Big Spenders,

Big Savers in Beijing

According to statistics released by Beijing Municipal Commission of Development and Reform, the deposited savings of Beijing residents exceeded RMB 1.2 trillion in 2008, averaging RMB 71,000 per capita. The figure in 1978 was RMB 930 million, averaging RMB 106.7 per capita. In terms of peoples incomes, the per-capita disposable income leapt from RMB 365 in 1978 to RMB 24,725 in 2008, a whopping 67-fold increase. The per-capita net income of Beijing rural residents was at a more modest RMB 10,747 in 2008, but this was 47 times the 1978 record of RMB 225. When it comes to opening the wallet, measured as per-capita consumption, Beijings urban and rural spending was clocked at RMB 359.9 and RMB 185 respectively in 1978, and by 2008 they had soared to RMB 16,460 and RMB 7,656 – an actual increase of 6.6 percent and 8.5 percent deducting price factors.

Ratio of Food Consumption to Spending Has Dropped in Urban and Rural Areas Since 1978

Urban and Rural Areas Since 1978

According to China General Chamber of Commerce and the China National Commercial Information Center, Chinas Engels Coefficient (the proportion of food consumption in total spending) has gone down by 19.6 percent and 24 percent respectively urban and rural since 1978. Statistics show that the urban Engels coefficient has fallen from 57.5 percent in 1978 to 37.9 percent in 2008, while that of rural areas has decreased from 67.7 percent in 1978 to 43.7 percent in 2008. In addition, a wider variety of food is available on the market and people are putting more and more emphasis on nutrition and a healthy diet. In better-off urban areas, the consumption of poultry, eggs, aquatic products, alcohol and fresh dairy products has all increased substantially.

Free Medical Coverage for Orphans with Critical Illnesses

Free medical coverage for Chinas orphans with critical illnesses will be jointly operated by the Ministry of Civil Affairs and the China Children and Teenagers Fund. China has over 570,000 orphans who are now insured for 12 illnesses, including m alignant tumors and leukemia, organ and stem cell transplants, and acute kidney failure. The public may donate to the foundation online and through mobile text messages, as well as at banks and post offices. The foundation is also entering a partnership with Give2Asia to help make it easier for overseas donors. Donors in places like the U.S. and Hong Kong enjoy professional handling of their donations and preferential tax treatment.

Foreign-invested Companies Allowed to List on Chinas Stock Market

In order to expand fields of Sino-foreign cooperation, encourage new investment modes and optimize the structure of foreign investment, China will gradually reduce limits on the equity stake proportion allowed to overseas investors. Qualified foreign-funded enterprises will be permitted to list on the countrys stock market, according to Minister of Commerce Chen Deming. Under the impact of the global economic downturn, the number of newly-established foreign-funded enterprises in China only came to 12,264 in the first seven months this year, and active foreign direct investment totaled US $48.4 billion. This represents a year-on-year drop of 27.4 percent and 20.4 percent respectively. Chen said that in order to enhance two-way investment, China would open up service industries and encourage foreign companies to invest in high and new technology sectors.

Chinese Mainland Advances to the 29th Most Competitive Economy

The Chinese mainlands ranking rose one place from last years rank of 30th to 29th on the Global Competitiveness Index for 2009-2010, according to a report released by the World Economic Forum (WEF). Chinas increasing competitiveness mainly comes from its rising innovation capability. The reports global competitiveness index is based on 12 categories, including such dimensions as institutions, infrastructure, and macroeconomic stability. China made progress in subindicators like commercial maturity (38th) and innovation (26th), advancing by 5 and 2 places respectively over last year. The report also indicates shortcomings China would be wise to tackle: maturity of financial markets, technological readiness and higher education. This year the U.S. fell by one place – ranking second after Switzerland – due to its weakening financial market and macroeconomic instability.