China’s economic boom is a great story, but for many it still reads like Les Misérables

As China’s economic boom continues to predominantly favour the rich and powerful, there are questions about why life for many must be so hard in a period of prosperity
Anecdotal examples of economic hardship are rife among China’s working class

Zhou Xin

Published: 6:30pm, 18 Jan 2021

Why you can trust SCMP

For those following China’s economic and social developments, a common impression is that there are always two seemingly conflicting stories unfolding in the world’s second-largest economy.

The first story is about a booming China. The country has never been so prosperous and powerful, and it is only a matter of time before China replaces the United States as the world’s top economy. In the latest set of macroeconomic data for 2020, the figures make China the envy of other major economies – a 2.3 per cent annual rise in gross domestic product, mild inflation of 2.5 per cent, and nearly 12 million new urban jobs created, just to name a few.

The second story, however, is less encouraging. One might assume that a super cycle of economic growth, spanning more than four decades, must have left most of Chinese society happy and satisfied. But the real picture, as evidenced by no shortage of personal stories, is anything but.

Young and ambitious people are finding it harder to get a decent job; middle-aged employees work themselves to the bone to make ends meet, from mortgage payments to education costs; and many Chinese retirees are finding that the country’s pension and health care systems are not fully prepared to support them.

Tragedies that would not be out of place in books such as Friedrich Engels’ The Condition of the Working Class in England or Victor Hugo’s Les Misérables are still occurring in China, even though it is much more civilised and affluent than Europe in the mid-19th century.

In the last few weeks, a 22-year-old employee at one of China’s most successful technology companies collapsed on her way home and died after working long hours past midnight; a 43-year-old delivery man for one of China’s most popular food-delivery apps died on the job, and his family learned he was not covered by any insurance nor employment contract; and one of his colleagues set himself on fire after repeated failures to collect 5,000 yuan (US$771) in unpaid salary.

As China’s economic growth continues to favour the rich and powerful over the underprivileged, questions mount as to why life has to be so hard in a period of prosperity and greatness. Beijing’s scrutiny over Big Tech – the founders of which often occupy the top spots on rich lists –is read by some as a response to such public resentment, though it remains questionable whether clipping the wings of private capital is an effective approach to achieving a fairer distribution of wealth in China.

Chinese leadership has clearly seen the problem with leaving many people out in enjoying the fruits of the country’s economic growth. President Xi Jinping said in a recent speech that the country’s development must be for the people, and that the wealth gap must be tackled as a “political” problem as well.

It will be worth keeping an eye on what Xi will do in 2021 to turn a good economic story into gains for the Chinese people.

This article appeared in the South China Morning Post print edition as: China story must have happy ending for all