A Marketplace Special Report: China's shift from a planned economy to Wild-West capitalism is creating an economic frontier where the old rules no longer apply. While Europe took 200 years to switch from agricultural to industry, China is expected to make the leap in 30 years. In this series, Marketplace's Jocelyn Ford takes us into the homes of five people from across the widening class spectrum who are caught up in the unprecedented typhoon of social and economic change.


Gentrified Farmer
Under Chairman Mao, factory workers and farmers were supposed to be the masters of society -- but now, that has been turned on its head. We meet a producer for China's state-run radio who grew up in a small village in a very poor province. Up till 10 years ago, those born there also died there. But Liao Jibo, 25, like many his age, left the hamlet for Beijing in search of better opportunities. When Liao Jibo returns home, he feels like he's traveling back in time.
Tuesday, March 2, Marketplace Morning Report
Slideshow: View pictures of Liao Jibo's family and the small, rural village where he comes from.

Factsheet
REPRESENTED BY: Liao Jibo, 25, radio producer
MOST LIKE: Time traveler Marty McFly in "Back To The Future"
ASSETS: $9,000 in bank savings.
BIGGEST EXPENDITURE: College fees for sister, which work out to about $1,200 year.
DREAM: To start his own news radio station, without censorship.
BIGGEST WORRY: He lacks opportunities for professional development at the state-run radio station.



Upper-Middle Class
Decades after China's Red Guards waged class warfare, vilified businesspeople and idolized workers, China has embraced the idea that a white-collar middle class is the backbone of a vibrant economy. We meet such a family of three living the 21st century Chinese Dream. While Chen Guodong, a state travel agent manager, owns a townhouse and two cars, now, that's not enough. Moving up in the world is not just about comfort -- it's about saving face.
Tuesday, March 2, Marketplace
Slideshow: View pictures of Chen Guodong's family, new condo and his meetings with interior decorators.

Factsheet
REPRESENTED BY: Chen Guodong, 39, state travel agent manager
MOST LIKE: Ward Cleaver of "Leave It To Beaver"
ASSETS: Owns two homes valued at $118,000. Borrowed $36,000 from classmates for second home. They didn't want interest, but he's planning to pay 4 percent anyway; bank rate is 1.7 percent. Borrowing from the bank is a hassle.
BIGGEST EXPENDITURE: Paying back housing loans: $200 a month for gasoline and auto maintenance for two cars.
DREAM: To enjoy weekend barbecues with friends at his townhouse in the suburbs. Says he's not very ambitious.
BIGGEST WORRY: His daughter can get into a top-ranked school.


White-Collar Yuppie
As China opens its economy, major multinationals have moved in, bringing with them coveted jobs and new values. They have helped create a new breed of upwardly mobile young Chinese professionals with higher salaries -- and lifestyles to match. We meet Joy Li, 31, whose lifestyle is more familiar to Americans her age than to most young Chinese. For role models, this accounting firm worker turns to "Sex and the City." And, that's a world apart from her parent's generation.
Wednesday, March 3, Marketplace Morning Report
Slideshow: View pictures.

Factsheet
REPRESENTED BY: Joy Li, 31, accountant at a multinational
MOST LIKE: Carrie Bradshaw of "Sex and the City"
ASSETS: Home and some savings.
BIGGEST EXPENDITURE: Mortgage is $480 a month; entertainment expenses.
DREAM: To make partner at her accounting firm and to travel the world.
BIGGEST WORRY: That she will lose her job.


Urban Poor
In this new China, some have made the leap to financial success, while others have fallen behind. The family of Hou Jinrong, 42, is part of the class of 100 million migrant workers who have left the family farm where they had virtually no cash income to work in the city. Today, they live by peddling trash to a dump outside the city. The money is barely enough for the family's food and cheap rent. Hou Jinrong's Biggest worry is the future of her children: Her son is now a trash collector -- much to her disappointment.
Wednesday, March 3, Marketplace
Slideshow: View pictures.

Factsheet
REPRESENTED BY: Hou Jinrong, 42, trash recycler
MOST LIKE: Sharecropper northern migration, early 20th century
ASSETS: Owes $600 for failed businesses in the village. She has no idea how to open a bank account. She keeps all her money in a zipper pocket in her underwear -- it's never more than $60.
BIGGEST EXPENDITURE: $72.00 for food per month
DREAM: To buy a house and car for her oldest son, cure her second son of his tumor, and send her "adopted" four-year-old daughter Jiajia to college
BIGGEST WORRY: The future of her 14-year-old son, who suffers from a brain tumor. She doesn't know how long he will live or how he will support himself


Nouveau Riche
China's rapid economic transformation has created opportunities that have launched a new class of millionaires, virtually overnight. We meet one rags-to-riches family: Husband Jimmy Ye built Beijing's first Formula Three racetrack; his wife, Celia, runs an upscale furniture and interior design business. Over the past decade, they have boosted their net worth to a cool $100 million. But Celia says life for China's nouveau riche can be brutal: Many friends have been forced into bankruptcy or have become addicted to drugs. The family has also received kidnapping threats.
Thursday, March 4, Marketplace
Slideshow: View pictures.

Factsheet
REPRESENTED BY: Celia Shi, 41, furniture company owner
MOST LIKE: Robber barons, early 20th century.
ASSETS: About $100 million. Got into the furniture business early. Bought land in a Beijing suburb in 1995 -- value increased 166 times.
BIGGEST EXPENDITURE: Children's education: $45,000 a year for three children to attend international school in Beijing
DREAM: To list on the NASDAQ in 2006. Wants children to be really nice kids, and to some day take over the company. Also, to move to Thailand after she retires because life there is slow and peaceful.
BIGGEST WORRY: Too sensitive

Discussion: China's gap between rich and poor is among the widest in the world. When a communist economy tries to transform to a market economy, is corruption inevitable? Why or why not? What should be done to narrow the gap between rich and poor? Should the U.S. do anything to help with China's social stability? If so, what?
Give us your opinion.

Under Mao (1949-1976) and Now statistics:
Per Capita GDP
Under Mao: $160
Now: $1,000

Heroes
Under Mao: workers, farmers, soldiers
Now: entrepreneurs, wealthy

Dissed
Under Mao: businessmen, wealthy
Now: farmers, poor people

Global Trade
Under Mao: negligible
Now: fourth-largest trading nation


 

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