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Q: The middle class, how many are they ?
For years, we've been hearing about the rising Chinese middle class, that was supposed to be the future and replacement of the declining west. This statement was a little premature to say the least.
The classic figure says this middle class ranges between 200 and 300 million individuals. I personally think it probably hardly reaches the first hundred million. But again, what really defines the middle class in China? Can it really be compared to the lifestyle of most North Americans or Europeans?
The official doctrine, if I allow myself to summarize it, defines the middle class as those owning a car and an apartment (Deng Xiaoping's "小康") with some degree of materialistic comfort.
More than possessions, what would be your definition of a middle class, and what would be your estimation on the Chinese population ?
I really think that there used to be more middle class families in China about 10 years ago, today I see people with more money than the average Chinese but they can't be called middle class, because of the inflated prices of the property market they can barely afford a modern high rise apartment instead of living in a crappy communist block, they eat the same crappy food as the poor folk and certainly can't buy imported or high quality groceries on a daily basis.
IMO many people who used to be economically describable as middle class members are not anymore for various reasons such as the rising cost of life, or wrong investments that made them lose most of their money. Others have emigrated to Western countries and have no more contacts with China. Sure China has more millionaires and billionaires than 10 years ago, but most of the middle class has been crushed and the wealth gap is larger than ever before.
expatlife26:
My hunch is there was a sweet spot about 10 years ago when the rising salaries hadn't yet been fully outpaced by the rising cost of housing. I remember an interview with a worker from that time he said he would be happy with 4000 renminbi per month so he would be able to buy a house in just a few years. that sounds so ridiculous now.
Consumer crap is now much more affordable on the average salary but assets are now far out of reach.
Crap, I just wrote an entire blog's worth of comments, and pressed the wrong button then it all disappeared. That spoiled my mood for the rest of the afternoon! Not your fault of course. I'm just pissed.
Eh, to summarize:
Historical middle class: Creative, ingenious, driving force for change and improvement
Current middle class: Cowardly, petty, focused on childish wants
I should mention that modern middle classes in the West aren't much better than the Chinese variety, but they still have some modicum of decency because of OLD (diminishing) VALUES.
China is a cautionary tale of what the USA will look like if oligarchies, monopolies and police state are allowed to continue to expand. The trend towards this is definitely starting in the USA now.
Contemporary middle classes the world over are the epitomies of MEDIOCRITY. Almost the opposite of what historical middle classes were. They are breeding grounds for pettiness and greed, not social and technological improvement. They value cowardice and conformity, and China is just copying us in this respect. Unfortunately, if their rigid social development plans rely on the creativity of the middle class to improve China, they're taking instructions from an outdated manual.
royceH:
Geez Coin....terrific summary from a bloke who's pissed!
Reminds me of this...
The definition of these two statements.
1) I'm pissed and I need a fag.
2) I'm pissed and I need a fag.
The first one's from an Aussie. The second one's from a Yank.
My question...What's the difference?
coineineagh:
Yeah, funny 'fag' joke. I won't elaborate, because there are gay viewers, so we should try to avoid anti-gay insults. As for me being pissed, that was only after I lost my blog-length response. My stand by my commentary even in a non-pissed state of mind.
The trouble with China is that they believe that by simply having more money they are automatically better and therefor middle class. Although wealth and the ability to live a comfortable life is part of being middle class it also encompasses attitude, manners and civility. For me this where the idea of a middle class in China falls down there really are not many that would score highly if we bring these ideas into play. Most of the wealthy here appear to be no better than any other poorer person who has suddenly won a fortune on the lottery. you can take the trailer trash out of the ghetto but you cant take the ghetto out of the trash.
I think the figure given is fairly accurate. In the cities you have this middle class of people who made money from land deals. Have a car and a house or two. Have a decent job or stqrted a business and do alright. These people are older and their children are 20 to 30 and were raised middle class. Not eating noodles every day, but not draped in gucci. A honda is a good car and if i save a bit i can go to thailand this year i hope.
The other group is the middle management In large companies in the outskirts of large cities. Around 28 to 35 been working and saving for a decade and have bought a house in these outskirts where prices arent insanse. Have a car. Pull in 7 to 10 a month. Saves more than we do but still likes to have a good time. Interested in new things. Likes starbucks way too much. And a 3 series BMW is the top of the line for them and thats cool.
This is the middle class of china that I have been around
These are also far and away my favorite chinese people.
I find it so strange that others dont see China the same as me and im really interested to understand the "real china" as they see it. Because obviously its different for everyone.
I don't think even the OECD knows the answer. Many economists estimate 15 to 20 % of China's population lives within this class. There are different definitions and all relate to financial living standards. The average Chinese family that can afford to maintain a house, a car, eat relatively well and send there kids to a mediocre school can be considered middle class. In China the geographic area becomes another factor because 1st tier cities like Shanghai are mush more expensive to live in than a place like Ba Mang in Guangxi. Lifestyles cannot be compared to industrialized countries until because culture has an affect on our lifestyle. What can be compared is material assets.
