A good level of life may be expected for all Chinese people given that their country has the world’s second-largest economy. Nevertheless, this is not always the case in terms of financial resources. The answer to this issue is complex since the definition of high income in China is different from that in other nations. As such, the purpose of this article is to investigate what constitutes a high income in China, how that number is arrived at, and how it stacks up against the averages in other countries.
How is High Income in China Calculated?
The Chinese government defines “high income in china groups” as those with yearly salaries and incomes over a certain level. Formal income (pay and bonuses from employers) and informal income (bartering, tips, and the like) meet these levels, which vary by province (freelance work and rental income).
In China, a high-income family in 2020 will have an annual income of around 1 million yuan, or about $150,000. A person must make above 9,000 USD annually (about 60,000 yuan) to be considered to have reached the informal income level. Since the value of the yuan declines over time, this figure climbs somewhat each year.
How Does High Income in China Compare to Other Nations?
It’s worth noting that what passes for a large salary in China may not be so in other countries. In the United States, for instance, a high-income worker might expect to make anywhere in the neighborhood of $200,000 each year. Whilst this may seem like a lot more money compared to what one would make in China, one must remember that the cost of living in the United States is far greater than in China.
When converted to US dollars, the “high” income level in China is about similar to a salary of $30,000 to $80,000. A “high” salary in China may not have the same purchasing power as the same income in another country, as seen by this disparity.
Does Higher Income Mean a Higher Quality of Life?
Many people make the mistake of thinking that if they make more money, they would have a better standard of living. For the majority of Chinese, even a middle-class wage is not enough to live comfortably. Many of these folks feel like they’re leading two lives: one at work, where they’re successful and well-off, and another at home, where they’re unhappy and struggling financially.
The Chinese government is always aware of this issue, which is why the cutoff for “high income” keeps being raised. To those on the brink of poverty, they believe this will provide some relief, while others with more disposable money would enjoy improved living conditions.