Rapid Growth in Residents' Income and Remarkable Improvement in Their Living Quality

Rapid Growth in Residents' Income and Remarkable Improvement in Their Living Quality 

—Series Report XIX on the Economic and Social Development Achievements since the 18th CPC National Congress 

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments have adhered to the people-centered development philosophy, made safeguarding and improving people's livelihood the fundamental starting point and final objective of their work, conscientiously implemented the strategic goal of building a moderately prosperous society in all aspects, and introduced and implemented a series of policies and measures to benefit and enrich the people, with a faster growth in residents' income, a continuous improvement in the income structure, a narrowing of the income gap between urban and rural areas and regions, a sustained increase in residents' consumption levels and a steady improvement in their living quality. 

I. Rapid Growth in Residents' Income and Continuous Improvement in Income Structure 

Since the 18th CPC National Congress, all regions and departments have continued to strengthen the implementation of the employment-first policy, and various measures to promote the growth of residents' income have been taking effect one after another, with residents sharing more dividends from economic and social development, maintaining a relatively rapid growth in residents' income and continuously optimizing the income structure. 

(I) A faster growth in residents' income to keep pace with economic growth 

In 2021, China's per capita disposable income was RMB 35,128, an increase of RMB 18,618 from RMB 16,510 in 2012, with a cumulative nominal growth of 112.8% and an average annual nominal growth of 8.8%. After deducting price factors, the cumulative real growth was 78.0%, with an average annual real growth of 6.6%. The growth of residents' income was basically in line with economic growth, and the per capita disposable income of residents from 2013 to 2021 grew at an average annual real rate 0.5 percentage points faster than that of GDP per capita. 

(II) Diversified sources of residents' income, with increasing shares of net transfer and property income 

All regions and departments have effectively implemented various employment and entrepreneurship policies, continuously increased efforts to safeguard people's livelihood, broadened the channels for residents to increase their income through a multi-pronged approach, further optimized the business environment, improved the social security system, and strengthened the mechanism for the distribution of various production factors. The net income from transfer and property of the residents in China is growing rapidly, with increasing shares. In 2021, the net transfer income per capita of the residents in China was RMB 6,531, an increase of [1] 139.4% over 2012, with an average annual growth of 10.2%, and the proportion of the disposable income per capita increased from 16.5% in 2012 to 18.6% in 2021. In 2021, the net property income per capita was RMB 3,076, an increase of 149.8% over 2012, with an average annual growth of 10.7%, and the proportion of the disposable income per capita increased from 7.5% in 2012 to 8.8% in 2021. The per capita wage income and net income from operations have maintained rapid growth. In 2021, the per capita wage income reached RMB 19,629, an increase of 109.3% over 2012, with an average annual growth of 8.6%; the per capita net income from operations reached RMB 5,893, an increase of 85.8% over 2012, with an average annual growth of 7.1%. 

II. Continuous Optimization of Income Distribution Pattern with a Narrowing Gap in Residents' Incomes 

Since the 18th CPC National Congress, the Party and the government have attached great importance to the issue of income distribution, striving to deepen the reform of the income distribution system, continuing to narrow the income gap between residents in urban-rural areas and regions, and improving the income distribution pattern significantly. 

(I) Sustained narrowing urban-rural gap, and declining urban-rural income ratio year on year 

With the promotion of the rural revitalization strategy and the policies to eliminate poverty, the per capita disposable income of rural residents continues to grow faster than that of urban residents. In 2021, the per capita disposable income of urban residents was RMB 47,412, an increase of 96.5% over 2012; and that of rural residents was RMB 18,931, an increase of 125.7% over 2012. From 2013 to 2021, the average annual income growth of rural residents is 1.7 percentage points higher than that of urban residents. The urban-rural ratio of per capita disposable income in 2021 is 2.50 (taking the income of rural residents as 1), down 0.38 from 2012, and the relative income gap between urban and rural residents continues to narrow. 

(II) Faster growth of residents' income in the central and western regions to narrow the relative income gap between regions 

With the in-depth implementation of the master strategy for regional development, the growth rate of residents' income in the central and western regions is significantly faster than that of other regions. In 2021, the per capita disposable income of residents in the eastern, central, western and northeastern regions reached RMB 44,980, RMB 29,650, RMB 27,798 and RMB 30,518 respectively, representing cumulative growth of 110.1%, 116.2%, 123.5% and 89.5% compared to 2012, with an average annual growth rate of 8.6%, 8.9%, 9.3% and 7.4%. The average annual growth rate of residents' income in the western region was the fastest, followed by that in the central region. The average annual growth rate of residents' income in the western region was respectively 0.7, 0.4 and 1.9 percentage points higher than that of the eastern, central and northeastern regions. The ratio of the per capita income of residents in the eastern, central and northeastern regions to that in the western region (taking the residents' income in the western region as 1) reduced from 1.72, 1.10 and 1.30 in 2012 to 1.62, 1.07 and 1.10 in 2021, respectively. 

