China's "Silicon Valley" Creates More Millionaires

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Last updated at: (Beijing Time) Friday, December 14, 2001

China's "Silicon Valley" Creates More Millionaires

A survey done in Beijing's Haidian District, otherwise known as China's "Silicon Valley," has found that over 100 people earn 10 million yuan (1.2 million US dollars) annually, and many more will rake in more than one million yuan this year. The survey shows that "intellect-intensive" jobs bring higher pay. Management jobs pay more. Workers in joint ventures are also in the higher income bracket.

Half of the people in Haidian earn over 60,000 yuan annually

A survey done in Beijing's Haidian District, otherwise known as China's "Silicon Valley," has found that over 100 people earn 10 million yuan (1.2 million US dollars) annually, and many more will rake in more than one million yuan this year.

The survey indicates half of the people in Haidian earn over 60,000 yuan (7,220 US dollars) annually, much higher than that in other areas in Beijing.

Haidian's personal income tax will top 2 billion yuan (241 million US dollars) this year, and take up 2 percent of the total personal income tax revenue in China, said Zhao Hong, who is in charge of personal income tax collection in the district. High incomes mainly go to managers of information technology businesses, software developers, brokers, and entrepreneurs, and income levels are decided mainly by capability, work achievements and educational levels, Zhao said.

Intellect-intensive jobs bring high pay

The survey shows that "intellect-intensive" jobs bring higher pay. Management jobs pay more. Workers in joint ventures are also in the higher income bracket. China has preferential policies encouraging people with expertise in technology to earn more faster by a number of means, including shareholding in companies, said Zhong Wei, head of the Finance Research Center in Beijing Normal University.

The district attracts many people by its sound cultural foundation and well-executed policies of protecting property rights, Zhong said.

Haidian, an important technology base in China, is home to over 6,000 high-tech corporations, over 50 universities, about 140 research institutions and over 100,000 high-tech employees.

Its pillar industries include software, information technology, photo-electronics, medicine and new materials, which bring along the growth of culture, education, and real estate. Zhao said that in 1994, Haidian collected 30 million yuan (3.61million US dollars) in personal income tax, and the amount has doubled annually.

The active personal income tax collection codes, revised in 1993, play a key role in reducing the income gap between the rich and the poor, Zhao said.

Last year Haidian's average income was 20,092 yuan (2,329 US dollars), 25 percent higher than the average level in Beijing.

Personal Tax Revenue Soars in Beijing

With total personal income tax hitting 2.398 billion yuan from January to May, Beijing saw a rise in personal income tax revenue up to 0.48 billion yuan or a growth of 25.33% as compared to the same period of last year,according to the local tax bureau.

February and March witnessed the revenue exceeding 0.5 billion yuan successively. The ratio of personal income tax to local industrial and commercial taxes is as informed constantly on the rise, reaching 20% up till now.

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