Is Chinese society becoming more socially diverse? What are the major social sources of conflicts in Chinese society today?

Regarding to the intellectual elite, they experienced drastic splits and fractures Era:

Intellectuals were dismissed as “stingy ninth-rankers”. Also, Communist and Maoist critique and purge of intellectuals aborted intellectual critique during the Anti-Rightist Movement, Cultural Revolution purge of intellectuals and cadres.

However, at the beginning of the reform era, the publication of an official article under the title “The Spring of Science” offered an encouraging signal to intellectuals.  

Before the reform, the intellectual elite are the main social support within the party. However, because of the inequalities generated by marketization, they only gained very little from the economic reforms. Also, their socio-economic position is lowered. As a result, the attitude of intellectuals towards the reform is therefore no longer one of unconditional support, however, is now guided by the dictates of self-interest.

However, the intellectual elite are essential to the society, since they have knowledge of science, technology and social science, like legal studies and economics. Therefore, they can help the new economic elites to control the social opinion and affect government policies. On the other hand, there are also some possible problems of the intellectual elite, like the corruption and deterioration.

ii. Middle Class 
    Regarding the characteristics of the middle class, they are mainly well-educated, progressive in spirit; have stable salaries and consumption culture; and work in the tertial sector. There are three categories in this middle class: the upper middle class, the middle middle class and the middle lower class.

     
    Regarding the upper middle class, they are included well-paid intellectual workers, managers of middling and small enterprises in the state sector, private owners of middling and small firms, white-collar employees of firms with foreign investment and employees of state monopolies. There are about 29.3 million people are top rungs of middle class in China, which is 4% of the workforce.

    Regarding the middle lower class, they are included specialized technicians, teachers in higher education and middle schools, middle and lower level management in state enterprises, scientific researchers, rank-and-file employers in the arts or media, upper-level self employed workers and traders, lawyers and average functionaries ion government. There are about 82 million people are top rungs of middle class in China, which is 11.8% of the workforce.

iii. Urban Workers
 There are about 120 million people are urban workers in China, which is 9.3% of the workforce. However, there is the unemployment problem (workers laid off) which comes from the SEO reforms : Because of the reform of state-owned enterprises, there are 60 million workers laid off during 1995-2002. However, the state-owned enterprises still continue to reduce the staff. And so, although there are almost 1 million new positions in the mainland job market each year, it is still not be sufficient to relieve the stresses, which are included 1 million incoming labor forces, 1 million workers laid off and 1 million rural laborers flock to the urban. The unemployment rate is officialy around 4% in China today. Nevertheless, international organisations think that is more around 10%. Also, the wages depend on the productivity and workers have lost all their privileges now.

iv. The Migrant Workers
    Migrant workers are workers who come from the poor regions of China to the rich regions in order to There are around 180 million of migrant workers, which is around 11.8% of the Chinese population. Today, they are considered as an urban under class.

Also, they are vulnerable group, regarding to the problem of Hukou system:
Household registration regulations to strictly limit the legal form of peasant into the city to restrict the flow of population between town and freedom of movement in the country, in urban and rural areas to work together building a wall between the urban and rural areas separated from the "dual economy model" which generates, resulting in the urban and rural inequalities. Also, because of Hukou System and benefits, education and employment opportunities directly linked to some citizens’ access to city accounts for only non-agricultural Hukou and even pay a high price. If someone lives where they are residing in other city, then he will be treated as foreign population, do not enjoy the various benefits, as well as adequate education and employment opportunities:

As a result, Hukou system is not only enhance the system of social hierarchy, the expansion of inequality between people, but also a serious impediment to the entire country's economic and cultural development, the deterioration of the difference between the urban and rural areas and regions. Also, the implementation of the system is a deprivation of the peasants with a planned economy and the expansion of the direct economic and cultural development between urban and rural areas of difference.

v. The peasants
There are around 43% of the labour force work in the agricultural sector. In the first reforms in China, they were in favour of agriculture. Nevertheless, the development of the rural economy did not follow the rate of the urban one.

Regarding to the main problems of the peasants, which are included the incomes of the peasants are really weak, the peasants still suffer from the Hukou system and villages are less developed than the cities.

d. Increasing personal freedom
The personal freedom is increasing because Chinese citizens’ mobility and work opportunities are increasing; and new social organizations are developed.

Regarding the new social organizations, the aims are that each social class will have its own channels for protecting or expanding its interests. Before the reform era, they are under strict state control. However, after the reform era, there are more social organizations emerged, like The Accountants’ and Auditors’ Association, which is a nationwide total of 478 accounting associations were warned, fined and had authorities intervene in their work, and Lawyers’ Association. These two big organizations and the government give a fair idea of the situation of intermediate associations in today’s China.

