Only 20 years ago, "Wan Yuan Hu" (a family with an annual income of
10,000 yuan) represented the mostly much admired, nouveau riche of
Chinese society. Times have now changed so much that this is now
thought of as a low income.
Rapid economic development has led to two new measures of success.
These are the "Shi Wanyuan Hu" (100,000 yuan) and the "Bai Wanyuan
Hu" (1,000,000 yuan).
The 10,000 yuan income level is now in the mainstream of personal
income tax while the 100,000 yuan level represents the nation's top
decision-makers in various walks of life.
Let's take a look at lifestyles in China's cities in the year 2002
and see how they relate to income.
UPS AND DOWNS ON 10,000 YUAN A YEAR
He
has worked since graduation in an unremarkable inland city. So far,
the economic ripple emanating from the coast has barely arrived. On
his monthly salary of 800 yuan, life and work follow a gently
rhythm.
Office
He
won't be late but you won't catch him rushing in to start work
early. Arriving at 8:00am, his working day starts with breakfast.
This might be a steamed bun or deep-fried dough sticks bought in
the street and carried in to be taken with a cup of tea and the
morning paper. He would read such publications as People's
Daily, Reference News, Chinese Youth Daily or
perhaps a local paper. About 8:30, he starts work.
Lunch is in the dining hall and costs 4 yuan. Married colleagues
are more likely to go home, taking advantage of the two hour break
at noon.
Our 10,000 yuan man is single and prefers to stay in the unit over
lunch. There he will mix with colleagues in the same income
bracket. He may complain a bit about work but he won't quit the
job.
In
the afternoon, some colleagues will leave early to take their
children home from kindergartens and then cook the evening meal.
During office hours, it is taken for granted that one should drop
in to meet friends in other offices in the work unit. It's nice to
be seen to be sociable.
Senior managers consider formal meetings to be the key
communication tool for cascading information. Unfortunately the
meeting may lack a receptive audience unless it is related to the
really interesting issues like job rotations or salary.
He
will seldom have the opportunity to travel on business. The chance
of a trip to Beijing or Shanghai would be competed for fiercely
should it be up for grabs. However, it's all worked out quite
equitably on the basis of age, so one just waits one's turn.
For those who have had their turn, the trip will be recalled even
years later with conversation pieces starting, "When I was in
Beijing ." Not an entirely tactful approach when considered from
the viewpoint of those who have not yet made a trip by plane never
mind visited the capital.
Income and Benefits
His 800 yuan salary is paid at the beginning of the month after
deduction of housing costs. Gas cylinders might also be provided as
a benefit but these are only for colleagues who are married or have
worked in the unit for a full five years. Though basic salary may
not be generous, there are extra payments for heat in summer and
cold in winter. Then there are payments both in cash and in kind to
mark the principal holidays such as Labor Day on May 1st, Moon
Festival on Aug 15 of the traditional Chinese lunar calendar and of
course New Year's Day. The Spring Festival too brings an annual
bonus.
Ninety percent of his peer group lives in apartments provided by
the work unit. The others are in dormitory accommodation, two or
three to a room at a monthly cost of 3 yuan (yes that really is a
cost of less than 40 cents).
For an employee of a state-owned work unit, access to training or
the chance to join one's line manager on a business trip is
regarded as a privilege.
Primary medical care is available in the work unit's own clinic at
just 5 percent of cost. The unit will reimburse the full cost of
hospital treatment should serious illness make this necessary.
Everyone is allocated five shower vouchers each month.
Spending It
If
we were to look at his world through his underpants, then the
10,000 yuan lifestyle comes in at around a modest 5 yuan a pair.
But our hero's wardrobe will also be graced with a few famous brand
name pairs. On top of this he will have suits costing several
hundred yuan. He frequents the wholesale market, the supermarket
and the local grocery store.
He
avoids brand names unless they are in sales or he might buy fakes
instead. If he visits the big-name franchised stores he may make a
show of checking out the merchandise but he'll soon leave without
buying.
He
must have a mobile phone but takes good care to keep his bill under
100 yuan a month. No need to get a fashionable new ring tone. His
long distance calls are via discount "phone cards." He never smokes
but if he did it would be the cheap ones at three to five yuan a
packet.
