AMPONTAN

Japan from the inside out

China’s income divide: More canyon than gap

Posted by ampontan on Tuesday, February 26, 2008

IT’S ALWAYS A GOOD IDEA to take with a grain of salt the sort of journalism in which a reporter encourages the reader to extrapolate ideas about large groups of people based on interviews with a handful of individuals. Are the examples selected illustrative of a larger truth, or were they cherry-picked to promote an agenda or a particular point of view?

These questions are compounded when the subject matter is China, a country of 1.3 billion people. Yet, whether Max Hastings, columnist for Britain’s Daily Mail, is playing it straight or playing a riff on reality, his recent articles about contemporary conditions in the country are worth reading.

Of particular interest are two pieces that present the contrast between China’s dirt poor and glorious rich. Here’s a sample from the first:

…if you think you know what poverty means, you have not met Han Yuming. He is a citizen of a China which lives a century behind the new society of skyscrapers, teeming factories and highways.

He is 62 years old, earns less than £20 a month, and lives in a hut – no, let us be honest and call it a hovel – in the mountains north-west of Beijing, less than two hours’ drive from the glittering Olympic stadiums soon to be unveiled before the world.

The yawning chasm between rich and poor is the aspect of “new China” which most frightens its government and elite. Beyond the swathe of prosperity in the east of the country live 900 million peasants who possess no share in China’s wealth, and have scant hope of gaining one.

Some 135 million people eke out an existence on less than 50p a day; Yuming is one 500 million who have less than £1 a day.

And one from the second:

A Beijing businesswoman, whom to spare her blushes we shall call Hui, gave me a guided tour of her eighth floor palace.

The apartment is a riot of gilding; purple and green carpets; a library packed with new, unread and probably unreadable books; electronic gadgetry; pools of giant goldfish; vast gold mirrors; imperial-sized beds and sofas deep enough to drown in.

The dining-room table is permanently laid for eight. The massive sunken bath and Jacuzzi look in danger of falling through into the floor below.

A whole room is devoted to shoes, racked from floor to ceiling in a fashion that would earn the envy of former Philippines First Lady and shoe queen Imelda Marcos.

My hostess, a chunky 47-year-old, has made a fortune out of trading in pharmaceuticals…

She has lately discovered religion, and her apartment boasts its own Buddhist shrine.

“Before I became religious, I was always stressed, always pressured,” she says. “Now, my Buddha master tells me I should take it easier – and I do. Buddhism has taught me about my destiny.

“I’m successful because it’s my destiny. If you’re born into a poor family, then that’s another kind of destiny.

“Any time I have a problem, my Buddha master tells me what I should do…”

It was he, she says, who urged her to get into property development.

She is now doing that, too, with notable success. She employs a workforce which will soon be 100-strong and is thinking of buying a country house with a garden.

And while you’re at it, you might be interested in his article on the Chinese middle class, which is here.

10 Responses to “China’s income divide: More canyon than gap”

  1. Overthinker said

    No surprises at all. I found similar on my last visit to Shanghai, when I wandered through the working-class slums of the old Chinese city and then came face to face with the neon overkill of Pudong, just over the river and a million miles away from the slums. China isn’t a rich country. It’s a poor country with some rich people in it. The thing about China is that there are so many people there that even a fraction of the populace being rich still means a huge market.

  2. ampontan said

    That last sentence of yours could also be written about India. More than 10 years ago, I read a magazine article that noted the population of that portion of Indian society in the middle class and higher outnumbered the entire population of the U.S. Those figures have likely grown substantially since then, with the outsourcing of so much business to the country in the meantime.

  3. Overthinker said

    Yes, there are some stinking rich Indians as well. They tend to go for outrageously lavish weddings, at least by what I have read in the news. I believe that the richest man in Britain is actually an Indian, though I might need to check that.
    ….it’s either Lakshmi Mittal:
    http://www.redhotcurry.com/archive/news/2005/sunday_times_richlist_2005.htm
    or that Russian guy Roman Abramovich.

  4. Martin F said

    It has to be said, it used to be that the rich supported the building of great temples and cathedrals, not just shopping malls and yet another post-modern glass-and-steel sky-scraper.

    If Chinese rich cannot create wealth in a sustainable way, they will be thought of as poor, no matter how many shoes they have in their closets.

    Why am I not looking forward to this particular Olympics…

  5. Overthinker said

    It’s true that cathedrals and temples generally tended to look better, but I think I’d prefer shopping malls these days, at least in terms of their role in daily life. The Gap doesn’t torture you if you suddenly shop at Uniqlo….

  6. Ken said

    Most of Chinese say, “We are more individualistic than the Japanese so that we are more suited for capitalism.”
    I disagree to it because they do not have public sense like Christianity though there are many opinions why only Japan could set up advanced society in Asia.
    I predicted current Chinese economy is a bubble and would collapse after Shanghai Expo though it was laughed at as ‘Wish of China-hater’ by a frequent poster in Japan-someting.
    But the omen started apearing earlier than my prophecy by bigger impact from sub-prime loan than Western countries as next site.
    http://www.naito-sec.co.jp/chinap/stock_price.php?stockcode=&exchangecode=&CategoryCode=NSHA&DetailFlag=true
    Over half asset of Chinese bank is already insolvent and prefectural gov is uncontrollable from central gov on tariff, etc.
    Collapse of Chinese economy may evolve to that of Communist dynasty.
    On the other hand, India is supposed to be a little different.
    China is just a subcontractor for advanced society so that she had to prepare fixed asset like factory and machinery.
    India has core competence of software and service industry and they do not have to invest so much.
    Also democracy is more functiong in India than China that prefecural governers are inefficiently investing for economic growth for their own promotion to central gov.

  7. Ken said

    Bill,

    My comment does not appear. Am I rejected?

  8. Willie said

    Overthinker,

    There’s no way of knowing who the richest person in Britain is. All the old money has hidden things down through the centuries. And rich people own publications such as Forbes or the Financial Times, so we can’t exactly expect much from them.

    China is obviously a two- or three-class society at the moment-and it will take a while for globalization to bring living standards down for the masses in places like Japan and the US-so, for now, we can look on with a bit of self-satisfaction.

  9. ampontan said

    Ken: No, you weren’t rejected. Sometimes the spam catcher picks up things that aren’t spam, and that’s what happened. I recovered it.

    I could relax the spam rules, but I get to see what gets caught as spam, and believe me, you don’t want to see it. It’s unbelievable what is flying around on the web.

  10. Ken said

    Bill,

    Thank you for quick response.
    Included site would have been taken as spam.
    Anyway, Comunist dynasty will experience reverse revolution by the dirt poor or China will return to feudalistic era written in ‘The land’ by Pearl Buck, where regional army fights against one another.

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