Beijing (TDI): Over the past 75 years since the founding of the People’s Republic of China, the country has witnessed remarkable improvements in living standards, moving from basic subsistence to moderate prosperity across all sectors of society.
According to a report from the National Bureau of Statistics (NBS), China’s per capita disposable income, which stood at a mere 49.7 yuan ($7.1) in 1949, surged to 39,218 yuan in 2023—an increase of 75.8 times, adjusted for inflation, with an annual growth rate of 6 percent.
The most significant changes have been observed since the reform and opening up period in 1978, which led to rapid growth in the private economy and a booming national economy.
Prior to these reforms, residents’ consumption was focused primarily on basic needs such as food, clothing, and daily essentials.
Today, Chinese households are spending more on durable goods, including cars and home appliances.
One clear indicator of this shift is the Engel’s coefficient, which measures food expenditure as a proportion of total household spending.
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In 2023, the index stood at 29.8 percent, a significant drop from 63.9 percent in 1978, reflecting improved living conditions.
Household appliance ownership illustrates this transformation.
By the end of 2023, the average number of refrigerators per 100 households reached 103.4, compared to just 0.2 in 1981.
Similarly, the number of color televisions per 100 households rose from 0.6 in 1981 to 107.8 by 2023, while the number of washing machines increased from 6.3 to 98.2 per 100 households during the same period.
Housing conditions have also vastly improved. The housing system, once dependent on welfare allocation, has gradually shifted towards marketization, easing the housing shortage for both urban and rural residents.
According to the NBS, the per capita housing floor area increased 4.8 times from 1978 to 2020, reaching 38.6 square meters for urban residents and 46.8 square meters for rural residents.
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The report also highlights the significant increase in life expectancy, which has climbed to 78.6 years in 2023—43.6 years longer than in the early years of the People’s Republic of China.
Infrastructure development has seen notable progress, with 99.8 percent of urban communities having access to highways by the end of 2023, a 0.6 percentage point increase from 2013.
Additionally, 99.9 percent of rural communities now have access to cable TV signals, up 10.7 percentage points from a decade ago.
Access to clean drinking water has also expanded. In 2023, centralized purified water supplies covered 98.2 percent of urban communities and 88.2 percent of villages—significant increases compared to 2013.
Medical and educational services have greatly improved as well. In 2023, 96.1 percent of villages had access to medical stations, an increase of 14.5 percentage points from 2013.
The percentage of villages with kindergartens or preschool classes reached 92.4 percent, up 16.7 percentage points.
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Urbanization has contributed to enhanced consumer power in cities, with a wider range of commodities available and sustained growth in urban markets.
From 1953 to 2023, retail sales of consumer goods in urban areas grew at an average annual rate of 12.1 percent.
Urban retail sales now account for 86.4 percent of total retail sales, up from 45.4 percent in 1952.
Strides in Poverty Alleviation
China has also made significant strides in poverty alleviation.
By 2020, 98.99 million rural residents had been lifted out of poverty, and all 832 previously designated impoverished counties were officially declared free from poverty, marking a key achievement in the nation’s ongoing development journey.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
