China Is The Second Large Economy

1484 Words6 Pages
Nowadays, everyone says China is the second large economy in the world. In 2015, GDP of China reached $11,385 billion with a growth rate of 6.9%. Some people predict that one day GDP of China will exceed GDP of U.S. and that day will come soon. Unquestionably, China is growing rapidly and the Chinese economy is doing well, but does this mean the Chinese citizen is at high utility level? The answer is no. The fact is that most of the Chinese citizens today are facing the problem of unbalanced income and prices, which means the living costs are too high while the salary rate is relatively low. Besides, China is developing rapidly these years, Chinese people are demanding a better life which they want to eat better food, have a better education, and live in a better house. Therefore, people in China today are confronting the problem. Why is this problem occurring? Other than the high population rate of China, there are few more reasons: 1) high tax rate, which cause high living expenses; 2) low social benefits, which mainly embodied in high medical expenses; 3) unaffordable housing price, which some people cannot even afford a house with mortgage, other people can only barely afford it but with overload pressure; 4) low salary rate due to variety reasons; and 5) export too much products to U.S. causes inflation which decreases RMB purchasing power, thus, prices for goods and services in the market increasing and people can buy less with their salary. According to current
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