C. What are the major social sources of conflicts in Chinese society today?

1. There are limited financial resources
   a. Peasants, migrant workers and coal miners are at the bottom of the social hierarchy. 
   Peasants, migrant workers and coal miners do not have enough protection and have low-income. For example, they cannot enjoy any benefits or pension insurance work, no regular employment and shelter, so there is no security of life. Most of them live in simple camp conditions or safety of the dormitories. Also, due to their low educational level, most of them engage aversive job and are discriminated by the city people. And then, their salaries are always kept back by their employers or local government.
   
   b. There are the widening gaps urban and rural development, rich and poor, and different regions in recent years. 
   According to Nickum, China is one of the most egalitarian economies in the world now, and also has reached near-American levels of disparity. According to Wall Street Journal, there is 1% top of the American families holds 33.4% of the wealth in America in 2004. In contrast, there is 1% top of the Chinese families holds 60% of the wealth in China.

c. The social welfare are also lacked in China

Regarding the education welfare, according to the results of the nation-wide census in 2000, city populations aged 15 and above are educated 9.8 years in average. In contrast, rural village populations aged 15 and above are educated just 6.85 years in average. Regarding the social security welfare, there are just 44% of the rural poor are given dole and security.

Particularly, the medical system is the major problem and source of the conflicts in China: Regarding the medical service, there is about two-thirds of citizens in China are not able to afford a decent medical service, while there is about one-thirds of citizens in China are able to afford a decent medical service in these days: There is estimated 200 million upper-middle class Chinese citizens can afford decent medical service and other 300million civil servants have covered their medical costs by the government. In contrast, there are only about 1.4% of citizens in American are not able to afford a decent medical service. Regarding the medical treatment welfare, the rural health insurance coverage is just 9.6%, the urban health insurance coverage is 42.1%. As the sick people, migrant workers and coal miners are poor and do not have money, they are not able to afford a hospital visit. The prevailing mentality of the elite is that: If the poor people do not have enough money, they will not deserve anything better. Consequently, the crises for mining workers, migrant workers and in healthcare are reaching an essential point.

2. There are not many people who help the underprivileged
   a. Business people
   Business people just focus on how to earn more income. Mine owners disregard the safety regulations that compromising the safety of the workers, not improving the working conditions. And then, the workers’ salaries are always kept back by their employers or local government and the employers do not offer adequate social welfare to them.
   
   b. The intellectuals and elites
   Most of the intellectuals and elites are not interested on the problems of the underprivileged. According to Hu Zuoxiu, one of the members of the Chinese Academy of Science, said that the deaths of the Chinese coal miners are not avoidable as Chinese are too poor. He also argued that the main source of mining problem is poverty, instead of corruption problems.
   

Absolute poverty

According to the United Nations, there are almost 90 million peasants are reduced to absolute poverty in China, which are included peasants who earn equal or less than $882 annual per-capita income.

Also, elitism can be found in housing, healthcare and education: For example, the top universities are only for people who have money.

3. There are inadequate built-in mechanisms which help the underprivileged

There are no unions which represent migrant workers and independent labor unions; there are any established channels for struggling poor people to vent grievances; and there are also any check and balances when power abuse exists. Also, corruption is rampant in different places, like hospitals and coal mines…etc. Power-for-money deals are made. A lot of local governments take payoffs to accept mine owners that they get away with safety violations. For examples, at the Sunjiawan Mine in Liaoning Province, although the human resources director was responsible for the mine directly, he took money and outsources the mine to a team that had no track record of safety. The consequence was the death of 214 miners. Therefore, we can see that the local governments take bribes to ignore safety issues.

In some cases, private firm owners collaborated with local governments to cover up the injuries and death toll which are aimed to prevent their mines from being shut down. For example, managers reported that there is only 5 miners were missing in Xinjing. However, Xinhua News Agency raised that there is 57 miners who were missing.

Therefore, we can see that there is any fundamental and systematic overhaul has been established.

4. Chinese media do not speak out for the poor, the underprivileged and the weak.
   Even though the Chinese media report on some problems, there is any clear indication that the coverage has generated rendered any significant result and a momentum. When the media cover the disasters, for the back wages and the predicament of the poor in general…etc, the coverage of the media is superficial at times and sporadic at best.
   
5. There is the value erosions

Unbridled greed is the norm now, instead of the exception. Some of the mine owners would rather do nothing to increase production at the expense of mine workers’ safety; the well trusted and highly educated doctors would take payoffs to deliver what they are paid and trained to do to treat patients; and so on. The problem is that, according to Hana Brixi of WHO, says healthcare provider in China”…concentrate on those who have resources to spend. They provide excessive services to those who can pay, and limited or no service at all to those who are unable to pay.” (Lim, March 2, 2006)

Power-money collusion are happened in the mining industry (that coal mine owners and managers bribe local government so they could get away with violations of the safety regulations) and in hospitals (that people have money to get lavish treatment while poor sick people are ignored. When some practice may be illegal and should be dealt with based on laws, laws are possible not able to solve all problems, particularly when legal system is not well established. Therefore, moral standards are the fundamental importance in addressing problems in China in these days.

6. Polarization and inequality
   There are a variety of bases and structures of inequality within the People’s Republic: class and regional location…etc constitute powerful sources of conflicts and spurs to resistance.

