Chinese Economics Thread
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antiterror13
Brigadier
well, thats per 10,000 employees, kind of ratio which is meaningless in some ways buy useful for other ways ... I'd bet not many left in Hongkong
They both increased at the same speed... look at the growth rate differentials in the paper. Don't forget that this was they year when the bubble reached its greatest extent in the US. The decade long equity bubble that has been building finally popped this year, and the losses (both in absolute value and percentage) have been greater in the US than China, by quite a margin too.
Also don't forget this is only private wealth. The net financial position of the US federal, state, and local governments are not counted, nor is the same for China counted. If you account for these then the net gap drops by something like $40 trillion (the net financial worth of most developed countries central governments is highly negative; in the US it is >-$20 trillion; while in China it is very positive, something like +$20 trillion).
Therefore, even ignoring the stock market bubble popping in the US, the difference in *total* national net worth (not just households) is around 20%. That is of course not counting what has happened this year. The report for this year may show that (when including government figures as well) the US and China are level in total wealth.
The typical Chinese adult is now richer than the typical European adult, a new wealth report finds
Jyoti Mann Sat, September 24, 2022 at 1:06 AM·2 min read
- Credit Suisse found China's median wealth outpaced Europe's in its 2021 Global Wealth Report.
- The average Chinese citizen has a wealth of $26,752, around $60 more than the average European.
- Chinese wealth has surged in the past two decades, with median wealth per adult growing more than eight-fold.
Although North America and Europe together account for 57% of total household wealth globally, China is squeezing out Europe in rankings of wealth per median adult.
Credit Suisse's annual which was released this month, estimates the average wealth of households around the world.
It found that Chinese median wealth per adult, at $26,752, now outstrips Europe, where the average adult has a wealth of $26,690. The European figure takes into account the whole of the continent, which includes many less wealthy nations in its southern and eastern regions.
Median wealth in China was more than four times greater than in Russia, where median wealth was $6,379 in 2021.
China's average wealth, however, was still less than a third of the wealth of the median American ($93,271) — and only about 10% of the wealth of the median Belgian ($256,336).
Global wealth increased by 9.8% in 2021 compared to the year before, reaching a total $463.6 trillion.
"All regions contributed to the rise in global wealth, but North America and China dominated, with North America accounting for a little over half the global total and China adding another quarter," the report said.
Europe, Latin America, Africa and India account for only 11.1% of global wealth, which the report puts down to local currency depreciation against the dollar in those regions.
In Europe for instance, the euro reached parity with the dollar for the first time in 2022, while
China has squeezed out countries in Europe which previously dominated its rankings through its "exceptional rate of wealth growth."
China attained the top spot for fastest median wealth growth out of any region, rising more than eight-fold in the past two decades, growing from $3,111 in 2000 to $26,752 in 2021, Credit Suisse said.
Sounds like you're not a very mathematical person. In 2011, the US household wealth had a 2.09X advantage over China. In 2011 that differential has shrunk to 1.72X. Admittedly, that is a pretty slow convergence but it is a convergence. US isn't "expanding" its lead.
Yeah, but does China really want to compare itself to Moldovia, Albania or Ukraine? I would guess not.
Here's the table from the report.
So, the median Chinese is still far away from the median British, French, Dutch and Italian citizens. But still way ahead of the median Russian, Brazilian, Indonesian etc. The low German figure is mostly due to the fact that Germans tend to be renters and not home-owners.
If we look at the very high elite, the US still dominates.
So yeah, the median Chinese is now quite wealthy from a global point of view but still lags far behind even the poorest Western European states like Spain or Italy.
Bonus chart:
You can see that the US is an outlier in terms of large numbers of very wealthy, when compared to other Western nations on a per capita basis.
But that is not an indication of success.
Such a continued concentration of wealth over the decades indicates a failure to provide a level playing field and equal opportunity to gain wealth. Median wages haven't changed in over 20 years. It also indicates the prevalence of monopolies and a lack of competition.
In other words, societal decay.
An old article on monopolies in the US:
theatlantic.com/business/archive/2017/02/antimonopoly-big-business/514358/
In 1949, at the founding of the PRC, China was the 8th poorest nation in the world by GDP per capita. China was poorer than the majority of African nations. All this has changed within a single lifetime. This is a testament to what strong leadership, rational economic planning, stable institutions, and a hardworking, intelligent and united populace can accomplish.
You can't compare a huge country like China to a small one like Italy. China has about the same average wealth as Europe. I'd guess that the average person in Shanghai and Guangdong is almost certainly wealthier than the average German and maybe even wealthier than the Italians.