OPINION> FROM THE CHINESE PRESS
A veritable GDP benefits all
(China Daily)
Updated: 2009-05-20 07:41

According to an expert's prediction, China's GDP will surpass that of Japan by the end of this year. The prediction has become a sensation in cyberspace. However, the insidious threats behind this borrowed boom mustn't be neglected, says an article in China Youth News. Excerpts:

If the prophecy China's GDP surpassing that of Japan is fulfilled as forecast, will our standard of living, including housing, healthcare and education, also reach the level of No 2? Do Chinese people lead a more affluent life than those in Switzerland, which ranks lower than China in the GDP chart?

GDP total differs a lot from GDP per capita. In 2008, Japan's GDP per capita is $42,480, thirteen times that of China's $3,260. In this respect, China still has a long way to go to narrow the huge gap.

Actually China owes a great part of its economic prosperity to foreign investments. Despite the handsome "Chinese GDP", the resulting profits and incomes are mostly exported to foreign countries via products.

Admittedly, with the progress of economic integration, China benefits from a thriving global GDP growth. Yet the point is that the so-called "Chinese GDP" doesn't belong to China solely, nor can one say that every Chinese benefits from it.

The widening wealth gap is another threat. The Gini Coefficient has passed the cordon of 0.4 since 1994 and rose to 0.48 in 2007. A report of World Bank said 70 per cent of Chinese wealth is in the hands of only 4 percent of its population. With most people below the average line, the high GDP is none other than a borrowed boom.

As some people say, China is not strong but fat. Our economic development is mainly attributed to cheap labor and the exploitation of the environment. Chinese people are now paying the price for the uneven development in many ways, including environmental pollution, strange diseases, poor products quality and bare subsistence. In the face of these cruel facts, it would be acting blind, and no doubt generating profound harm, to play a game of numbers and celebrate a gorgeous GDP figure.

(China Daily 05/20/2009 page8)