The term "grey income" was coined in China after 1978 when the
country implemented its policy of reform and opening-up. It
describes the significant portion of urban residents' income that
is outside the scope of state supervision and control. While some
of this income is derived from working additional jobs, some of it
is obtained in a more questionable manner. Economists have
identified the four largest grey income industries currently
operating in the country and their findings were published in the
Shanghai Financial News in late March.
Tourism industry
Many Chinese travel agencies ask their tour guides to pay them a
considerable sum of money according to the number of tourists in
the group they are leading. So "taking a commission" in a variety
of ways has become one of the main sources of grey income for most
Chinese guides, the newspaper revealed.
Usually a tourist shop offers 20-50 percent of its shopping
trade volume to tour guides, which is also considered a
"commission" negotiated by the two sides in advance. The store also
has to pay a fee based on the size of the group and a parking fee
to the agency. In return, tour guides use all their skills to
persuade tourists to go shopping in designated stores even if they
are unwilling to do so.
"We're worried to accept any tourist group with the number of
people exceeding 100," explained the boss of a jeweler's shop at
the foot of the Badaling section of the Great Wall near Beijing. "We have to pay a
per-tourist fee and parking fee for the tour guides and travel
agencies even though tourists may not buy anything in my shop," the
boss complained, adding: "I cannot afford to offend travel agencies
otherwise they will no longer introduce any tourist groups to my
shop in the future."
Medical and health care industry
The medical and health care industry is considered the richest
sector in China because it gains the most grey income, the
newspaper disclosed. It has become so commonplace that Chinese
people are not surprised by such things like medical staff taking
hongbao ("red envelope" containing money given privately
as a tip, gift, bonus, or bribe), taking a commission and
moonlighting. Before a surgical operation, a patient's family has
to pay hongbao to medical staff including the operating
surgeon, assistants, anesthetists and nurses. "This is so common,"
said a doctor who was interviewed by the newspaper. "Who dare say
that he or she hasn't accepted any hongbao while examining
his or her own conscience?" he insisted. "A well-known surgeon can
get 5,000-10,000 yuan (US$647-1,294) once being invited to a branch
hospital to do an operation."
Taking a commission from medicine sales is considered another
form of grey income in the medical trade. "When you go to see a
doctor, you'd better dress down as much as possible," said one
doctor. "If the doctor thinks you look rich, he or she would write
a prescription containing the most expensive medicines. Some
doctors even make a thorough inquiry into their patients'
occupations and incomes in order to do this."
Teaching industry
Grey income in the teaching industry comes in all shapes, the
newspaper reported. Teachers increase income by opening
after-school tutoring classes, being invited to deliver academic
reports at high pay, being private teachers, and being part-time
consultants. Opening after-school tutoring classes and moonlighting
are most common.
"I have 12 after-school tutoring classes a week," said a
university professor. "I am worn out both physically and mentally.
It is beyond my power to teach so many classes, but I have to."
The teachers majoring in economics, finance, accounting, law,
and foreign languages, all disciplines closely related to social
application and market demand, have more money-earning
opportunities. "Some teachers can even earn more than 1,000 yuan
(US$130) a day," said one teacher who was interviewed.
Even pre-school teachers are subject to bribes. "My six-year-old
son asks me to visit his teachers on festivals, because most of his
classmates ask their parents to do so. In this way the kids can get
more care and attention," said a woman.
To visit a teacher, parents no doubt have to take along a
hongbao or quality gifts. In the last Chinese New Year gala concert broadcast by the
China Central Television (CCTV), there was an amusing sketch of
parents visiting the president of a private school with luxury
gifts to try to obtain entry for their children – everyone
recognized the truth behind the skit.
Funeral and interment industry
Usually relatives of the dead are willing to go to a lot of
expense in conducting a funeral, the newspaper reported. Employees
of the funeral and interment industry understand the wishes of
these relatives well, which leads to all sorts of illegal
charges.
A cinerary casket that is actually worth only a hundred yuan can
be sold to relatives of the deceased at a cost running from several
hundred to a thousand yuan, explained an employee of one funeral
parlor. Some funeral companies can reap colossal profits by such
means. In addition, they list all sorts of charges for transporting
the corpses, carrying the coffin, and parking vehicles. By taking
advantage of the industry's monopoly position, its employees
wantonly raise the prices and force relatives of the dead to pay
unnecessary expenses at a time when they are emotionally not able
or willing to protest.
Grey income is an inevitable result of the market economy, said
Mao Yushi, a Chinese economist. "While indicating the beginning of
more active economy, grey income also brings about a series of
social problems like the loss of state taxes, the enlarging gap
between rich and poor, corruption, and degeneration."
"For common people, the important thing to consider is how and
why these 'rich people' can get this sort of money rather than
simply looking at how much they get."
(China.org.cn by Li Jingrong, April 9, 2007)