Mandating business and rich folk to keep x% of assets in country is not unreasonable (it's what Putin has done in Russia, and so far it's worked over there). But I think the bigger worry for the leader group is the huge population of poor and 'middle class' Chinese living in rough conditions with little to no hope for betterment, worsening conditions in lots of sectors, and growing wealth gap. To see city after city of gleaming malls and towering housing developments but almost completely devoid of actual residence was astonishing last winter when I visited for 2 months.
They've seen rapid betterment in the last 60 years going from an average (inflation adjusted) yearly wage of $364/year in 1950 to $7226/year today.
How does that translate to 'little to no hope for betterment'? It's still not great, but it seems the govt are doing as much as they can (and better than anyone else) to improve things.
The average/mean only represents something if it's distributed about the mean.
One of the major issues in China right now is that that's not the case - the creation of a minted upper class is skewing the data and hiding the distribution - which is that there is a sea of poor, below the poverty line, with little to no hope for improvement, and an increasingly wealthy upper and middle class.
Keep in mind that the gap between the lower and middle class in China is much wider than the equivalent gap in the US. In reality people in the "middle class", in relative terms, would be far into the upper classes in the US.
I thought most Chinese are above the poverty line. 500 RMB a month (which is a terrible wage in most parts of China) is over $2 a day, which is over the poverty line.
I'm sure you can find people below $2 a day, not a sea.
There's two big issues - regional differences, and people from poor areas who try to survive in the big cities. Because wages (and the cost of living) are so different, someone from a poor area (i.e. a rural area, or a poor province) will not have any meaningful financial support from their family. But kids with parents in the rich areas get a lot more financial support.
