September 2021 2 16 Report
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1 Millions of people suppose China with its huge population is automatically
2 a huge market for consumer goods. But this is not exactly the brief case.
Although its nominal GDP is about $6500 per capita, which is over $500 per month, 
a considerable part of this income belongs to the communist and government. 
What is left is distributed very unevenly among a bunch of super-rich and the 
overwhelming majority of the poor. The average income of working people only 
recently exceeded $100 per month. Of this only about a half is spent. In this 
country with almost none non-existing social protection, people developed a deeply 
rooted tradition of saving money – for elderly years, for education of children and on 
10 
for the rainy day. They save a half or more of what they earn. The rest is spent on
11  
absolutely necessary things, like food, clothes, housing and communal services. 
12  
Almost nothing is left for the other consumer goods. 
13 
Things began to improve not a long time ago. The global economic crisis of 2008
14 
made the Chinese government seek neither alternatives to global markets inside the 
15 
country. For this they are now stimulate people to spend more and save less. 
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