schooling — enough to finish middle school, but not to progress beyond that.

Low-income families support more elderly relatives and children than higher-income families. Nearly 39% of the 600 million are either older than 60 or younger than 16, a higher proportion than the equivalent for higher-income groups.

Some foreign politicians have claimed that China is no longer a developing country and should be treated as a developed nation. Their words confound some people’s minds in China, who make a misjudgement that China has become a high-income country or will become one soon.

China had an annual disposable income per capita of 30,733 yuan [$4341] last year. Americans, meanwhile, earned more than 10 times that figure.

That gap shows that China is still a typical developing country dominated by a low-income population. The pattern of income distribution in China is still far away from the classic olive shape, which has a large middle class and a short gap between rich and poor.

We have to remain clear-headed about how much Chinese people really earn and where China stands globally. Our status as the world’s largest developing country will not change for now.

Wan Haiyuan is a deputy dean of the China Institute for Income Distribution at Beijing Normal University. Meng Fanqiang is a postdoctoral researcher at the same institute.

This commentary has been edited for length and clarity.
Contact translator Guo Yingzhe (yingzheguo@caixin.com)

 

[flowerfan2020]

from your link

There are still some 600 million people whose monthly income is barely 1,000 yuan ($141) in China, Chinese Premier Li Keqiang said last month at a press conference following the annual session of the country’s top legislature.

Li’s remarks sparked heated discussion, with many doubting whether China really has so many people living on such low incomes.

The premier’s words are true. After analyzing a random sample of 70,000 families collected by the National Bureau of Statistics, our team at the China Institute for Income Distribution at Beijing Normal University found that nearly 42.9% of the people in the sample had a household monthly income per person of no more than 1,090 yuan [$154] in 2019.

If that statistic holds true nationwide, it would account for more than 599.9 million people.

Although China’s rapid economic growth in recent decades has propelled many people into high-income brackets, we mustn’t ignore the fact that the majority of the population fall into the low- or middle-income groups.

Many of them are still living on or near the bread line. They mostly remain out of sight and have few channels to make their voices heard. In that sense, they are society’s silent majority.

The income we talk about here is disposable income, not average salaries. Disposable income is the money left over after paying income tax, social insurance premiums and other essential fees. It reflects real individual and household livelihoods, and so is globally seen as one of the most important figures to judge a country’s development.

Who are the 600 million people Li spoke of? The survey showed that 75.6% of them live in rural areas, while 36.2% and 34.8% live in less-developed central or western China, respectively. They generally receive an average of about nine years of schooling — enough to finish middle school, but not to progress beyond that.

Low-income families support more elderly relatives and children than higher-income families. Nearly 39% of the 600 million are either older than 60 or younger than 16, a higher proportion than the equivalent for higher-income groups.

Some foreign politicians have claimed that China is no longer a developing country and should be treated as a developed nation. Their words confound some people’s minds in China, who make a misjudgement that China has become a high-income country or will become one soon.

China had an annual disposable income per capita of 30,733 yuan [$4341] last year. Americans, meanwhile, earned more than 10 times that figure.

That gap shows that China is still a typical developing country dominated by a low-income population. The pattern of income distribution in China is still far away from the classic olive shape, which has a large middle class and a short gap between rich and poor.

We have to remain clear-headed about how much Chinese people really earn and where China stands globally. Our status as the world’s largest developing country will not change for now.

Wan Haiyuan is a deputy dean of the China Institute for Income Distribution at Beijing Normal University. Meng Fanqiang is a postdoctoral researcher at the same institute.

This commentary has been edited for length and clarity.
Contact translator Guo Yingzhe (yingzheguo@caixin.com)

China always claiming "We are still developing country". Is your president trying to claim China is developed country.

 

[Hamartia Antidote]

China always claiming "We are still developing country". Is your president trying to claim China is developed country.

Chinese here on PDF keep saying people in China have a high standard of living but you ignore the vast majority of your population who simply don't.

The fact is there are many farmers who daily get behind their oxen and work the fields.

 

[Kai Liu]

Very misleading article.
The 1000 cny (141usd) is the per capita monthly disposable income, which makes it 4000 cny or 560 usd for a household of 4. And remember, that is dispensable income, which means tax, pension savings, etc, are all excluded. And a lot of them are old folks living in the countryside with their own house, feed stocks and grow crops, and living expenses are minimal or negligible.
There is a wealth gap for sure, as the national average is 30000 cny or 4235 usd per year per capita, which makes 120,000 cny or ~17,000 USD for a house hold of 4 on average, which means there are a lot of high income household (much higher than the average) and remember GDP per capita does NOT equal to income per capita. This again, is the disposable income. This agrees with our average salary for a work force of 2 per household:
https://tradingeconomics.com/country-list/wages

 

[flowerfan2020]

Chinese here on PDF keep saying people in China have a high standard of living but you ignore the vast majority of your population who simply don't.

The fact is there are many farmers who daily get behind their oxen and work the fields.

China still need more time to growth. Most of City in the east are much more developed than the west side. But the Situation is getting better since China already planning to develop the west.

 

[vi-va]

Fake news. What he means include elders and children.

 

[+4vsgorillas-Apebane]

On purchasing power basis 1000 yuan goes quite a but farther.

Still a long way to go though and many more policy changes to achieve national rejuvenation.

 

[Viva_Viet]

Fake news. What he means include elders and children.

Okay, plz leave the "developing countries " group.

Dont take food from starving African kids when all Cnese have good lives

 

[hualushui]

from your link

There are still some 600 million people whose monthly income is barely 1,000 yuan ($141) in China, Chinese Premier Li Keqiang said last month at a press conference following the annual session of the country’s top legislature.

