China's Urban Income Gap Widens To Alarming Level

Beijing, February 6, 2006

 

Xinhua news agency reported on Monday that China's income gap between the rich and poor has widened to an alarming level with the gini coefficient at 0.4, the international benchmark for caution. The SDRC said China's income gap is continually expanding, and is presently 0.4.

 

And the SDRC warns the actual figure may even be higher as a number of incomes may have been underestimated. Statistics show that the 20% low-income group in China's cities only get 2.75% of the county's total urban income, or equivalent to only 4.6% of the income of China's 20% top-level rich group.

 

Professor Li Yingsheng of the Renmin University of China, who participated in the social investigation on urban income, said China still lacks an income adjustment mechanism.

 

Meanwhile China exported medical products worth 13.8 billion in 2004, 94% of which were western medicine, the ministry of commerce said here on Monday. The exports were up 28.1% over 2004. Imported medical products totaling $11.84 billion, was up 18.5%, the ministry said.

 

A reliable source stated that the widening gap between rich and poor. even while exports continue to rise, is sowing serious seeds of dissension that have sparked riots in some places. Rural areas are demanding a bigger slice of the pie since most of the benefits of the ever expanding export business remain in urban areas. China Clippings points out that many of the newly relocated workers come from rural areas, and many of them are members of house churches back in their native locations. Prayer for them is needed as the problem of surviving in such difficult circumstances, and in the face of rising materialism as well, becomes a serious problem.