China’s Middle Class

According to a survey jointly carried out by the HSBC and Fudan University, the number of Chinese with an annual income of USD 7,500–USD 25,000 will reach 100 million in 10 years from 2010. This, along with other surveys, may be optimistic, but all points to the emergence of China’s middle class as a key driver for growth. There are two typical features of the Chinese middle class which distinguishes them from those outside China; firstly the Chinese middle class is much younger and secondly their propensity to consume is higher.

In China, those who can participate in the economic opportunities created by the reform and opening possess a higher education qualification and training, especially those who are also trained to integrate with the world. The older Chinese people are left behind this for historical reasons. Besides, the Chinese government is investing hundreds of millions to beef up the higher education system to equip its youth with more relevant and current skills. Hence the Middle Class falls in the age group of 25-44 years old.

These newly created Middle Class has a demand for almost everything they need for living the good life: house, car, home electronics, their first holiday abroad and private education for their children.


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