Standard of living in China

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Historically, the Chinese economy was characterized by widespread poverty, extreme income inequalities, and endemic insecurity of livelihood.^[1] Improvements since then saw the average national life expectancy rise from around forty-four years in 1949 to sixty-eight years in 1985, while the Chinese population estimated to be living in absolute poverty fell from between 200 and 590  million in 1978 to 70 million in 2017.^[2] Before the 19th century, China was one of the leading global powers.

Until the end of the 1970s, the fruits of economic growth were largely negated by population increases, which prevented significant advances in the per capita availability of food, clothing, and housing beyond levels achieved in the 1950s.^[1]

In 1978, the Chinese Communist Party, under the leadership of Deng Xiaoping, began to introduce market reforms, including decollectivizing agriculture, allowing foreign investment and individual entrepreneurship.^[3] After thirty years of austerity and marginal sufficiency, Chinese consumers suddenly were able to buy more than enough to eat from a growing variety of food items.^[1] Stylish clothing, modern furniture, and a wide array of electrical appliances also became part of the normal expectations of ordinary Chinese families.^[1]

Following the economic reforms introduced by the government in the late 1970s, consumption, and individual incomes rose significantly, with the real per capita consumption of peasants rising at an annual rate of 6.7% from 1975 to 1986, while for urbanites over the same period, the corresponding figure was 5.5%. The improvements in the standard of living were demonstrated by a boom in rural and urban housing, together with a considerable increase in the ownership of televisions and other appliances.^[4]