China’s wealth inequality has worsened in pandemic, highlighting ‘alarming’ global trend, Oxfam finds

World Bank Group warns that pandemic has widened the rich-poor gap, particularly in emerging markets and developing economies such as China

China’s wealth gap has widened particularly due to the ownership of flats, which is the biggest source of household wealth and debt, economist says

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China’s income and wealth inequality is worse than that of European countries, but it is better than in the US and many Latin American and African countries, according to international findings. Photo: AFP

Published: 8:00pm, 23 Jan 2022

The world’s income and wealth inequality is said to have reached an “alarming” level two years into a global pandemic that has killed at least 5.5 million people.

The disparity has proved particularly challenging for Asian countries, forcing Beijing, Tokyo, Bangkok and others to provide more policy support, according to analysts.

The wealth of the world’s 10 richest men has doubled to about US$1.5 trillion since the coronavirus pandemic began, but the incomes of 99 per cent of humanity are worse off, Oxfam said in its “Inequality Kills” report on Monday.

“This is the biggest surge in billionaire wealth since records began. The trend is alarming,” warned the organisation that is dedicated to alleviating global poverty. It also called for permanent wealth and capital taxes, as well as increased investment in health care and social security.

“It is significant that the leaders of the world’s two largest economies – the USA and China – are pursuing some crucial policies that reduce inequality, including higher taxes on rich people and action against monopolies,” it said. “This is just a beginning, but it provides opportunities for a new economic consensus to emerge.”

China’s income and wealth inequality is worse than that of European countries, but it is better than in the US and many Latin American and African countries, data from international studies has shown.

Premier Li Keqiang’s comments in May 2020 – that 600 million Chinese, or 42.9 per cent of its total population, live on an average monthly income of 1,000 yuan – helped draw attention to the country’s inequality problem.

David Malpass, president of the World Bank Group, warned of how the coronavirus crisis has worsened the rich-poor gap, and particularly the within-country inequality of emerging markets and developing economies.