China’s rising per capita disposable income has global implications

Global Times

The National Bureau of Statistics of China recently released data showing that in 2024, the nationwide per capita disposable income reached 41,314 yuan ($5,672), exceeding 40,000 yuan for the first time – nearly double the 21,996 yuan recorded in 2015.

This milestone not only marks a significant improvement in the living standards of Chinese residents but also reflects the strong resilience and vitality of China’s economy amid a complex and volatile international environment.

The combination of GDP growth and an optimized distribution system allows residents to share more in the fruits of economic development. Simply put, rising incomes represent not just a numerical leap but a reflection of ordinary people’s journey from “having enough to eat” to “eating well.” This also signals China’s contribution to global economic development.

The figure of 41,314 yuan may seem simple, but it embodies profound changes. A decade ago, China’s nationwide per capita disposable income was around half this amount. Now, people are focusing more on higher-level needs such as health, education and cultural entertainment. This transformation is a microcosm of China’s economic development and a direct reflection of the improved living standards of ordinary citizens.

“The overall improvement indicates that China’s economic growth over the past few years has been highly effective. Not only has the overall economic scale expanded, but the sense of gain among all residents has also strengthened. The increase in nationwide per capita disposable income gives residents greater discretionary power to improve their living standards, which is significant for the stable development of society,” said Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation.

Nowadays, more people are pursuing higher-quality goods and services. For instance, consumer demand in sectors such as new energy vehicles, smart homes and healthcare is growing rapidly, becoming a new engine of economic growth. Stable domestic demand has become a crucial safeguard for China’s economy against external risks, especially amid rising global economic uncertainties.

From an international perspective, the growth of China’s household income is not just a Chinese story but a global one. With a population of 1.4 billion, China is one of the world’s largest consumer markets. As incomes rise, Chinese consumers’ purchasing power continues to grow. This increase in purchasing power not only provides new growth momentum for the Chinese economy but also creates enormous market opportunities for global companies. US tech firms, European luxury brands, and Southeast Asian agricultural exporters, among others, all benefit from the purchasing power of Chinese consumers. The rise in Chinese residents’ income is injecting new vitality into the global economy.

Moreover, China’s experience can inspire other countries, demonstrating that with effort and sustainable economic development, a better life for people is achievable.

Of course, compared to developed countries, there is still a gap in the income levels of Chinese residents. What can China do in the future to narrow this gap? Zhou told the Global Times that, first, China must continue to maintain high-quality development, further stabilize economic growth and provide a solid foundation for increasing household income. Second, a more equitable distribution system needs to be established. By optimizing distribution mechanisms, more people will be able to enjoy the dividends of development, thereby reducing their concerns about potential risks and impacts. Third, efforts must continue to diversify economic and industrial development while strengthening the momentum for innovation. These measures will create more income sources for residents, broaden their development opportunities and provide more possibilities for achieving common prosperity.

Overall, the increase in China’s household income is a key indicator of the country’s high-quality development and a vivid representation of the improved living standards of the people. To sustain this growth, China must drive industrial upgrading, refine income distribution and promote regional development. The government, businesses and society must collaborate to ensure that economic gains benefit everyone, advancing common prosperity.