The unequal distribution of Wealth in China is a problem to which Chinese authorities must pay attention. As China is getting rich, Beijing must insure that growth reaches everyone and not continue to be felt only among a fraction of the population
The primary motivation for China’s economic reforms was to increase economic growth and to raise living standards after nearly twenty years of stagnation. While the question whether the reforms have been successful in raising the standards of living remains debatable, they have certainly created a recently expanding phenomenon: The unequal distribution of Wealth in China.
One of the major elements of economic inequality is the detachment of oneself from his/her surroundings: Moving from a courtyard to an apartment building means that one is less familiar with his/her neighbors, driving a car instead of taking the bus or the subway means that one meets less people during commute, and so forth. Although these scenarios are normal by products of economic growth, the rise of a new social class in China, known as the “富二代“ -- the “second generation rich”, might indicate that the connection that the elite maintains with the rest of society is looser in China than it is in other countries.
“Second generation rich” are the result of the unequal distribution of Wealth in China. For the most part, they are the children of parents who accommodate their every desire and fulfill their every whim: from purchasing luxury sport-utility vehicles to holding extravagant events.
Two separate incidents that occurred last week help strengthen the speculation that the policy of distributing Wealth in China might have been wrong and that as a result the social distance between the rich and the poor has increased. In the first incident, a man picked up his daughter from a local university in Shandong province with a helicopter. The incident was observed by many students who were on campus at the time, and they were not shy about displaying their disbelief from the unusual event.
In a different incident in a Shanxi province wedding, luxury cars, big houses, fancy jewelry and other goods comprised the main attractions of what seemed to be one of the fanciest weddings that has ever taken place in China. Here are some pictures from the event:
Unequal Distribution of Wealth in China
While some view the “second generation rich” as young, spoiled kids who lack proper education, some do not consider their attitude a problem. Laowaiblog met with a young Chinese woman named Heidi who expressed her opinion about the distribution of Wealth in China: “In China, people have never had the sums of money that they have today, so it is understandable why some have the need to show their new made wealth.” Despite the incidents of the past week, Heidi does not seem to be concerned with the expansion of this phenomenon: “Although many disapprove of this type of behavior, I am of the opinion that the majority of Chinese do not hate the wealthy. Many, however, expect them to contribute more to society than those who did not benefit from the new economic conditions.”
Heidi sees the unequal distribution of Wealth in China as a normal by product of the fast economic growth that has been prominent here for the past 30 years: “In many developed countries the situation is quite similar, for example in the United States or in Russia. This is a natural process of economic growth, in which a new social order is being created. With that being said, I think it is important to maintain strong educational culture at home, so kids can learn how to behave properly – regardless of money that they may or may not posses.”
Although Heidi is not concerned, many are nonetheless worried that the unequal distribution of Wealth in China is creating a feeling of distance within the Chinese people. Heidi thinks that although the situation can get worse, it is unlikely to occur anytime soon: “I personally feel that respect is something that has been missing, and I hope that those who have gotten rich thanks to the economic reforms are willing to give something back to society. That way, mutual respect can be gained. If they choose not to do so, however, we might have to deal with a bigger social gap among people in our country.”
As wealth in China has been distributed unevenly in the population, some people have gotten rich while others have not. The government has yet to officially declare the “second generation rich” as a problem that needs treatment, yet it is clear that proper education and more discipline are needed to remind young adults that while they are out shopping for jewelry or for hand bags, most people their age are still struggling with everyday life.
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Lior Paritzky is the Editor in Chief and Manager of Laowaiblog, an internet platform that provides opinion and views about social phenomena in modern China. Look for Lior on Twitter: Liorpari 
Personally think, this “second generation rich” people without proper education and personality won’t keep their wealth for long. Since China is a country with intensive living competition, those young kids can’t survive without their parents. But their parents will become older and no longer can protect them, and they are just finished.
This phenomenon of “Secondgeneration rich” comes from certain certain common vision shared by last generation. They used to live in proverty and can’t offer their kids a good life. Now they have made money and want to give their family an honorable life not only kids, but also their parents and spouses.
Lior, I wish it’s understandable that the vision of famility in china sometime means “Jiangzhang” who is the major leader of familiy. And they are admired by providing better life to families. Since the life in Chna has been littel of moeny-oriented. Some of them may think money is only thing to measure their contribution. And it spoil their families, especially the kids who jas not mature thinking.
But this phenomenon is occasional. Many parents has already realized that the importance of proper education and their kids are not spoiled and living in a good way. The problem is that these good case always be ignored, and bad case always be spreaded because it has more public concerns.
Well, the second generation rich sounds like something we are familiar with here in America. I have many rich friends who behave like they deserve everything and like everything needs to be given to them. In the long run, it is not a real problem for the states because the majority of people are not like that..Yet for China, it might be a problem if a growing number of people become this way – Isn’t a harmonious society one of the party’s major slogans?
I agree with Heidi here. I wouldn’t be too concerned as long as we are talking about a very small minority of the population. When it gets to be a lot of people – then you have a problem. Either way, I strongly believe in the Chinese education system that will jolt some sense into these people before it is too late
Despite the gloomy picture this article is trying to depict, I think the situation in China is not bad at all, considering how quickly so many people have gotten really really rich. It could have been much worse, and the Chinese people should give thanks to everything they have. This issue will go away as society matures and understands that money isn’t everything and that the culture, especially the Chinese culture, is what has brought them money in the first place. I predict that when they realize this (don’t know when) they will remember that it is not about the money.
Just look at Japanese who are saying now that they suddenly realize that material things are not as important as they once thought. This is an article about it in the NY Times: http://www.nytimes.com/2011/03/26/business/global/26luxury.html
I think this analysis would have been more interesting and penetrating if it had attempted to address the relationship between _wealth_ and _political power_ in China. The two are closely linked. Do ordinary Chinese know about that? What do they think? It’s not easy.
Hi Matthew,
I agree with you, but I also think it is very clear that there is a very strong line connecting political power and wealth (not just in China). I would also be happy to hear what the Chinese people have to say about that.
Daniel
Hi, Daniel:
I agree with you.There always be a relationship between Wealth and political power in almost every countries across the world. Nothing special for china comparing to USA, UK or other western capitalizm state.
Only issue concerned to be different, I guess, will be the “family connection”. You may find most of Top China Billionaires are relatives of some important political leaders, or may have strong personal relationship with them. We are still family-based country. Once you have power in your hand, you may would like to offer benefits to your families, not strangers. It is quite easily-understood base on Chinese Culture. I assume it may happen in Western world too often due to media watch. Politians might not be able to use their power in such direct way.
Not to undermine the quality of this post, I think the reaction to the second generation rich might be overrated in China, so I tend to agree with Heidi. Every country has richer people and poorer people, even in the poorest countries or the richest ones, there will always be a gap. The main issue is how big the gap is. I think that in China there is a huge effort to try and narrow that gap because people realize it may have gone too far. But that doesn’t mean that this is a problem that should worry policy makers.
Gross displays of wealth are tacky, no matter where they occur. People of character who have money do not flaunt their wealth – they are subdued and marked by restraint. Clearly, character and sophistication can not be ‘bought’…