Tag Archives: economy of china 2016

China has more billionaires than the United States

China is surpassing the United States

Where are all the billionaires? In China, despite an economy slowdown, corruption, crack down…

According to The Hurun Report, a China-based wealth research firm, China has 568 billionaires whereas the United States has 535 becoming the first in the world list. It surpassed the U.S. in summer 2015 and has grown by 90% last year only.

However, Hurun’s list is subject to debate, because it is different from Forbes’ list and other wealth expert firms, which keep the US as the country with the highest number of billionaires. According to Forbes’ 2015 China report, China has 335 billionaires whereas the US has 536.

Usually, when an economy is slowing down, billionaire growth decelerates too. But from 2014 to 2015, the total wealth of the world’s billionaires grew by 9 percent, reaching $7.3 trillion in 2015.

According to Hurun, Beijing would have surpassed New York as the billionaire capital of the world.

Rupert Hoogewerf, chairman and chief researcher of Hurun Report, declared “Despite its own slowdown and falling stock markets, China minted more new billionaires than any other country in the world last year, mainly on the back of new listings”.

Hoogewerf was not been able to explain why Hurun’s numbers are so different from Forbes‘, just claiming people’s personal wealth is hardly an exact science — especially in the unclear Chinese economy.

He also said that was a low count; he estimates they missed, at least, two, because “Some people deliberately make their wealth a secret because … they gained it through illegal ways.” and “Some others simply prefer to keep a low profile.”

dollars and yuans

Hurun lists the different main sources of wealth in China. Real Estate, Manufacturing and technology are the 3 biggest sources of wealth in China, the first one produces 117 billionaires, the second one 94 and the last one created “only” 68 billionaires.

According the report, China also has the largest number of young billionaires (under age 40) and of self-made women: 93 out of 124 self-made women billionaires worldwide are from China.

Read more: 10 Digital Strategies you need to learn if you work in Travel industry in China

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    Five interesting tips on Chinese economy

    Five interesting tips on Chinese economy

    China is on its way to become the largest economy in the world. This history of this growth is fascinating because of the many challenges it has successfully met along the past 35 years, and the challenges that lie ahead of this semi-industrialized economy.

     

    1- A successful evolution to market economy

    In 1978, China had a centralized economy, which was inefficient and slow without any possibility of an economic market.

    In order to avoid discontent from Chinese People, a new Chinese Government then restored a new policy reform little by little, starting with the dissolution of Communes. Each reform led to the next one and were entitled “reform without losers”.

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    Mid 1990, China works on a reform coalition which opened the economy to market, and privatized it on several front.

    This way, Chinese government achieved creating a semi-marketised economy, in which the government continues to play a major role, for instance through the power of the remaining state-owned enterprises and the state’s domination on the financial system.

    2-  An amazing growth

    This new policy has allowed an increase of the Chinese economy of 10% per year during more than 30 years. This policy succeeded “thanks to’’ a 300 million people population and the famous dollar a day poverty.

    This high rate of accumulation was actually necessary for a quick growth which was assisted by several factors like a ready supply from the rural areas and a new policy about primary and secondary schooling.

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    Furthermore, a high rate of productivity allowing a labor-intensive manufacturing at low cost has contributed to make China the Workshop of the world.

    3- China is the most inegalitarian country in Asia

    This quick growth created more inequality between rural and urban areas: discrepancies in income compared to the cost of life of skilled workers in urban areas are one of the key factors.

    China-gap-rich-poor-people

    High-productivity and very low income even for skilled workers has contributed to this rise of inequality. Chinese government considers this phenomenon as a threat to social instability and is currently trying to reduce it.

    4- China: a political economy success which still has weaknesses.

    If China has centralized a political governance, its economic governance is decentralized. According to some economic experts, this sharing of government power is dangerous for economy itself, because the government cannot control if these economic decision-makers pursue the aims decided by the Head of power.

    Furthermore, after a quick and powerful economic growth, China seems to see its economy slow down because of a lack of labour-workers and a rise of corruption, together creating more social instability.

    Chinese political economy has been a success but is now very fragile and needs a financial adjustment program to secure avoiding a financial crash.

    5- The life satisfaction of Chinese people

    chinois famille

    In China, measures are regularly taken regarding life satisfaction. With a rise of household income, we could expect a rise of life satisfaction too. But some studies revealed that the average was not higher in 2010 than in 1990. Actually, it depends of several key factors such as relative incomes (which has not risen), people’s sense of economic and social security (China has seen the biggest migration in human history with 100 million rural migrants heading to cities for work), perception of corruption and environmental degradation.

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