Define upper middle class driver#

The “middle class” is defined by Hurun as “Urban residents with an annual household income of more than RMB 300,000 (approx US$42,647) in first-tier cities and more than RMB 200,000 (approx. This figure continues to be used in communications and reports from China’s state media, but no up-to-date statistics have been released directly from government institutions since then.Īccording to the Hurun 2018 China New Middle-Class Report, there were over 33.2 million middle-class households as of August 2018. US$14,844 to US$74,221 in 2022) per year.Īn oft-quoted figure for the size of China’s middle class comes from the former Director of the NBS, Ning Jizhe, who, using the above definition, has stated that China’s middle-income group surpassed 400 million people in 2017, or 140 million households. The most common definition currently seen in China is the scope set by the National Bureau of Statistics (NBS), which defines the “middle-income group” as a typical three-person household that earns between RMB 100,000 to RMB 500,000 (approx. The middle class in China, or alternatively middle-income groups, has been defined in a number of different ways over the years.

Income inequality, regional disparities, and rising living costs present obstacles to raising more people to the middle-income bracket, and addressing these issues is becoming a top priority for the government.

However, as China’s middle class grows, it also faces new challenges and pressures. The middle class is therefore also becoming an important means for China to achieve a higher degree of economic self-sufficiency by leveraging domestic demand for goods and services. As incomes have risen, so has demand for consumer goods, as people are more able and willing to spend on things such as cars, housing, education, healthcare, and travel. The growth of the middle class in China has presented a host of new opportunities for global businesses seeking to capitalize on the group’s rising purchasing power. The rise of the middle class in China not only signifies a significant societal shift but also has profound implications for the country’s domestic consumption patterns, social structure, and global economic relations.

Define upper middle class driver#

As the country underwent a period of rapid economic transformation, its middle class emerged as a key driver of its economic development. And Giulia Interesse Reading Time: 13 minutesĬhina is home to the largest middle-class cohort in the world.