Gini coefficient:
According to the data publicized by World Bank, the Gini coefficient in China has increased from 0.16 before Reform and Opening policy was introduced to 0.47 at present. It has passed 0.4--the warning line and is higher than all the developed countries. Some experts estimate that the income gap is wider because some people have covert income.

According to World Bank's report, only 29 countries' Gini coefficient is higher than China but 27 are from Latin America and Africa. Only 2 are from Asia and they are Malaysia and Philippines.

In figure 2.5, we can see that the changes of the Gini Coefficient in China are significantly and positively increasing. Therefore, the problems of polarization and inequality in China are much more serious than before.

In figure 2.1(in nest page), we can see that the per capita income changes of urban and rural residents in China are significantly and positively increasing. Therefore, the problems of polarization and inequality in rural and urban cities in China are much more serious than before.

Because of this, there is dissatisfaction with the grassroots, and the subjects to unfair treatment groups even more have a hatred of rich. Therefore, when the rich oppress the civilian case is happened, it has ignited the hatred of the poor and lead to serious social unrest.

The reason of polarization of rich and poor / inequality:

1. The widening gap between regions

There are regional industrial backwardness, bad quality of management and low living standards in these regions. Also, says Hu Angang, a researcher at the Chinese Academy of Sciences in Beijing:“ China is like “One country, four world”. Also, calculated per capita share in per capita purchasing power:
First World, included Shanghai and Beijing, has to catch up with the rich countries; , included Tianjin, Zhejiang, Guangdong, Fujian, Jiangsu and Liaoning, has reached the basic level of the world's middle-income countries; , included Shandong, Heilongjiang, Jilin, Hainan and Hubei, is globally ranked middle and , Midwest, is globally ranked less than middle.

The reason why the gap between regions is widening is that: in the reform, the economic development of different regions is materially unbalanced: Offer preferential policy and give priority to the development of the East ( coastal region ), and so East is benefited apparently: Special economic zones (which is including Guangdong Province, Shenzhen, Zhuhai, Shantou and Xiamen in Fujian Province) and Shanghai and other 14 as "coastal open cities" of economic policy and economic management system, building on the use of foreign capital to absorb mainly the implementation of economic ownership to the socialist public ownership as the leading diversified structure; economic activities at the national macroeconomic regulation and control under the guidance to market adjustment mainly; be concessions for foreign investment and facilitate. Therefore, the special economic zones as a foreign exchange windows, at a certain period of time through the policy of the Central Government to give the advantage of strengths and areas the two together, the region's economy in general a lot of in excess of the speed of growth of per capita economic strength of its approach or exceed the medium-developed countries (regions) level.

In contrast, Midwest has gained less from the reform since the special economic zones are not included Midwest region. And so the Midwest people were by no means satisfied. The gap between regions, trifles and envious, has led to the crisis of society stability.

2. The impact of accession to the WTO

   After China access to the WTO, they have to open their local market to the international market. The foreign agriculture has well developed technical skills, so their export price is much lower than China. And so the China agriculture is faced to huge competition. For example, the China export price of wheat is ¥3163. However, the USA export price of wheat is ¥1100 and the Australia export price of wheat is ¥1050. And so we can see that the china agriculture is facing huge competition in the global market. When China's agricultural products market opens, the Chinese farmers still need to have a huge improvement, in order to complete with foreign countries.

D. Conclusion
In conclusion, because of the reform, the Chinese society is becoming more socially diverse and there are more and more sources in the Chinese Society. Also, in these day under the Hu Jintao’s leadership, at the Hu Jintao’s concept of scientific development put forward by co-ordinating range of 5 (which are included overall planning the urban and rural development, region development, economic and social development…etc), from the opposite point of view, are the sources of the conflicts. Particularly that China is facing huge competition in the global market after the accession to the WTO and the implementation of the foreign investment attraction policy. If Chinese government does not resolve the relevant conflicts as soon as possible, China will be faced and developed more conflicts than before. Therefore, resolving the problem is becoming more and more important to China in order to achieve the goal of" setting up a harmonious society".

Footnotes

1. He Qinglian, “A Listing Social Structure”, in Chaohua Wang (ed.) One China, Many Paths, London and New York: Verso, 2003, pp.163-188.
2. Elizabeth J. Perry and Mark Selden, “Introduction: Reform and resistance in contemporary China”, in Elizabeth J. Perry and Mark Selden (eds.), Chinese Society: Change, Conflict and Resistance, New York: Routledge, 2000.
3. UNDP, China Human Development Report 2005, Chapter II The State of Equity in China: Income and Wealth Distribution.
4. Yanmin Yu, “Market Economy and Social Justice”, Journal of Comparative Asian Development, Vol.5, No.1, Spring 2006, pp.131-148.
5. 曾仲榮，“構建和諧社會”，中國國情第一課：解構胡溫新思維，香港：经济日报出版社，2006
6. Dajiyuan, 戶口制度的陰暗面,作者﹕農奴, http://www.epochtimes.com/b5/1/3/15/n58475.htm

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