Income Inequality: A Chinese Family’s Perspective

NPR recently did a two-part series on rising income inequality in China, and how it manifests itself even within individual families across the country. Zooming in on the Gong brothers in Beijing, the series explores how each of the three brothers has adapted to the stark economic changes that China has experienced during the last several decades.

Due to his “head for capitalism”, Wencong, the middle brother, did well for himself: he found a niche selling vegetables wholesale to private vendors. His initiative has earned him a relatively comfortable living in the suburbs of Beijing—for instance, he now drives a BMW. The youngest brother, Wenju, leads a life very different from his brother’s. As the Chinese economy became fiercely competitive in the 1990s, the state-owned factory in which Wenju worked collapsed, forcing him to take up cab driving. His income has fallen ever since, which has strained his relationship with Wencong.

Finally, the oldest brother, Wenbiao, struggled the most with China’s transition to capitalism. After the family home was demolished by the government five years ago, Wenbiao and his wife moved back to Inner Mongolia, as they could not afford housing in Beijing. They lived off the land and opened a dumpling restaurant, but soon Wenbiao fell ill. They moved back to Beijing to attend to his health, but lacking health insurance, Wenbiao passed away without being treated.

Living under the same roof for many years and getting along well, the Gong brothers have followed divergent paths throughout China’s transformation, which in turn has altered the nature of their familial relationships. To read further, click here for part one of the series and here for part two.

I caught part of this on the

I caught part of this on the radio the other day. I actually missed the story of Wen Biao, although the teaser had mentioned that he had the most trouble.

It's perhaps worth noting that Wen Cong got very angry when asked how he could afford the BMW and such on his current salary, which I think was a government one. He rather vehemently and angrily denied any corruption, but based on what they said in the piece and what I heard elsewhere, as with many transitioning economies, some level of corruption is highly correlated with those that came out on top.