A Financial Times investigation has raised significant questions about China's widely publicized claim to have eliminated absolute poverty by 2020, challenging both the methodology and the underlying data that supported Beijing's landmark announcement.
The investigation centers on the metrics used by Chinese authorities to measure poverty elimination. While China declared victory over absolute poverty in February 2021—a cornerstone achievement of Xi Jinping's first decade in power—the FT analysis suggests the threshold used was considerably lower than international standards.
Methodology Under Scrutiny
According to the investigation, China defined its poverty line at an annual income of 2,300 yuan (approximately $320) in 2010 prices, adjusted for inflation to roughly 4,000 yuan ($560) by 2020. This threshold falls substantially below the World Bank's international poverty line of $2.15 per day (approximately $785 per year at 2020 exchange rates).
The FT report indicates that using international standards, tens of millions of Chinese citizens would still be classified as living in poverty. The investigation draws on data from household surveys, academic research, and interviews with rural residents in provinces that were declared poverty-free.
Regional Disparities Persist
The investigation highlights persistent income disparities between urban coastal regions and rural interior provinces. In Guizhou, Yunnan, and Gansu—provinces that historically ranked among China's poorest—the FT found households with incomes barely above the official poverty line, raising questions about the sustainability of poverty alleviation gains.
One particularly striking finding concerns the practice of "concentrated poverty alleviation," where local governments relocated rural residents to newly constructed housing developments. While these programs moved people above the poverty line on paper, some relocated families reported difficulties finding employment and maintaining livelihoods in their new locations.
