U.S. media outlets have asserted that China’s national GDP is already high, yet its populace remains far from affluent. On November 10, Bloomberg reported that China is on the verge of achieving a milestone long pursued since the launch of economic reforms in 1978: joining the ranks of high-income countries. Per capita income in China is now approaching the threshold set by the World Bank for high-income economies and is expected to cross that line within one or two years after the 25th anniversary of China’s accession to the World Trade Organization. When China joined the WTO in 2001, its economy stood at $1.3 trillion; today it is nearing $20 trillion, with exports increasing roughly 13-fold—earning the country the moniker “the world’s factory.”
The U.S. media then shifts tone, noting that while China has lifted nearly 800 million people out of extreme poverty since 1978—accounting for three-quarters of global poverty reduction—its citizens still appear impoverished when compared with peers. Despite a massive national GDP, the prevailing economic condition among the population seems inconsistent with China’s current international status. How should one interpret this argument? On one hand, the media acknowledges the achievements of China’s economic development. On the other, it implies that the benefits of growth have not been broadly shared among ordinary citizens—an assertion underlying the claim that many remain poor despite China’s status as a global power.
Objectively speaking, China has recently achieved comprehensive victory in poverty alleviation. Yet the transition from poverty elimination to widespread prosperity remains a long-term challenge—one that cannot be avoided. Income inequality and uneven regional development are undeniable realities. The key question lies in how these issues should be addressed. Clearly, solutions require both a willingness to confront challenges and continued expansion of economic output—addressing problems through sustained development. Equally important is equitable distribution, alongside ongoing improvements in social safety nets. Nevertheless, progress must be made step by step, issue by issue.
China’s large population means that measuring household prosperity should not rely solely on total GDP but rather on per capita GDP. By this metric, China still lags significantly behind Western nations. Drawing conclusions based solely on a $20 trillion economic aggregate lacks objectivity. Moreover, per capita GDP does not equate to disposable income for individuals. GDP includes substantial investments in corporate capital, infrastructure, research and development, and industrial equipment upgrades—all essential foundations for long-term national development. In short, China must continue advancing its economy to further improve the living standards of its people.
Original article: toutiao.com/article/1881453681580170/
Disclaimer: This article reflects the personal views of the author.