Abstract
This chapter addresses the recent growth of the Chinese middle class from a Weberian point of view. Starting from a re-appreciation of Weber’s Confucianism study, a comprehensive framework for analyzing China’s economic success is presented, including political, economic, cultural, and environmental aspects. According to Weber, ideas and interests have to be balanced against each other in social analysis. The actual and changing role of Confucian values in emerging political and economic institutions is discussed. The chapter assesses the size and composition of the Chinese middle class, and discusses the consequences for consumption and the environment. Although consumerism in China is still confined to a rather minor social segment, its actual growth rate leads to the conclusion that by 2020, China’s consumer market will have reached the size of the one that most Western European countries display today.
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Notes
- 1.
People’s Daily Online, 20 July 2006 (http://english.peopledaily.com.cn/200607/20/eng20060720_285083.html). A Gini coefficient of 0 indicates equal distribution of income, a value of 1 stands for totally uneven distribution. One should note that inequality in rural or urban areas respectively is lower than inequality across both types of regions (Wu & Perloff, 2005).
- 2.
While one should appreciate the role of the government in reducing mainly rural poverty, one should at the same time be careful in observing new forms of urban poverty (Liu & Wu, 2006).
- 3.
The actual amount of Taiwan-originated investment in mainland China may be two to three times the amount publicly acknowledged.
- 4.
A similar situation holds for Shanghai, a city that emerged as China’s first global city during the 1990s. In 2000, a total of 23 billion $ have been flowing into the city as FDI. 42.3% came from Hong Kong, 15.7% from Japan, 6% from Taiwan, and 5.5% from Singapore. More than 70% of all FDI to Shanghai originated in East Asia, only 28% in the West (mainly USA, Germany, UK, Australia, and Canada). Accordingly, although not as marked, 55% of all foreign migrants/residents in Shanghai in 2000 came from origin destinations in East Asia, and only 30% from the West (Li & Wu, 2006: 256, Table 2).
- 5.
It is interesting to compare the Chinese version of social capital (guanxi) with the Russian one (blat) (Hsu, 2005). Russian blat devolved into corruption, played a major role in state-business relations, but faded in importance for ordinary citizens. Without a way to build trust or extend networks, average Russians retreated into defensive involution, and engaged in predatory behavior against those outside their small circles of friends. Instead of capitalism without contracts, Russia suffered the depredations of capitalists without capitalism.
- 6.
The annual income for members of the lower middle class according to this study is $3,019–4,831, for the upper middle class it is $4,831–12,077.
- 7.
This is a rather conservative categorization, as some fractions of the working and especially the service classes will probably count as middle class in terms of purchasing power and mentality. On the other hand, the typical consumption pattern of workers in China’s urban growth areas puts additional constraints to their categorization as middle class. Coming mostly from rural areas, the workers’ goals are to simply accumulate as much money as possible before they go back to their rural hometowns. This is in stark contrast to typical U.S. or European factory workers who, historically at least, expect to hold their jobs until retirement and be increasingly active consumers. In China, workers engage in factory jobs for a short time and consume very few goods during that time (Fox, Donohue, & Wu, 2005; Li & Li, 2007).
- 8.
For a brief characterization of the role of entrepreneurs in modern China and their consumption behavior see Goodman 1996.
- 9.
Chunling (2003) concludes that 27% of the Chinese population can be regarded as middle class in terms of occupational background, whereas 24.6% can be counted as middle class in terms of income. Myers and Kent (2003) count 303 million people (or 24% of the 2000 population) as “new consumers”, i.e. purchasing power of at least PPP $10,000 per year, i.e., at least PPP $2,500 per person. According to our assessment, this gives rather an upper boundary for the Chinese middle class. Li and Zhang (2008) assess the size of the middle in all China to be 12.1, in urban China to be 25.4.
- 10.
Subjective class assessments reveal that 85% of urban residents (N=3,038) identified themselves as middle class (14% as “upper middle”, 43.1% as “middle middle”, and 28.4% as “lower middle”) (Xiaohong, 2004). This subjective class perception in part reflects the overall political climate, but it also reflects the future expectations of the non-middle-class members of society.
- 11.
Sinus stresses, however, that the consumerist traits in modern Chinese middle-classes are by no means an exclusive result of social imitation of the West (e.g. via the mass media). Even the “full speed” modernizers always try to reconnect their views and practices to elements of the Chinese cultural tradition.
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Reusswig, F., Isensee, A. (2009). Rising Capitalism, Emerging Middle-Classes and Environmental Perspectives in China: A Weberian Approach. In: Meier, L., Lange, H. (eds) The New Middle Classes. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-9938-0_7
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