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Simple facts about China in 2015

09/23/2015

China's per person GNP is about one fourth the U.S. on a purchasing parity basis which covers the cheaper price of goods and services in developing countries. But this does not reflect the wealth distribution which is highly skewed geographically to regions on the coast and around cities such as Beijing and Shanghai, and in the population with wealth concentrated with the people in the top 20% of the population. As a result most people in China make only a small fraction of what Americans make. Wealth and incomes are also skewed in the U.S. since 2000 but not as much as in China. This is why China as a whole may not have arrived at middle income status. The other characteristics of China are the huge focus on infrastructure building through state run companies and banks, use of a large portion of the world's commodity resources, which is now winding down as China shifts to a more consumer driven economy. The boom years of growth are now behind China, and China faces further hurdles to growth in the next decade with the deb to GDP ratio estimated at about 270%. The Communist Party of China sees itself as the only way for China to continue the path to modernization and growth.

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7 simple questions and answers to understand China and the U.S. - The Washington Post

Washington Post 09.23.2015

Ana Swanson, Ana, Swanson