ttt222 Post time 2013-3-8 17:43:08

How China's richest man sees the wealth gap


Beverage tycoon Zong Qinghou said achieving common prosperity is not a distant dream for China, as the government has moved to narrow the wealth gap via secondary distribution.

Crowned the richest billionaire on the Chinese mainland by the Hurun Research Institute again this month, Zong stands out among the country's nearly 3,000 national legislators with his 82-billion-yuan fortune he accumulated while running the country's largest beverage group, the Wahaha. (82 billion yuan is equal to 13.177 billion U.S. dollars.)

http://www.medindia.net/afp/images/China-politics-wealth-gap-152867.jpg

"I, personally, do not sense any public hostility toward wealth," the 68-year-old legislator said on Thursday in response to a question from the media on China's wealth gap on the sidelines of the ongoing annual session of the 12th National People's Congress, the top legislature.

The annual per capita disposal income of China's urban residents stood at 24,565 yuan in 2012, while the per capita net income for rural residents was just 7,917 yuan.

"I started selling beverage, made no power-for-money deals and never profiteered. I've helped people get rich, including my employees, suppliers and lots of farmers, as my business is involved in the deep processing of farm produce," he said.

"I don't live a luxurious life. My life is as simple as many Chinese," he added.

Zong said only a few have accumulated wealth through power-for-money deals.

"Most Chinese have become better off through diligent work. Those who get wealthy must always remember where they came from and make continuous efforts to help others eliminate poverty," Zong said.

When China started its reform and opening-up drive in the late 1970s, letting some people get rich first and then helping others to achieve common prosperity has been regarded as a viable strategy for China to pull people out of poverty.

http://images.china.cn/attachement/jpg/site1007/20110307/001fd04cf34a0edead9f17.jpg

However, when China released its first official rich-poor index since 2000 in mid-January, it painted a far-from-rosy picture of what the country needs to do to bridge the wealth gap.

Statistics from the National Bureau of Statistics show that the country's Gini coefficient reached 0.474 in 2012, higher than the warning level of 0.4 set by the United Nations.

NBS chief Ma Jiantang has said the index has retreated gradually since peaking at 0.491 in 2008, dropping to 0.49 in 2009, 0.481 in 2010 and 0.477 in 2011.

At its 18th National Congress in mid-November, China's ruling party, the Communist Party of China, announced that it aims to double the 2010 GDP and per capita income for both urban and rural residents by 2020.

In early February, the State Council, China's cabinet, issued a guideline on income redistribution reform, though implementation details have yet to be announced.

To narrow the wealth gap, Zong said entrepreneurs and the wealthy should shoulder their social responsibility and engage in philanthropic work.

"Wealth gaps exist in all countries. China is narrowing its income gap through secondary distribution...I think achieving common prosperity is not a distant dream for the Chinese," he said.


Source: Xinhua

Paul_Ket Post time 2013-3-13 09:39:47

Is not pay attention on Gini's coefficient without other main economic and social categoryes: Gross National Product, level of unemployment, Export-Import Balance, renovation of fixed assets, criminality's level.

robert237 Post time 2013-3-13 09:50:20

How much were the Chinese over charged for these beverages so one person could become obscenely rich?
He should be taxed until his wealth does not exceed 50 million USD.
What can't he eat and where can't he live with 50 million USD? If he thinks this is unfair then he has some
serious mental health issues and should be hospitalized.

Paul_Ket Post time 2013-3-13 09:52:38

I seem, that calculate of Ginni's coefficient is not include shadow bussines. Therefore, when Global Wealth Report made analysys for Russia in 2012, they calculated Ginni's coefficient 0.84. But. it's impossible, because they used for analysys only official information without shadow sector. Shadow sector of economics is not criminal economics (like a kidneppers, assassing, or other bussines on the blood). Shadow sector - is person's bussines activity without taxes. Then, if you calculate and understand shadow sector of economics and renovate Ginni's coefficient, using anformation about shadow bussines, - therefore Ginni's coefficient must be lower.

Paul_Ket Post time 2013-3-13 10:08:40

robert237 Post time: 2013-3-13 09:50 static/image/common/back.gif
How much were the Chinese over charged for these beverages so one person could become obscenely rich ...

Ohhh, no
If you increase taxes, all rich people go away from your country (France, for example. Famous france actore Gérard Depardieu left France and get citizenship of Russia, because new government of France decided to increase taxes for rich people. Now Gérard Depardieu pay 13% tax in Russia budget, but not pay 100% tax in France's budget for amount more than 1 000 000 euro per year){:1_1:}

robert237 Post time 2013-3-13 10:11:28

Paul_Ket Post time: 2013-3-12 18:08 static/image/common/back.gif
Ohhh, no
If you increase taxes, all rich people go away from your country (France, for example. Fa ...

Good riddance to these parasites. You can take them all in whatever nation you live in.
China should relieve them of all the money they stole from the people before letting them leave.

changamullah Post time 2013-3-13 11:38:16

robert237 Post time: 2013-3-13 10:11 static/image/common/back.gif
Good riddance to these parasites. You can take them all in whatever nation you live in.
China shou ...

Yes .... send them all to the US. California preferably. I hear San Jose would be perfect for them! :D
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