He
travels mostly by bike, sometimes by bus and seldom by taxi. When
he gets together with his friends in the neighborhood, they take
turns to pay the bill instead of going Dutch. Any good news will be
taken as the occasion to invite friends for a meal.
A
gift of 60 yuan would be the norm when a colleague gets married. A
friend would get say 100 to 200 yuan. The usual time for babies to
come along is in the first year or two of marriage. New fathers
have to wash cloth nappies as they cannot afford disposable
diapers.
He
buys books in areas that particularly interest him. This is however
far from the start of a reading habit which has to be regularly fed
with expensive newspapers and magazines.
He
goes to bed regularly at a sensible time though occasionally he may
stay up late to play cards. He may sometimes drop into an Internet
Cafi. Some habits need not be expensive at all and in the evening
he may take his girlfriend for a walk. Alternatively they may watch
TV, go to a cinema or perhaps just enjoy each other's company
sitting quietly together.
After several years of this prudent lifestyle he will have a year's
salary of 10,000 yuan safely tucked away in his bank account. For
the milestone financial events in life like his wedding or house
purchase he knows he can rely on his parents to help.
State of Mind
Life is relaxed, and well balanced with a sufficiency of food and
clothing, friendly colleagues and a warm and caring family. Life is
laid out according to a predictable pattern. It is a good life,
healthy in mind and body (a survey has revealed that the happiest
people in China are in the salary range 500 to 1,500 yuan per
month).
Occasionally our 10,000 yuan man feels a bit depressed and longs
for a change perhaps with a new life in one of the booming cities.
Then he thinks of the price he would have to pay and when he
remembers how comfortable he really is, he puts such thoughts to
the side.
ACHIEVEMENT AND PRESSURE ON 100,000 YUAN A YEAR
Here is a professional with a career plan and a monthly salary of
8,000 yuan. Expressions to suggest an overview of his lifestyle
could be well-educated, high IQ, high income, high pressure and
fast moving.
Career
His working week must be flexible and duty will often call on him
outside of regular hours. From the time he arrives in the office he
works like a driven man. So what drives him? Well his boss will
surely be keeping an eye on him and his clients seem to watch his
every move. There is also of course that rather important matter of
performance related pay.
He
maintains a balance between familiarity and respectful distance in
his working relationships. His style of communication is business
like and is characterized by efficiency and a sense of purpose. He
makes good and frequent use of Fax and Internet. His world operates
to a strict timetable where delay will lead not only to financial
loss but also to loss of face for himself and his organization.
Like others in his other 100,000 yuan peer-group, he uses the
Internet as a tool to optimize his information flows and make best
use of his time. He is a frequent flier though his journeys are not
for pleasure but to pursue business opportunities, meet colleagues
and source the information he needs to achieve prominence in his
field. Success will lead to even greater opportunities. This work
pattern is irregular and over work is all too common.
There are of however, advantages in the fast lane and his
colleagues will often buy take-away meals or eat out in good
restaurants. A special favorite is trying out specialties in newly
open restaurants.
He
devotes most of his waking hours to work and is well satisfied with
his income. His professional skills are his "rice bowl" and his
intellect is his "working capital." For his rivals he looks not
just to his immediate colleagues but also to other specialists in
his field all across China. He studies hard in pursuit of
self-improvement and so his health suffers. Long years of effort
have instilled a strong work ethic and now he could not give way to
laziness even if he tried.
He
thinks it is reasonable to expect remuneration commensurate with
the value he can add to his organization. He might well move on to
another job if he thought his salary was in any way unfair.
Changing employers is quite routine at his level and he can fit
easily into a new environment. He will already have experience of
being headhunted. Thought it is easy for him to move to a new
employer, he cannot easily move out of his specialist field.
He
finds it difficult to separate life outside work from life at work.
He does not have much time for his family and may even drift into
an office romance.
Meetings are a matter of routine and no matter how much of an
introvert he may be by nature he must work at developing his
communication and cooperative skills.
Income and Benefits
His remuneration package includes both basic salary and a monthly
performance bonus. Annual salary increments would not be unusual.
He is at an income level that attracts the attention of the tax
authorities and income tax is deducted on a monthly basis.
