the United States, China has the most billionaires in the world, and in the last 15 years the

number of billionaires has skyrocketed from just two to over 300. So, why does China have

so many billionaires?

Well, since 1978, china’s economic growth exploded following the reversal of strict

Communist policies instituted by former leader Mao Zedong. In the past few decades, the country’s

per capita wealth has increased by nearly 10% each year. China has gone from being an

isolated, closed-market economy to operating countless international businesses utilizing

more capitalist ideals.

Today, Chinese economic policy encourages increased foreign trade and investment. Notably,

in the 1990s, previously-state-controlled businesses were privatized and given new freedom

to pursue profits. Lack of comprehensive regulations for laborers, construction work and environmental

pollution have also allowed new Chinese businesses in tech, real estate and retail industries

to flourish.

But billionaires also reap huge profits from rampant corruption. Money from new ventures

flows mainly upwards to an elite group of business executives and politicians. Reportedly

about 10% of government spending, contracts and transactions are used “as kickbacks

and bribes, or simply stolen." This corruption may stem from some traditional Chinese business

relationships which undermine free market policies. Additionally, there is a longstanding

precedent of criminal immunity for high ranking members of China’s ruling party. However,

the current president has led an anti-corruption crackdown, leading to powerful figures being

scrutinized. China’s ex-security chief was recently sentenced to life in prison for taking

bribes, and billions of dollars were confiscated from his family.

Income inequality between billionaires and the poor is even more severe than many reports

indicate. This is due to the wealthy hiding excess funds in overseas bank accounts or

other difficult to trace foreign investments.

But because of recent corruption scandals among the wealthy, Chinese Billionaires are

hesitant to broadcast their true wealth. members of China’s wealthy elite avoid the public

spotlight, and are known as “Vampire Billionaires." Many choose to spend their time abroad, and

have been buying significant amounts of foreign real estate in cities like New York and San

Francisco.

Despite recent and severe stock market fluctuations in China, the economy is expected to continue

growing. One financial expert suggests that due to “high growth opportunities” in

Asia, the number of Chinese billionaires will surpass the number of American billionaires

in just 5 to 10 years. China’s national wealth is even predicted to overtake the US’s

by 2026. However, China must deal with severe corruption located deep within its own political

identity, before it can completely realize its full economic profit potential.

CTA China has a tumultuous history with its Communist

past. One of their biggest splits was with neighboring Taiwan. Find out why the two countries

hate each other in this video. Thanks for watching TestTube, don’t forget to like

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