In this videocast, I would like to dispel one of the myths about China, answering the question: what are the regions, cities, provinces of China where the average citizen has more purchasing power?
Answering this question can be complicated, especially when using GDP per capita as an indicator. It is not right to think that a larger per capita GDP is greater purchasing power, especially if we divide this indicator into the parties that make up it: one part goes to the form of taxes, one part goes to the companies and one really goes to the citizens in the form of wage. Only this last part is the one that is called into question when evaluating the purchasing power of an individual. And this is what we analyze, comparing two very far-off reality not only from the geographic point of view, but also from a demographic and working point of view: Shanghai and Kunming
Let’s see together what is the right analysis to understand where the purchasing power is greater.