As someone who was born and raised in China, I always had a specific perception of what my homeland was like. Having spent my formative years there before moving to Europe for studies and work, I initially feared the high costs of living in Paris, where I spent seven years. Yet, after returning to China for an extended period, I was left utterly stunned by how expensive life has become in the country.
Many of us, especially those born before China’s recent economic boom, grew up thinking of Europe as the symbol of luxury. This belief persisted as I moved to Paris, where I spent my first few months mentally converting every expense from euros to Chinese yuan. The conversion often reinforced my fear but gradually, I stopped converting, and that’s when I realized: the costs in local currency were quite similar: living expenses, when measured against average incomes, weren’t that different after all.
This realization took on a harsher reality when I returned to China in 2015 and lived on a local salary for 10 months. The cost of living in China — particularly in major cities — has skyrocketed. Take rent, for example. In major cities, renting a modest one-bedroom apartment in a decent neighbourhood can easily cost anywhere between ¥4,000 and ¥7,000 per month ($553-$1,069). Compare that to similar accommodations in Paris or Geneva where I spent another five years, and it’s no longer the Europe-China divide we once imagined. Yet, the average salary in China is still far lower than in Europe, making this rent unaffordable for many.
Food costs, which were once incredibly cheap in China, have followed the same trajectory. A dozen eggs cost around ¥12, and a litre of milk hovers between ¥20-¥30. Even staple items like rice, vegetables, and meat have seen substantial price increases. Meanwhile, imported goods, from cosmetics to electronics, are often priced similarly to what you’d expect to pay in Europe, but for a population that still largely earns much less.
China, often hailed for its economic rise and success in lifting millions out of poverty, has developed an incredibly skewed income distribution. While a small fraction of its population enjoys wealth and prosperity, the majority struggle with the relentless rise in daily expenses. What baffles me is how normal this has become. When I walk into a Chinese mall, many of the stores seem almost exclusively tailored to the wealthy. The shiny façades hide the grim reality that the vast majority of the population can’t afford what’s inside.
What options do ordinary Chinese people have? Many resort to purchasing lower-quality products from online marketplaces like Alibaba and Temu. Food safety and product quality are often dubious at best, the climate impact of products of poor quality that lasts a very short lifespan is another concern. This dual economy — a world of luxury for the wealthy and bare survival for the rest — paints a stark picture of modern China. It’s a reality that deeply troubles me.
The media often celebrates China’s growing affluence, but these narratives are based on the experiences of a privileged few. China’s size means even a small percentage of the population can give the illusion of massive wealth. But beyond this privileged class lies a reality where most people cannot afford decent housing, proper healthcare, or even reliable safe food.
Having lived through this, I now realize how deep the divide runs. Despite China’s rise, the systemic inequalities that underpin the society create a profound gap — one that keeps getting wider as capitalism entrenches itself deeper. It’s a reality that hit me hard when I was there and one that should alarm all.