III. Continued Improvement in the Residents' Consumption Level with Optimized and Upgraded Consumption Structure 

Since the 18th CPC National Congress, all regions and departments have conscientiously implemented various policies and measures to expand residents' consumption, continued to improve the consumption market environment, effectively promoted the growth of residents' consumption, thus achieving sustained improvement in the consumption level of urban and rural residents, and optimizing and upgrading the consumption structure. 

(I) Rising consumption levels and increasing consumption power 

In 2021, the per capita consumption expenditure of national residents in China was RMB 24,100, an increase of RMB 12,046 from RMB 12,054 in 2012, with a cumulative nominal growth of 99.9% in per capita consumption expenditure and an average annual nominal growth of 8.0%. After deducting price factors, the cumulative real growth was 67.4%, with an average annual real growth of 5.9%. According to urban and rural areas, the per capita consumption expenditure of urban residents was RMB 30,307, representing a cumulative nominal growth of 77.2% over 2012 and an average annual nominal growth of 6.6%, with a cumulative real growth of 47.9% and an average annual real growth of 4.4% after deducting price factors; the per capita consumption expenditure of rural residents was RMB 15,916, representing a cumulative nominal growth of 138.7% over 2012 and an average annual nominal growth of 10.2%, with a cumulative real growth of 99.7% and an average annual real growth of 8.0% after deducting price factors. 

(II) Gradually decreased Engel's coefficient and improved quality of life 

In 2021, China's per capita expenditure on food, tobacco, and alcohol was RMB 7,178, an increase of 80.2% over 2012, with an average annual growth rate of 6.8%. The proportion of expenditure on food, tobacco and alcohol to consumption expenditure (Engel's coefficient) dropped from 33.0% in 2012 to 29.8% in 2021, a decrease of 3.2 percentage points. By urban and rural areas, the per capita expenditure on food, tobacco and alcohol of urban residents was RMB 8,678, an increase of 58.6% over 2012, with an average annual growth rate of 5.3%; the Engel's coefficient of urban residents dropped from 32.0% in 2012 to 28.6% in 2021, a decrease of 3.4 percentage points. Rural residents' per capita expenditure on food, tobacco and alcohol was RMB 5,200, an increase of 117.2% over 2012 and an average annual growth of 9.0%; the Engel's coefficient of rural residents dropped from 35.9% in 2012 to 32.7% in 2021, a decrease of 3.2 percentage points. The decreased Engel's coefficient marks a further improvement in the living standard of residents. 

(III) Increasing development-oriented and enjoyment-oriented consumption with optimization and upgrading of consumption structure 

With the raising of residents' income level and the continuous expansion of the scope of consumption, residents' consumption structure has continued to undergo optimization and upgrading, and their consumption on transportation, children's education and medical services has increased rapidly, with a gradually increasing proportion of consumption expenditure on services. In 2021, China's per capita expenditure on transportation and communications was RMB 3,156, an increase of 117.5% over 2012, or an average annual growth rate of 9.0%, 1.0 percentage points faster than that of the national per capita consumption expenditure, and accounting for 13.1% of the total per capita consumption expenditure, up 1.1 percentage points from 2012. In 2021, China's per capita expenditure on education, culture and entertainment was RMB 2,599, an increase of 106.0% over 2012, or an average annual growth rate of 8.4%, 0.4 percentage points faster than that of the national per capita consumption expenditure, and accounting for 10.8% of the total per capita consumption expenditure, up 0.3 percentage points from 2012. The national per capita consumption expenditure on health care in 2021 was RMB 2,115, an increase of 152.3% over 2012 and an average annual growth rate of 10.8%, 2.8 percentage points faster than the average annual growth rate of the national per capita consumption expenditure and accounting for 8.8% of the total per capita consumption expenditure, an increase of 1.8 percentage points over 2012. China's per capita consumption expenditure on services in 2021 accounted for 44.2% of the total per capita consumption expenditure, 4.5 percentage points higher than that in 2013. 

IV. Sustained Improvement in Residents' Quality of Life and Significant Improvement in Their Living Environment 

Since the 18th CPC National Congress, along with the improvement of residents' income and consumption level, a steady upgrade of durable consumer goods for households has taken place. At the same time, the Party and the state have improved people's livelihood focusing on accelerating the construction of local infrastructure, and made efforts to promote equal access to basic public services, increase the coverage of public facilities, and comprehensively improve the living environment of urban and rural residents. 

