In a recent interview, Li Shi, the director of the Institute for Sharing and Development at Zhejiang University, mentioned that there are approximately 900 million people in China belonging to the low-income group. This statement echoes a previous claim made by economic scholar Li Xunlei, who referenced research data suggesting that around 9.64 billion people in China had a monthly income of 2000 RMB or less, leading to the removal of his article last year.
According to a report from mainland China’s official media outlet, “Economic Observer,” on December 7th, Li Shi estimated that the number of people in China who have not yet reached the middle-income standard is roughly 900 million.
Li Shi pointed out that among these 900 million individuals, there is a significant income disparity. While some groups have incomes approaching the middle-income level, others are in relatively poor conditions.
He emphasized the importance of ensuring that the wage growth for low-income individuals surpasses the overall wage growth in society to narrow the income gap. Li Shi cautioned against direct government intervention in wage increases for employees of private enterprises, as it could disrupt market mechanisms and lead to adverse consequences.
Researcher Wang Guochen from the Institute of Economics at the Taiwan Institute of Economic Research stated to Radio Free Asia that this approach is not contradictory to China’s “poverty alleviation” efforts, as the poverty standard used by the Chinese Communist government is much lower.
Despite the Chinese Communist Party’s emphasis on having “alleviated poverty,” substantial wealth disparity remains. The gap between rich and poor continues to widen when comparing the average and median incomes reported by the National Bureau of Statistics of China.
The figure of “approximately 900 million people in the low-income group” is not a new revelation. In a report by “First Financial Daily” at the end of last year, it was noted that the Vice Chairman of the China Chief Economist Forum, Li Xunlei, referenced a study released by the China Institute for Income Distribution Research of Beijing Normal University in 2021, indicating that around 9.64 billion individuals in China had a monthly income below 2000 RMB.
Li Xunlei, who authored the report, serves as the Chief Economist at Zhongtai Securities. Former Premier of the Chinese Communist Party, Li Keqiang, touched upon the issue of 600 million people earning only 1000 RMB per month during a press conference after the National People’s Congress on May 28, 2020, sparking widespread social discussion. The National Bureau of Statistics of China confirmed that such income levels were reflected in their official survey data. In 2019, China indeed had 610 million people with an average monthly income of less than 1000 RMB.