No.10 China’s Income Gap

25 Apr

At first, please have a overview from a CNN report.

Just have a look some examples:

With the same two workers who are state-owned enterprise workers, the one who is working in electricity meter reading get 100,000 RMB (about 9,900 pounds) per year but he other one who is a steel worker can only get 20,000 RMB (about 1980 pounds) per year. Chen Jiulin, who is a general state-owned enterprises manager(China Aviation Oil), his annual pay is 20,000,000 RMB (about 1,980,000 pounds).

With massive land, abundant natural resources,Chinahas a huge cheap labor, low taxation and a growing consumer market.InChina’s first stage of economic development, the nation’s success derived from cheap labor and low prices. China’s workers are still living in poverty even through the country’s economy is developing fast. Probably they are just sacrificial lambs for the economic achievement. The article in the newspaper, run by the Party School of the Communist Party of China Central Committee, says the rich population consisted of private business owners got rich due to their talent and diligence, but those who gained wealth through collusion with officials in power-for-money deals or because they happen to work in monopoly companies or because they stole state assets.

(available at: http://www.google.co.uk/imgres?imgurl=http://coto2.files.wordpress.com/2010/09/income_gap1.gif&imgrefurl=https://coto2.wordpress.com/tag/income-gap/&usg=__yduFwRFLT9y_qAwkYPMEH9jJmkE=&h=496&w=325&sz=29&hl=zh-CN&start=0&sig2=ds4XMoitzYDG0H-iPngksw&zoom=1&tbnid=1zxwO5A4M9wF4M:&tbnh=147&tbnw=96&ei=X860Tdz_MIGO8gOlhomWDA&prev=/images%3Fq%3Dincome%2Bgap%26hl%3Dzh-CN%26biw%3D1225%26bih%3D605%26gbv%3D2%26tbm%3Disch&itbs=1&iact=rc&dur=328&page=1&ndsp=18&ved=1t:429,r:1,s:0&tx=87&ty=59)

However, is there any necessary change for the situation?

A Chinese professor thinks that the key point of income gap is monopoly and corruption. These two elements directly lead to the income gap. Yes, all of this income gap stuff is depressing, insofar as it tells us about the problems we are currently facing. We are hoping the government to take some effective measures to improve society and ease the income gap.

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