Per capita gross domestic product (GDP) of cities in China varies tremendously, mainly depending on the location of the city. Cities with the highest per capita GDP are mainly to be found in coastal provinces in East China and in South China, like Guangdong province. The poorest cities are located in the still less developed western parts of China, like Gansu province, or in the Chinese rust belt in Northeastern China, like Heilongjiang province.

In 2024, the average annual per capita disposable income of rural households in China was approximately 23,119 yuan, roughly 43 percent of the income of urban households. Although living standards in China’s rural areas have improved significantly over the past 20 years, the income gap between rural and urban households is still large. Income increase of China’s households From 2000 to 2020, disposable income per capita in China increased by around 700 percent. The fast-growing economy has inevitably led to the rapid income increase. Furthermore, inflation has been maintained at a lower rate in recent years compared to other countries. While the number of millionaires in China has increased, many of its population are still living in humble conditions. Consequently, the significant wealth gap between China’s rich and poor has become a social problem across the country. However, in recent years rural areas have been catching up and disposable income has been growing faster than in the cities. This development is also reflected in the Gini coefficient for China, which has decreased since 2008. Urbanization in China The urban population in China surpassed its rural population for the first time in 2011. In fact, the share of the population residing in urban areas is continuing to increase. This is not surprising considering remote, rural areas are among the poorest areas in China. Currently, poverty alleviation has been prioritized by the Chinese government. The measures that the government has taken are related to relocation and job placement. With the transformation and expansion of cities to accommodate the influx of city dwellers, neighboring rural areas are required for the development of infrastructure. Accordingly, land acquisition by the government has resulted in monetary gain by some rural households.

Since 2000, the share of people living in extreme poverty in rural China has been constantly decreasing. In February 2021, the Chinese government announced that - based on the current definition of poverty - all residents in China have been relieved from extreme poverty. In the past, extreme poverty had been more common in western and central parts of China, and in these regions the number of poor households is still considerably higher today.

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This study investigates the alarming rise of urban poverty in China; in particular the patterns of urban poverty and the institutional causes are examined. The researchers look for evidence of institutional innovations that have emerged as individuals and organisations seek to negotiate more secure access to vital civic goods and services. A case study approach was used due to the complexity of the issue and the size of the Chinese urban population. Six cities were chosen and four neighbourhoods in each city were investigated. These cities were distributed in the costal, central and western region respectively, including Guangzhou, Nanjing, Harbin, Wuhan, Kumin, and Xi’an.

Further information is available from the ESRC Award webpage.


Main Topics:

The questionnaire has sections on:

• demographic information
• household income and expenditure
• social benefits/welfare
• housing
• employment situation
• neighbourhood profile
• commuting and relocation

In 2023, the annual per capita gross domestic product (GDP) in different provinces, municipalities, and autonomous regions in China varied from approximately 200,300 yuan in Beijing municipality to roughly 47,900 yuan in Gansu province. The average national per capita GDP crossed the threshold of 10,000 U.S. dollars in 2019 and reached around 89,400 yuan in 2023. Regional economic differences in China The level of economic development varies considerably in different parts of China. Four major geographic and economic regions can be discerned in the country: The economically advanced coastal regions in the east, less developed regions in Northeast and Central China, and the developing regions in the west. This division has deep historical roots reflecting the geography of each region and their political past and present. Furthermore, regional economic development closely correlates with regional urbanization rates, which closely resembles the borders of the four main economic regions. Private income in different parts of China Breaking the average income figures further down by province, municipality, or autonomous region reveals that the average disposable income in Shanghai or Beijing is on average more than three times higher than in Tibet or Gansu province. In rural areas, average disposable income is often only between one third and one half of that in urban areas of the same region. Accordingly, consumer expenditure per capita in urban areas reaches the highest levels in Shanghai, Beijing, and the coastal regions of China.