The Workers' Movement in China - China Labour Bulletin
The Workers' Movement in China - China Labour Bulletin
The Workers' Movement in China - China Labour Bulletin
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
SOCIO-ECONOMIC AND LEGISLATIVE DEVELOPMENTS, 2007-08 11<br />
yuan <strong>in</strong> 2007. By 2008, it had reached 1,000 yuan. <strong>The</strong> global f<strong>in</strong>ancial<br />
crisis however put the brakes on this trend. On 17 November 2008,<br />
the M<strong>in</strong>istry of Human Resources and Social Security issued a circular<br />
which called for the suspension of all m<strong>in</strong>imum wage <strong>in</strong>creases<br />
until the economic situation improved.<br />
Accord<strong>in</strong>g to official statistics, the disposable <strong>in</strong>comes for both rural<br />
and urban households cont<strong>in</strong>ued to grow steadily until late 2008. In<br />
2007, the average annual <strong>in</strong>come for rural residents was 4,140 yuan,<br />
an <strong>in</strong>crease of 9.5 percent over the previous year, after allow<strong>in</strong>g for<br />
<strong>in</strong>flation. In 2008, rural <strong>in</strong>come <strong>in</strong>creased by another 8.0 percent <strong>in</strong><br />
real terms to reach 4,761 yuan. <strong>The</strong> average disposable <strong>in</strong>come for<br />
urban residents <strong>in</strong> 2007 equalled 13,786 yuan, up 12.2 percent <strong>in</strong> real<br />
terms, and <strong>in</strong>creased by a further 8.4 percent <strong>in</strong> 2008 to reach 15,781<br />
yuan.<br />
A wide-rang<strong>in</strong>g survey carried out between May and September 2008<br />
by the Ch<strong>in</strong>ese Academy of Social Sciences clearly showed that the<br />
gap between the rich and the poor <strong>in</strong> Ch<strong>in</strong>a cont<strong>in</strong>ues to grow. In<br />
2007, the per capita annual household <strong>in</strong>come of the top 20 percent of<br />
urban and rural residents was 17 times higher than the lowest 20 percent.<br />
Average annual household <strong>in</strong>come levels <strong>in</strong> eastern Ch<strong>in</strong>a were 2.03<br />
times higher than <strong>in</strong> western Ch<strong>in</strong>a, and 1.98 times higher than <strong>in</strong> central<br />
Ch<strong>in</strong>a. <strong>The</strong> most press<strong>in</strong>g concerns cited by respondents to the<br />
survey were; “ris<strong>in</strong>g prices” (63.5 percent), “difficulty and cost of gett<strong>in</strong>g<br />
medical treatment” (42.1 percent) and the “excessive <strong>in</strong>come gap”<br />
(28 percent). 10<br />
In response to these concerns, <strong>in</strong> 2007, the central government expanded<br />
the provision of the m<strong>in</strong>imum subsistence allowance ( <br />
!) to <strong>in</strong>clude, for the first time, rural residents <strong>in</strong> all regions of<br />
10 Ch<strong>in</strong>ese Academy of Social Sciences. “ !"#$%&'()*+,- -<br />
2008_2009 !"#$%&'()*+” (Turn<strong>in</strong>g the tide: New Challenges fac<strong>in</strong>g<br />
Ch<strong>in</strong>a’s social development-Social Analysis and Forecasts 2008-2009) <strong>in</strong> Ru X<strong>in</strong> (<br />
), Lu Xueyi ( ), Li Peil<strong>in</strong> ( ) eds.-<strong>in</strong>-chief 2009 !"#$%&'<br />
(Analysis and forecasts of the state of Ch<strong>in</strong>ese society, 2009), Beij<strong>in</strong>g: Social<br />
Sciences Academic Press (Ch<strong>in</strong>a), 2008, 1-14