New money: the booming Chinese economy created 54 new billionaires over the past year, according to figures released by Forbes magazine this week.
New money: the booming Chinese economy created 54 new billionaires over the past year, according to figures released by Forbes magazine this week.

Booming Chinese economy creates 54 billionaires in a year



BEIJING // It has been more than 30 years since the late Chinese leader Deng Xiaoping supposedly said "to get rich is glorious", and now more than ever China is showing it has taken this message to heart.

The dragon economy created 54 new billionaires over the past year, according to figures released by Forbes magazine this week, taking the country's total to 115, second only to the United States.

Some of those listed are more than just leading figures in the country's business world; they also have seats on the National People's Congress (NPC), the legislature sitting this week to map out policy directions.

According to figures released by the Shanghai-based Hurun Report, and reported by Bloomberg, the wealthiest 70 members of the nearly 3,000-strong NPC are together worth 493.1 billion yuan (Dh275.46bn), with China's richest man, the soft drinks magnate Zong Qinghao, among the ultra-wealthy to have secured an NPC post.

With inequality having increased in the past decade, the presence of such business giants as Mr Zong reflects "where honours now go in the socialist society", according to Joseph Cheng, a professor of political science at City University of Hong Kong.

"Before, honours went to model workers and model farmers; now they go to businessmen who do philanthropic work," he said.

Indeed many believe, Dr Cheng said, that places on top bodies such as the country's highest advisory body, the Chinese People's Political Consultative Conference (CPPCC), the national committee of which is also meeting this week, are informally up for sale to those who make generous contributions to high-profile projects such as the Olympics or Asian Games being held in the country.

Concerns have been raised in international media that China's monied elite influence, through their seats on legislative and advisory bodies, key welfare, income tax and property tax policies designed to redistribute wealth and cool a potentially overheating economy. Billionaires, the argument goes, are unlikely to support the redistributive tax regime others believe is necessary.

However, the degree of influence bodies such as the NPC and CPPCC have on actual policy-making is "quite small", according to Ding Xueliang, a professor and political analyst at the Hong Kong University of Science and Technology.

If the central leadership does not want to introduce tax reforms, they might use the NPC as "a front", Dr Ding said, giving the appearance their efforts were blocked by the legislative body.

However, with the NPC often regarded as a gathering that merely rubber stamps decisions, if "the government is really serious about such legislation, the NPC cannot make a big difference".

While being rich in modern China may not necessarily translate into having political power, at least on the national stage, it is widely believed that political power offers a fast-track to wealth.

The privileged family members, especially children, of some of China's leaders past and present are active in industries such as private capital, using their connections to aid foreign investors looking to cash in on the country's unprecedented double-digit economic growth.

Although many of their dealings remain out of the public eye, and China's internet "Great Firewall" suppresses those trying to find out more, "there is a lot of public resentment, even anger, on this", Dr Ding said.

"In the ordinary Chinese people's perceptions, the linkages between the politically powerful and the channels to make large and quick money appear to be too strong and too unfair," he said.

"That kind of anger, that kind of resentment in the recent 10 to 15 years is on the rise."

Given the often opaque dealings between officialdom and commerce in China, a country where even the central leadership publicly acknowledges corruption is an acute problem, "wealth is perceived as illegitimate", Dr Cheng said.

The belief, whether justified or not, is that many make their fortune through connections and privileges.

"You don't become rich [in China] like Bill Gates did," he said. "This is a serious long-term problem.

"At the moment this is OK, because the vast majority of Chinese people have seen a very significant [increase] in their own living standards in the past three decades.

"They are still optimistic about future improvements. They don't want major changes. They don't want chaos. They accept the status quo.

"But this is exactly why there are so many dissatisfactions and grievances beneath the impressive economic statistics."

At a speech to the NPC last weekend, the Chinese premier, Wen Jiabao, acknowledged there was "great resentment" over corruption, income disparities and other issues, and promised the authorities would try to tackle these over the next five years.

Recent attempts to encourage protests similar to those that have swept through much of the Middle East have petered out amid a huge security presence. Yet although most seem content for the moment to accept the status quo, albeit sometimes reluctantly given the allegations of corruption and nepotism and the spiralling wealth disparities, if the wheels come off China's economic juggernaut and improvements in living standards are threatened, this could change, Dr Cheng says.

"Then you may have very serious trouble," he said.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)

Fatherland

Kele Okereke

(BMG)

The story in numbers

18

This is how many recognised sects Lebanon is home to, along with about four million citizens

450,000

More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps

1.5 million

There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m

73

The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association

18,000

The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme

77,400

The number of people believed to be affected by the current nationality law, according to the 2009 UN study

4,926

This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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The essentials

What: Emirates Airline Festival of Literature

When: Friday until March 9

Where: All main sessions are held in the InterContinental Dubai Festival City

Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.

Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.

Information: www.emirateslitfest.com
 

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia

Heather, the Totality
Matthew Weiner,
Canongate 

'Cheb%20Khaled'
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