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.
Not sure where your coming up with the 800 million rural poor figure but.... Here are some semi-reliable sources of information:
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
130 million below UN poverty line ($1 /day or global median wage)
350 million low income ($2 a day)
500 million working class ($3000-$9000 a year)
250 million middle class ($10k-20k a year)
50 million upper class ($20k or above a year)
China in the 80s had numerous food shortages all over the country. The iron rice bowl was basically government propaganda.
Notice the sharp discrepancy between the rural incomes of 2 dollars a day versus the 15-30 dollar per day incomes of factory work?
A Chinese factory worker is earning between 15-30 times more money than the median person(an illiterate peasant) on the planet.
Basically the difference between subsistence agriculture in a mud hut with cows and pigs versus a small apartment with electricity, running water, TV/Internet, and modern transportation.