The China Paradox: World’s Top Factory, But 600 Million in Poverty
Imagine working from 9 a.m. to 9 p.m., six days a week—barely seeing your family, always tired, but still struggling to pay for basic needs. This is the reality for millions of people in China, a country famous for its rapid economic growth and massive factories. But here’s the strange part: even though China is one of the world’s richest countries by total output, nearly half of its people are still poor. (source: World Bank, ILO).
China’s Workers: Among the Hardest Working in the World
Chinese workers are known for their incredible work ethic. In 2024, the average Chinese employee worked about 46 hours every week. That’s much more than the 38 hours worked by the average American. In some industries, especially tech and manufacturing, people follow the “996” schedule—working from 9 a.m. to 9 p.m., six days a week. This is one of the longest workweeks in the world (source: ILO Working Hours, BBC on 996).
Huge Factories, Huge Output-But Low Pay
China is the world’s top manufacturer. In 2023, it produced almost $4.8 trillion worth of goods, which was more than the United States, Japan, Germany, and India combined. But even with all this production, most Chinese workers don’t see much of the money. In 2020, nearly 600 million people-almost half the country-lived on just about $140 a month. Even worse, 220 million people made less than $69 a month. For elderly people in rural areas, the average pension is only about $17 a month, which is barely enough to survive (source: UN Statistics, China Daily Income Stats).
The Illusion of Wealth
You might have seen news stories about Chinese tourists shopping for luxury goods in places like Paris or New York. But these shoppers are just a tiny slice of the population. Because China has so many people, even a small percentage of wealthy individuals can create the illusion that everyone is rich. In reality, most people are still struggling (source: Reuters on Chinese Tourists).
Where Does the Money Go?
If Chinese workers are making so much stuff, why are they still poor? The answer is that most of the money doesn’t go to them. In 2023, the total amount paid in wages was only about 15% of China’s GDP. In richer countries, workers usually get a much bigger share. So, where does the rest of the money go?
- Foreign Aid: China spends a lot of money giving aid to other countries, hoping to gain political support and influence around the world (source: Council on Foreign Relations).
- Military and Security: China has the second-largest military budget in the world. But it spends even more on “stability maintenance”-things like surveillance, censorship, and police to keep control inside the country (source: SIPRI Military Expenditure Database, Jamestown Foundation).
- Government Bureaucracy: A big chunk of the workforce is employed by the government. In 2021, almost one in four workers got their paycheck from public funds. The government’s administrative costs are among the highest in the world (source: Statista China Public Sector).
Corruption and Elite Capture
Another problem is corruption. Some powerful people in government and business take a lot more than their fair share. This means even less money goes back to ordinary workers, making it even harder for them to escape poverty (source: Transparency International).
The Heart of the Problem
To sum it up: Chinese people are some of the hardest workers on the planet, and their country produces more goods than almost anywhere else. But because so much of the wealth is kept by the government or spent on things that don’t help ordinary people, around 600 million Chinese still live on less than $140 a month. This is the paradox of China’s hardworking poor.