Benefits like opportunities for travel and training vary from
company to company. His housing will be provided or he will have
his rent reimbursed. He may even have daily travel, meal and
telephone expenses paid. His traveling allowances will be more
generous than those of government officials. He can expect medical
insurance and retirement benefits and may have an equity interest
in the business.
Spending It
He
is a dedicated follower of fashion and is sensitive to the "right"
brand names. He has well-developed personal tastes in clothing,
daily necessities and for where he will socialize, eat and shop.
Even his home is an expression identity as he can afford to buy the
house he really wants when it comes on the market. It will be in a
good area and decorated according to his personal taste. He is fond
of travel and will take lots of photographs to record his trips. He
is able to travel abroad but only, of course, if time permits.
He
is a regular reader of his favorite magazine and buys a newspaper
every day. He will chat with his friends on his mobile phone until
the battery runs out. At the weekend he may go to a concert or
visit a friend in a nearby city. He is a member of a club and
belongs to a particular social circle. At the weekend he may go to
a concert or visit a friend in a nearby city. At home he enjoys the
quality of DVD and VCD.
He
is a cardholder with a wallet full of plastic. He has a level of
personal savings which allows him to spend without counting the
cost. He uses the subway and taxi's every day but plans to buy a
car soon. He understands the essentials of money management like
trading stocks and shares and foreign currency exchange. He may
dabble in a football lottery.
For nightlife he has plenty options and may chose a bar, Karaoke,
late-night shopping or even just stay at home. He regards nightlife
as an essential antidote to the pressures of work. He will go to
bed late after a day well filled by both work and play.
State of Mind
Achievement and stress are side by side. On the one hand his
self-image is one of career success and quality of life and he
considers himself to be one of an elite. On the other hand pressure
of work engages all his capabilities and energy. Daily he faces
both opportunity and challenge. His world is between rich and poor.
He will probably never be a millionaire no matter how hard he
tries. However, he knows for sure that he could become poor if he
loses his job.
LIFE AT THE TOP ON 1,000,000 YUAN A YEAR
She might be the boss of a private company, the CEO of an IT
company or the chair of the board of directors of a listed company.
Her average salary is over 80,000 yuan a month.
Risk-taking and pressure of work at this level keep her in a
continual state of high alert. She is responsible not just for the
performance of her team but for the whole enterprise.
Career
Her constant focus is on decision-making and management
responsibilities and there is no clear boundary between time for
private and corporate life.
She looks outwards from the organization, first towards the rest of
China and then beyond to the world as a whole. She is quite at home
in the air as she flies wherever and whenever she must to meet key
business associates. A personal assistant handles routine matters
for her. Her own future is closely tied up with the development and
fate of the company.
Her public demeanor must be businesslike 100 percent of the time.
She must appear to be on duty at all times and her outside
interests are kept well out of sight. Sometimes she faces the press
cast in a public relations role.
Income and Benefits
Her reward comes in a mix of salary, share options and various
performance-related incentives. If the "hard-ware" of her package
is represented by her car, house and communications equipment, then
her personal assistant and driver are the "soft-ware." As a key
decision-maker she is provided for at a level which means there is
little need to worry about her personal finances.
Spending It
With limited leisure time available for shopping, she relies on the
brand names she knows work well for her. Her social circles tend to
be connected with business and it is these friends who will
influence her in making consumer choices.
It
would be a real luxury just to be able to watch TV for a whole
evening. But it would be no luxury at all to spend thousands of
yuan on a club membership. She will not be the first to rush out
and buy a new technical innovation. She would rather wait a little
for the second wave with all the improvements already built in.
Because her work occupies so much of her time, she tries to make up
for this with generous gifts for family and friends. As a consumer
she cares more about quality of service than about price and would
rather be a "VIP Cardholder." Fees at her keep-fit club are above
average but she feels this is money well spent as she values the
exclusive environment.
State of Mind
Her deepest concerns are for her organization and she lives to
work. Her sense of achievement is measured in terms of leading the
company through a time of rapid development and building a
competitive team. When she complains it won't be about her
lifestyle but about the constraints which hinder corporate
development. She is at the same time one of the main contributors
to wealth in society and one of its principal owners.
(china.org.cn by Zheng Guihong, July 10, 2002)