China is classified as an upper-middle-income country.
Understanding China's Economic Status
Classifying a country as simply "poor" or "rich" can be overly simplistic. The reality is more nuanced, reflecting various stages of economic development. Based on international standards and economic indicators, China falls into a specific category that positions it between low-income and high-income economies.
China's Current Classification
According to the World Bank, China is currently designated as an upper-middle-income country. This classification is based on its Gross National Income (GNI) per capita, placing it above lower-income nations but below high-income countries.
- Upper-Middle-Income: Countries with a GNI per capita between a specific range set annually by the World Bank.
- Not High-Income: China has not yet reached the threshold to be considered a high-income economy.
- Not Low-Income: It is significantly above the income levels of low-income countries.
This status reflects decades of rapid economic growth and development, lifting hundreds of millions of people out of poverty and transforming the country's economic landscape.
Poverty Levels in China
While China has achieved significant economic progress, including the eradication of extreme poverty as defined by one international standard, economic challenges and income disparities persist.
- Extreme Poverty Eradicated: China successfully eliminated extreme poverty (defined by a very low daily income threshold) in 2020.
- Upper-Middle-Income Poverty Line: Despite this achievement, a notable portion of the population still lives below the poverty line relevant to its upper-middle-income status.
- Data from 2021: An estimated 17.0 percent of the population lived on less than $6.85 a day (in 2017 Purchasing Power Parity terms) in 2021. This threshold represents the World Bank's poverty line for Upper-Middle-Income Countries (UMICs).
This data indicates that while the most severe forms of poverty have been addressed, a significant number of people still face economic hardship when measured against the standards of an upper-middle-income nation.
Key Indicators Summary
| Indicator | China's Status | Reference Detail |
|---|---|---|
| Overall Economic Classification | Upper-Middle-Income Country | Explicitly stated in reference |
| Extreme Poverty | Eradicated (by 2020 standard) | Explicitly stated in reference |
| Population below UMIC Poverty | Significant (17.0% in 2021) | Lived on < $6.85/day (2017 PPP), the UMIC poverty line in 2021 |
In conclusion, while China is no longer a poor country and has eradicated extreme poverty, it is not yet a high-income or "rich" country by international standards. It sits in the upper-middle-income bracket, a phase of development where average incomes are higher, but challenges like income inequality and a significant population living just above extreme poverty persist.
