Economy/Resources - 192. page
The Beijing News: Emigration of Chinese Merchants’ Is Increasing, Threating Economic Environment
Chinese News Review carried a commentary that was originally published by The Beijing News, about the increase in the wave of emigration of China’s rich and powerful merchants. According the article, 70 percent of China’s rich and powerful people have emigrated or are considering emigrating overseas. As a result, China has become the country having the largest number of people emigrating overseas. As to the reason for their leaving China, the article cited two causes: lack of security and a desire to improve life satisfaction.
According to the article, when those emigrants leave China, they also take their wealth with them. It was estimated that between 1997 and 2010 over 17 trillion yuan (US$2.73 trillion) left China. The number has grown even larger since 2010. The article stated that the domestic inflation that has occurred in recent years has had a negative impact on ordinary Chinese people’s wealth. As more and more of China’s rich and powerful merchants choose to leave, it will be more and more difficult to increase domestic demand.
Toward the end, the article raised a question of what can be done to keep people from leaving China. Based on the 2011 China Private Wealth Report published by China Merchants Bank (CMB) and Bain & Company, 27 percent of Chinese merchants having personal assets over 100 million yuan (USD$16 million) have already emigrated while 47 percent are considering emigration.
Source: China News Review, November 25, 2012
http://www.zhgpl.com/doc/1023/1/5/4/102315489.html?coluid=53&kindid=0&docid=102315489&mdate=1124081454
China News: Number of Half or Fully Shutdown Companies Reached a 3-Year High
People’s Daily: China’s Dependence on Foreign Oil Will Reach 60%
CRN: Keeping RMB Stabilized is a Long Term Strategy
Disposable Personal Income Lagged Behind GDP Growth
On October 31, 2012, Securities Times published a report on the National Bureau of Statistics of China’s recently released statistics on China’s revenues. According to the statistics, during the 10 years from 2002 to 2011, the personal disposable income of urban residents increased 1.8 times. In the same period, national fiscal revenue increased 4.5 times and domestic GDP went up 3.6 times. “This wide gap shows that during the past 10 years, most of the newly created wealth was distributed outside the reach of China’s residents. Considering the multiple of 4.5 times in the increase in fiscal revenue, it can be said that the government received a much larger share of the benefits than ordinary residents. In fact, on average, urban residents’ income increased by 10 percent per annum, while fiscal revenue went up by as much as 20 percent per annum.”
Source: Securities Times, October 31, 2012
http://news.stcn.com/content/2012-10/31/content_7280245.htm