Li’s remarks sparked heated discussion, with many doubting whether China really has so many people living on such low incomes.

The premier’s words are true. After analyzing a random sample of 70,000 families collected by the National Bureau of Statistics, our team at the China Institute for Income Distribution at Beijing Normal University found that nearly 42.9% of the people in the sample had a household monthly income per person of no more than 1,090 yuan [$154] in 2019.

If that statistic holds true nationwide, it would account for more than 599.9 million people.

Although China’s rapid economic growth in recent decades has propelled many people into high-income brackets, we mustn’t ignore the fact that the majority of the population fall into the low- or middle-income groups.

Many of them are still living on or near the bread line. They mostly remain out of sight and have few channels to make their voices heard. In that sense, they are society’s silent majority.

The income we talk about here is disposable income, not average salaries. Disposable income is the money left over after paying income tax, social insurance premiums and other essential fees. It reflects real individual and household livelihoods, and so is globally seen as one of the most important figures to judge a country’s development.

Who are the 600 million people Li spoke of? The survey showed that 75.6% of them live in rural areas, while 36.2% and 34.8% live in less-developed central or western China, respectively. They generally receive an average of about nine years of schooling — enough to finish middle school, but not to progress beyond that.

Low-income families support more elderly relatives and children than higher-income families. Nearly 39% of the 600 million are either older than 60 or younger than 16, a higher proportion than the equivalent for higher-income groups.

Some foreign politicians have claimed that China is no longer a developing country and should be treated as a developed nation. Their words confound some people’s minds in China, who make a misjudgement that China has become a high-income country or will become one soon.

China had an annual disposable income per capita of 30,733 yuan [$4341] last year. Americans, meanwhile, earned more than 10 times that figure.

That gap shows that China is still a typical developing country dominated by a low-income population. The pattern of income distribution in China is still far away from the classic olive shape, which has a large middle class and a short gap between rich and poor.

We have to remain clear-headed about how much Chinese people really earn and where China stands globally. Our status as the world’s largest developing country will not change for now.

Wan Haiyuan is a deputy dean of the China Institute for Income Distribution at Beijing Normal University. Meng Fanqiang is a postdoctoral researcher at the same institute.

This commentary has been edited for length and clarity.
Contact translator Guo Yingzhe (yingzheguo@caixin.com)

The labor participation rate in the United States is 60%, that is, 40% of Americans, 140 million, do not work and have no income. Their monthly income is less than $100

 

[beijingwalker]

Li keqiang refers to "average disposable income", money left after all must pay bills and expenditures being deducted, in this case, Americans income could be negative

"李克强总理引用的数据，来自北京师范大学收入分配研究院的报告。根据统计，在月收入低于1000元的群体中，来自农村的比例高达75.6%，远远高于其他收入群体.。从地区来看，这6亿人分布在中部和西部的比重为36.2%和34.8%。

北师大的数据，跟国家统计局不一样。国家统计局经常采用的是平均工资收入。北师大采用的是家庭人均可支配收入。人均可支配收入，是指扣除所得税和各种社会保险费等之外，实际可以用于支配的收入。这个指标，能反映家庭收入中，用于支付衣食住行等必备开支，用于教育医疗与养老负担的消费能力。可支配收入，比较客观反映真实民生问题和生活状态，是定性判断一个国家发展阶段的最为重要的指标。这个可支配收入指标，是全球通用的对于一个国家发展状态的评估指标，经常比GDP更具有现实意义。"

 

[Mk-313]

Li keqiang refers to "average disposable income", money left after all must pay bills and expenditures being deducted, in this case, Americans income could be negative

uhhh... NO. avergae disposable income means your income minus taxes. you might wana look up the definition of the subject youre teaching others the meaning of

"李克强总理引用的数据，来自北京师范大学收入分配研究院的报告。根据统计，在月收入低于1000元的群体中，来自农村的比例高达75.6%，远远高于其他收入群体.。从地区来看，这6亿人分布在中部和西部的比重为36.2%和34.8%。

北师大的数据，跟国家统计局不一样。国家统计局经常采用的是平均工资收入。北师大采用的是家庭人均可支配收入。人均可支配收入，是指扣除所得税和各种社会保险费等之外，实际可以用于支配的收入。这个指标，能反映家庭收入中，用于支付衣食住行等必备开支，用于教育医疗与养老负担的消费能力。可支配收入，比较客观反映真实民生问题和生活状态，是定性判断一个国家发展阶段的最为重要的指标。这个可支配收入指标，是全球通用的对于一个国家发展状态的评估指标，经常比GDP更具有现实意义。"

Its $50,000 for the US. thats how we can afford to keep buying your junk and is the largest importers of your crap
https://data.oecd.org/hha/household-disposable-income.htm

 

[beijingwalker]

uhhh... NO. avergae disposable income means your income minus taxes. you might wana look up the definition of the subject youre teaching others the meaning of

"人均可支配收入，是指扣除所得税和各种社会保险费等之外" Meaning after taxes and all various social insurances

Its $50,000 for the US. thats how we can afford to keep buying your junk and is the largest importers of your crap
https://data.oecd.org/hha/household-disposable-income.htm

Really?

Some 40% of Americans would struggle to come up with even $400 to pay for an unexpected bill.

If — or, more likely, when — they’re confronted with such an expense, they’d probably have to sell something or go into debt. The now oft-cited figure comes from the Federal Reserve’s 2018 Survey of Household Economics and Decision Making, in which some 12,000 households were asked about their financial well-being.