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Focus of the Comprehensive “Xingzhong” (The Rise of the Middle Class) in Contemporary China

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The Rise of the Middle Class in Contemporary China

Abstract

This chapter systematically elaborates on the five key tasks of the current all-round rise of the middle class in China: first, we should take the “all-round rise” as a major social construction task, incorporate the development and expansion of the middle class into the national economic and social development plan and include it on the daily agenda of governments at all levels; second, we should deepen the reform of the income distribution system; third, we should further improve the social security system and employment and entrepreneurship support system; fourth, we should strive to make significant progress in the current urban–rural, industrial and vocational structural adjustments; fifth, we should give full play to the major role of employers and workers, and encourage employers actively to cultivate the middle class and laborers to grow into the middle class.

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Notes

  1. 1.

    The Outline of the 12th Five-Year Plan for National Economic and Social Development of the People’s Republic of China has been improved compared with previous five-year plans. The fourth chapter, policy orientation, puts forward the idea of “increasing the income of low-income people obviously and expanding the middle-income continuously” but, in the third chapter, Main Objectives, it is not mentioned.

  2. 2.

    Since 2014, the State-owned Assets Supervision and Administration Commission of the State Council has classified the central enterprises into three categories: public welfare enterprises, commercial competitive enterprises and enterprises with a specific function.

  3. 3.

    If the annual salary of the executives of the state-owned enterprises in Beijing, Shanghai, Guangzhou and Shenzhen is still above 350,000 yuan, and that in other areas is still above 200,000 yuan, they are regarded as high-income people and are, therefore, beyond the scope of the middle class quantified in this book.

  4. 4.

    Low-salary income is estimated at 50% below the average salary level of on-the-job workers, accounting for 40% of the national salary workers of 410 million; that is, 164 billion. If 15% of the workers can be paid above the average salary level of the employees, and they can enter the lower limit of the income level of the middle class, 24.6 million middle-income people will be added.

  5. 5.

    According to the salary standard in the 2006 civil servant salary system reform plan jointly formulated and issued by the Ministry of Personnel and the Ministry of Finance.

  6. 6.

    Quoted from the national civil servant data for the end of 2013 on the National Civil Service Bureau website.

  7. 7.

    Quoted from the Exposure of China's Business Establishment: 31.53 million; The Beijing News, May 16, 2014.

  8. 8.

    Quoted from the National Bureau of Statistics of China, Home-Ownership Rate of Rural Residents Reaches 89.3%, Beijing Times.

  9. 9.

    Quoted from By the End of October 2014 The Number of Listed Companies in China Is 2584, ASKCI, November 20, 2014.

  10. 10.

    Quoted from Why More Than 40 Listed Companies Have Never Paid Dividends, China.org.cn, July 12, 2013.

  11. 11.

    Quoted from Wu Jinglian: China’s Stock Market Is Worse Than A Gambling House, Chinareform.org.cn, January 14, 2014.

  12. 12.

    Reorganized and calculated according to the Finance Yearbook of China, 2009–2012.

  13. 13.

    Extracted from Xiang Nan, Shi Eli, How Much Fiscal Revenue Is Used on People’s Livelihood, China Youth Daily, March 7, 2015, T03.

  14. 14.

    Quoted from Party’s “Mass Line” Education Practice Ends, the “Three Public Expenses” Decreased 53 Billion Yuan, The Beijing News, October 19, 2014.

  15. 15.

    Quoted from The First Disclosure of Resources of State-Owned Enterprises: Total Assets Exceed 104 Trillion Yuan, People’s Daily Overseas Edition, July 29, 2014.

  16. 16.

    Quoted from 11.6987 Million Small and Micro Enterprises Accounts for 76.57% by the End of 2013, CNSCDC.com, March 28, 2014.

  17. 17.

    It is estimated that there are 410 million salary earners: 370 million working in enterprises and 40 million in government departments and public institutions.

  18. 18.

    Quoted from the Vice Minister Ministry of Human Resources and Social Security Qiu Xiaoping Answers the Press's Questions on the Reform on the Compensation System for Responsible Person at the Enterprises Under the Central Government, Zhongguo Zuzhirenshi Bao, September 3, 2014.

  19. 19.

    Quoted from the Vice Minister of the Ministry of Human Resources and Social Security, "The House-For-Pension Will Not Replace the Pension Insurance, The Beijing News, October 22, 2013.

  20. 20.

    Quoted from the Ministry of Human Resources and Social Security, The Social Security Savings of 2014 Is 587.5 Billion Yuan, People's Daily Online, October 22, 2013.

  21. 21.

    Extracted from the Ministry of Human Resources and Social Security Released 2013 National Social Security Situation, People's Daily Online, June 24, 2014.

  22. 22.

    Quoted from Wang Xiaohui, The Pension Level Difference Per Capita between Urban and Rural Residents Is 24 Times, Becoming an Obstacle to Urbanization, “Chinese Times”, January 23, 2014.

  23. 23.

    Quoted from the confidential research data from the Medical Research Laboratory of the Social Security Research Institute of the Ministry of Human Resources and Social Security.

  24. 24.

    Quoted from Guo Jinhui: The World's Largest Social Security System in China Overloads, One Staff Serves 10,000 People, China Business Daily, April 29, 2014.

  25. 25.

    Quoted from the Ministry of Human Resources and Social Security: Social Security Fund Balance Pressure Increase, Xinhua Net, February 5, 2015.

  26. 26.

    Quoted from the Ministry of Human Resources and Social Security, The Average Yield Rate of Social Security Fund Investment Council Is over 8%, qq.com, March 10, 2015.

  27. 27.

    Quoted from The Employment Situation of College Graduates and the Construction of Monitoring System, People's Tribune, No. 33, 2012.

  28. 28.

    Quoted from The Number of College Graduates Nationwide Reached a Record High of 7.27 Million in 2014, eol.com, April 4, 2014.

  29. 29.

    Extracted from China Has Peasant Laborers 274 Million, 168 Million of Them Are Migrant Workers, China.org.cn, February 8, 2015.

  30. 30.

    Quoted from Baidu Baike, the section on the background of the entry mass entrepreneurship.

  31. 31.

    Quoted from Guo Lipu, Research on the Countermeasures of Reemployment in the Process of Reducing Overcapacity, Hebei Qiye, No. 9, 2014.

  32. 32.

    The quoted text above is from Opinions of the State Council on Further Promotion of Reform of the Household Registration System.

  33. 33.

    According to statistics from the China Statistical Yearbook and China Statistical Yearbook on High Technology Industry.

  34. 34.

    According to statistics from the 2013 China’s Top 500 Manufacturing Enterprises’ Substantial Slowdown in Growth, Xinhua Net, August 31, 2013.

  35. 35.

    According to the Statistical Bulletin on National Economic and Social Development, 2014 of the National Bureau of Statistics, the total number of employees in China was 77.253 million. Minus 39.31 million urban employees and 273.95 million rural workers, finally 105.48 million people are engaged in agricultural labor.

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Su, H., Wang, H., Chang, F. (2022). Focus of the Comprehensive “Xingzhong” (The Rise of the Middle Class) in Contemporary China. In: The Rise of the Middle Class in Contemporary China. The Great Transformation of China. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-19-5099-5_10

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  • DOI: https://doi.org/10.1007/978-981-19-5099-5_10

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  • Publisher Name: Palgrave Macmillan, Singapore

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