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People's Daily Online>>China Business

Bigger middle class key to growth: Expert

By Lan Lan (China Daily)

14:57, April 02, 2012

A great number of billionaires have emerged from China, but fostering the country's middle class should be a top priority in order to increase consumer spending, said Xiang Bing, founder and dean of the Cheung Kong Graduate School of Business.

The number of Chinese billionaires may overtake the United States in the next five to 10 years, but the rise of middle class has been sluggish, Xiang said in an exclusive interview with China Daily before the start of the 2012 Boao Forum for Asia. He called on entrepreneurs to contribute to building the middle class.

"Companies will play a crucial role, though not an exclusive role, in developing a middle-class society," he said.

Most Chinese entrepreneurs remain ignorant of the benefits of the establishment of a solid middle class and, therefore, do not take measures to bring their employees into the fold of the business, he said.

He cited Ren Zhengfei, founder of a leading Chinese telecom equipment provider Huawei Technologies, as a model to follow. Ren owns only 1.42 percent of the equity shares of the company, while the rest is held by employees.

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Canada at 2012-04-0370.36.49.*
Low income people are likely to spend all their money which boosts the economy.
Canada at 2012-04-0370.36.49.*
A businessman from Wind Mobile[?] in Canada interviewed on the Business channel said working with Huawei Technologies was wonderful. When they had a problem Huawei would bring in a roomful of highly educated personnel, they asked questions until they understood the problem, and went away and fixed it. No blaming someone else, or finding a loophole or some other way to get out of fixing it. The service was superb.
George at 2012-04-0324.85.183.*
China"s cultural and social habits will entrap it into the middle income trap...with billionaires and poor vast majority.

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