China's $20 trillion paradox: rich country, poor citizens
The gist
China's economy has grown from $1.3 trillion in 2001 to nearly $20 trillion, but incomes lag.
The gap between export champions and weak household demand shapes what comes next.
How it unfolded
- 1978Deng Xiaoping's landmark economic reforms began.
- 2001China joined the World Trade Organization, a deal that turned a $1.3 trillion economy into one approaching $20 trillion.
- 2013Xi Jinping came to power; his government has sought to ease regional disparities since then.
Key terms
- World Trade Organization
- An intergovernmental organization that regulates and facilitates international trade between nations.
- high-income threshold
- The per-capita gross national income level above which the World Bank classifies an economy as high-income.
- common prosperity
- A Chinese Communist Party slogan and goal of boosting social equality and more equal income distribution.
Source: Wikipedia