The face of China is changing, but slowly, for the 750 million people who live in the countryside the just agreed changes in property rights law will make little difference, but for the growing middle class and business community it will bring some stability.
China’s market economy is maturing, even as it soars growing by 10.7% last year, driven by surging exports and investment.
But China’s Premier Wen Jiabao has just said that there is an imbalance in the growth between urban and rural areas and different regions, as well as insufficient coordination between agriculture, industry and services.
The average annual salary for all Chinese is 900 euros. Of the people living in cities, 22% now earn enough to be consider lower or upper middle class and their average salary is 6,000 euros a year.
The Beijing government is worried that record trade surpluses are flooding the economy with cash. That makes it harder to cool investment by reining in bank lending.
The governor of the central bank said on Friday that he is watching inflation closely and comments from government ministers suggest that interest rates could be raised again soon or other measures taken to make it more difficult to borrow money.