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BIZCHINA> Review & Analysis
Defining 'middle class'
(China Daily)
Updated: 2006-09-26 13:46

These people could be civil servants, company managers, technicians or private business owners.

And they have been turning out to be a driving force for the country's social modernization and stability.

In an era of economic boom, the country has been tailoring policies that have encouraged the group to grow. Such initiatives include expanding teachers' salaries, pension and healthcare plans for urban residents, as well as tax breaks, loans and new advantages for entrepreneurs. The legitimacy of private enterprise has been fully recognized in the Constitution.

This group - however abstract its definition may be - has increasingly provided evidence that the government's policies have been benefiting society.

With their high levels of consumption, the group - accounting for 15 per cent of China's population of employed, as the Chinese Academy of Social Sciences predicted - would send an inspiring message to company boardrooms. They offer the allure of a market on which every businessperson can capitalize.

This group of wealthy consumers, though its numbers are unclear, have visibly populated the country's more developed cities. The clear pockets of these people, especially among the 20 to 45-year-old age group, make it possible that the reality of the Chinese purchasing power hits home.

Still, these people own a large chunk of money, an important source of investment in the domestic economy.

In this sense, policy-makers should find more about this group of people.

The survey initiated by the CNRA in the next six months is therefore a necessary effort.


(For more biz stories, please visit Industries)

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