(I) Continuous upgrading of durable consumer goods 

With the continuous improvement of residents' income level, further enhancement of their consumption ability and acceleration of consumption upgrading, the number of major durable consumer goods owned by urban and rural residents is increasing, and cars, air conditioners and mobile phones are becoming increasingly popular in households. In 2021, the ownership of family cars per 100 households in urban and rural areas was 50.1 and 30.2 on average, 132.7% and 358.3% higher than in 2012, respectively; the ownership of air conditioners per 100 urban and rural households was 161.7 and 89.0 on average, 27.5% and 250.8% higher than in 2012, respectively; and the ownership of mobile phones per 100 households was 253.6 and 266.6 on average, 19.3% and 34.8% higher than in 2012, respectively. The number of basic household appliances owned by rural residents has increased at a faster rate, making life much more convenient. In 2021, the average ownership of refrigerators per 100 rural households reached 103.5, 53.8% higher than in 2012; and the average ownership of washing machines per 100 households reached 96.1, 42.9% higher than in 2012. 

(II) Significant improvement in living conditions and quality 

With the renovation of rundown urban areas and dilapidated houses in poverty-stricken areas, and the construction of low-rent and affordable housing, the living conditions of urban and rural residents have significantly improved. In 2021, the proportion of urban and rural residents living in housing made of reinforced concrete or with brick-concrete structure was 96.2% and 77.6%, up 4.4 and 21.9 percentage points respectively from 2013; the proportion of urban and rural residents with access to safe drinking water was 99.5% and 97.0%, up 1.5 and 22.3 percentage points respectively from 2013; the proportion of households in rural and urban areas with no difficulties in obtaining drinking water was 99.4% and 97.6% respectively, up 2.7 and 12.0 percentage points from 2013; and the proportion of urban and rural households with piped water supply was 98.7% and 92.7%, respectively, up 1.7 and 29.4 percentage points from 2013. 

In recent years, with the deepening of the toilet revolution in rural areas, the weaknesses in the living environment of rural residents have been addressed, and the sanitary conditions of toilets in both urban and rural areas have improved significantly. In 2021, the proportion of urban and rural residents using sanitary toilets was 97.6% and 82.6%, 8.3 and 47.0 percentage points higher than in 2013 respectively; the proportion of urban and rural residents using flush toilets was 94.9% and 67.1%, 8.0 and 44.9 percentage points higher than in 2013 respectively; and the proportion of urban and rural residents using their own toilets was 97.7% and 96.8%, an increase of 8.0 and 4.2 percentage points respectively compared with 2013. 

(III) Continued improvement in the living environment and quality 

The coverage of the "four connections" has been widened. By 2021, full electricity coverage has been basically achieved in all communities [2] nationwide. All communities in urban areas had telephones and cable TV signals, and 99.9% of the communities with households were accessible by roads, 0.7 percentage points higher than in 2013. In rural areas, 99.9%, 99.8% and 99.9% of natural villages with households had access to telephones, cable TV signals and roads respectively, an increase of 1.3, 10.6 and 1.6 percentage points compared to 2013. 

In 2021, 96.6% of communities with urban households had purified drinking water under centralized treatment, and 80.4% of natural villages with rural households had purified drinking water under centralized treatment, an increase of 5.3 and 34.8 percentage points respectively compared to 2013. In 2021, 99.1% of communities with urban households had centralized garbage treatments, an increase of 3.3 percentage points compared to 2013; and 95.2% of natural villages with rural households had centralized garbage treatments, an increase of 46.5 percentage points compared to 2013. 

(IV) Improvement in the level of medical and education services 

With the deepening of the policy of integrating urban and rural medical insurance and the comprehensive implementation of the Healthy China initiative, the level of public medical services available to urban and rural residents has gradually improved. In 2021, 87.5% of communities with urban households were equipped with health stations, and 94.8% of natural villages with rural households were equipped with health stations, an increase of 7.8 and 13.2 percentage points respectively over 2013. There has been a marked improvement in the level of education services available to urban and rural residents. In 2021, 99.0% of communities with urban households provided residents with easy access to kindergartens or preschools, 2.3 percentage points higher than in 2013; 99.2% of communities with households provided residents with easy access to primary schools, 2.4 percentage points higher than in 2013. In 2021, 90.1% of natural villages with rural households provided residents with easy access to kindergartens or preschools, 14.4 percentage points higher than in 2013; and 91.3% of natural villages with households provided residents with access to primary school, 10.5 percentage points higher than in 2013. 

Since the 18th CPC National Congress, the people's living standards and quality have made historic progress and all-round improvement. The Party and the people have successfully achieved the First Centenary Goal, completed the building of a moderately prosperous society in all respects on the land of China, and are working hard toward the Second Centenary Goal of building China into a great modern socialist country in all respects. At present, we have a long way to go to make solid progress in promoting common prosperity, consolidate and expand the achievements of poverty eradication and rural revitalization, and continuously improve the living standards of the residents. We should rally more closely around the CPC Central Committee with Comrade Xi Jinping as the core, focus on continuously safeguarding and improving people's livelihood in the course of development, continue to raise the income level of residents, and constantly improve their quality of life, so as to make a new and greater contribution to realizing people's aspiration for a better life and building China into a great modern socialist country. 

Note: 

[1] The following are nominal growth rates if not specifically stated. 

[2] Communities refer to neighborhood committees or communities in urban areas and natural villages in rural areas.