Travel Reference
In-Depth Information
Take away taxes and the like, however, and Beijingers have an average disposable in-
come that's a little less comfortable, just RMB32,903 (US$5,170). This is about 40 percent
of GDP per capita, which is still about 10 percent lower than many developed countries. In
April of 2012 official figures put Beijing's inflation rate (CPI) at 3.5 percent (0.3 percent
above the national average). When living a life in downtown Beijing, however, this might
sometimes feel a little off. It's not unusual to hear stories of rent being jacked up by 20
percent between lease periods. Gasoline prices at the pump went up by around 50 percent
between 2009 and 2012, and food seems to constantly be more expensive than the last time
you bought it. Professor Patrick Chovanec of Tsinghua University's School of Economics
and Management ran his own Beijing-based “KFC index” experiment to illustrate. Over a
period of two years and eight months, between 2009 and 2012, his standard meal—large
popcorn chicken, small fries, and a large Coke—went up by 53.5 percent, from RMB21.50
to RMB33.00. This was somewhat higher than official figures, which put food inflation at
5.6 percent in July 2012.
In 2011, the unemployment figure in Beijing was 1.39 percent, a relatively low number
when compared to other Chinese cities. Those under the age of 35 accounted for 38 percent
of the unemployed population. Additionally, the city is still in need of skilled staff for vari-
ous industries, including IT, manufacturing, avionics, transportation, and agricultural devel-
opment.
Over the last several decades, the government has made massive investments to boost
Beijing's development. The Olympics alone led to a major injection into infrastructure, yet
the rapid expansion didn't end with the closing ceremony. Since 2008 alone, 11 subway
lines have been added, with plans for a total of 19 by 2015. This will mean an estim-
ated total investment of around RMB200 billion (US$29.2 billion). It has also encouraged
new and increased concentrations of companies around transport-rich areas. It will also
free up many of heavily congested roads in Beijing—theoretically. A second airport is also
in the pipeline, this one to be located 46 kilometers (29 miles) from the city's center in
southern Daxing district. Due for completion in 2017, this will connect Beijing even more
strongly with port city Tianjin (already connected by high-speed train) and surrounding He-
bei province.
Another key contribution to Beijing's economic rise is the development of major com-
mercial hubs. Just some of the major financial development zones include the Beijing Cen-
tral Business District (CBD), centered around Guomao in Chaoyang district; Wangfujing
