Those 500 million rural poor represents the bottom 35% of Chinese society. They represent mostly older farmers who never caught on to the industrial revolution. They live on 2 dollars a day, which is pretty horrible.
However the median global wage is around $1.15 a day. So the poorest Chinese peasant still makes almost twice as much as the global median salary. In the early 80s, 95% of the Chinese population lived on a dollar a day.
The bottom line is that capitalism and industrialization tremendously improves a society.
In the early 80s there was an "iron rice bowl" I think it was called. That was an era when "enterprises" were state owned or owned by the local governments. Worthless enterprises. Some remain being kept alive by non-performing bank loans -- The Chi-Coms don't dare add tens of millions to the unemployed.
The 500 million (many put the figure at 800 million) have no "iron rice bowl."
Yes capitalism and industrialization tremendously improves a society. But what good is it if it's decades away from a domestic market that can sustain the industrialization? When only about 400 million out of 1.2 billion have benefited?
The news articles I've read say that the Party is very worried about those "older farmers who never caught on to the industrial revolution." Not worried about their well being but about revolution.
If their exports take a dive that's tens of millions more out of work while the Chi-Coms can't even come close to 25 million new jobs annually needed for youngsters entering the workforce.
No.. I do not admire the Chi-Coms and their "Socialism with Chinese Characteristics" (a.k.a., Deng's version of Lenin's New Economic Plan. IMO). I'll take the good ol' U.S.of A. and Her recessions any day, thank you.