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t's up to you if you want to ignore these 900 million rich Chinese
Only roughly 1 out of 1000 Chinese families have more than USD 1 million in assets. For comparison: roughly 1 out of 6 Swiss or 1 out of 14 US families do.
So only 1.5 million Chinese households can be considered rich - leaving 1.4 billion non-rich households.
400 million are even too poor to survive - they can't afford proper education for their children or proper health care when they're old, and might even struggle to get enough food on their plates. They will raise badly educated and unhealthy children who will turn out poor themselves again, financially unable to take care of their parents when they are old - a vicious circle. So it certainly is an issue worth discussing.
Nevertheless, I guess it would be more important to take care that wealth in China is distributed more equally. The question is just: how should this happen?
One option might be to do it like European nations: levying high taxes on the rich to pay for the poor. But this approach prooved to be worthless: the rich moved abroad and pay taxes in the US, England, Monaco, Switzerland or other tax havens, whilst politicians always promise more and more benefits to the poor, creating one of the largest debt crises in recent history.
So perhaps, China might want to learn from places like Switzerland, that managed to keep low taxes in spite of having good social security. Just say that every worker must pay a given amount - e.g. 5 percent of his or her income, but not more than a given amount (e.g. 500 Yuan/month) - to the government, which then distributes the money amongst the elderly or those who aren't able to work properly. Another 5 percent would go to a toughly regulated pension institution, where the money is simply saved and invested in conservative, safe assets. Those savings will be paid when the worker gets old (but it will be his savings).
The health care system, however, shouldn't be copied from Switzerland, as it is quite expensive here - China couldn't afford that. Better take on Singapore's approach: introduce health care accounts in which people can save money for their future health care needs, whilst covering tail-risks (like expensive cancer treatments or the like) via a government insurance until people are rich enough to pay for them themselves.
If the Chinese know that, no matter what, they can survive, they will not be so reluctant to spending money, consume more - and build the largest consumer society in the world by 2030. And by the time we are old, China will also have a decent amount of rich people - and no poor ones anymore.