China faces large income gap between its rich and poor: Report

China. Representational image by Yan Ke on Unsplash

Beijing/CMEDIA: A large income gap between its poor and rich is being faced by China as revealed in the country’s income distribution statistics, according to The Times of Israel.

The sharp hike 0.466 points in 2021 in China’s Gini coefficient, which is above the warning level set by the United Nations of 0.4.

Beijing and Shanghai had a 2021 per capita income which was 227 percent of the average national per capita income of USD 12,551, reports The Times of Israel.

Countries such as Germany, Canada, and Japan, by comparison, all have estimated Gini coefficients that hover at just over 0.3.

A significant income gap exists not only between the urban and rural households in China, but also between different provinces in the country.

China’s poorest province, Gansu, on the other extreme, had a per capita income of just 51 percent of the national average indicating a growing inequality in China. which can have reportedly serious economic, social, and political implications,

According to The Times of Israel’s report workers had been equipped with capabilities needed to excel in the high-skilled, high-wage jobs.

China’s Hukou household registration system has barred migrant workers with full access to healthcare, education, pension and unemployment benefits, reports The Times of Israel.

As a consequence a large segment of the population is living in relatively precarious conditions.

Only an estimated 16 percent of rural migrants working in cities were covered by pension benefits, while only 18 percent had urban health insurance, and unemployment insurance was available only 10 percent, reportedThe Times of Israel.