China’s ‘two sessions’: wealth inequality poses threat to Beijing’s post-pandemic economic plan
- Growing inequality in China, especially between cities and rural areas, poses a major challenge for policymakers attending the annual ‘two sessions’ this week
- The wealth gap threatens to constrain consumption just as Beijing rolls out its ‘dual circulation’ economic strategy, which focuses on boosting domestic demand
When Peng Biao first shifted to the bustling city of Guangzhou from the remote mountain village she grew up in, she felt a world away from home.
Like hundreds of millions of Chinese from underdeveloped rural areas, Peng was forced to leave her children and parents behind to find work in the country’s booming cities. Once she arrived, she was taken aback by just how stark the gap was between China’s rich and poor.
“Compared to when we were kids or even 10 years ago, the conditions in the village have improved a lot, especially in terms of transport, health and hospital facilities,” said Peng, who works as an exhibition saleswoman.
“But there is still a lack of good jobs and life is hard.”
I’ve been working so hard, but I cannot afford to let my children and parents live here
The average monthly income in Peng’s hometown, Renhua, is about 2,000 yuan (US$309), while a villager planting half a hectare of rice might only earn about 10,000 yuan a year - equivalent to the average monthly salary of a white-collar worker in Guangzhou.
