Is China A Third World Country? Review Of Third World Countries

Countries that remained neutral during the cold war are now considered third-world countries. Is China a third-world country? Let’s find out!

Many people mistake China for a third-world country, which it isn’t. China is classified as a second-world country, which is part of the Communist Bloc. It is also considered the largest developing country in the world.

Were you under the impression that China was a third-world country? You’ve come to the right page. Today, we’re going to discuss why China is a second-world country and other things you should know about this country’s economy. Keep reading to learn more.

In this article you will find out:

Is China a Third World Country?

No, China isn’t a third-world country. China is a second-world country. This isn’t a term that you hear often, and to be fair, it’s pretty outdated. Any country that is considered second-world was once controlled by the soviet union. These countries have economies that are centrally-planned and one-part states.

World Bank Group – World Bank Support For China

However, that only sums up the original meaning of the term second-world country. Initially, this had to do with the country’s stance during the cold war. Yet, over the years, the definitions have changed, referring to how developed a country is. If you look at it this way, a second-world country is not as stable and developed as first-world countries, but is better off than third-world countries.

Even going by the modern definition of a second-world country, China is still classified as one. It may come as a surprise to people when they think about how large the economy in China is.

Why Is China a Developing Country? Development Explained.

Any second-world country is considered a developing country. However, when people take a look a China’s economy, it seems like the country is developed and should classify as first-world. After all, it has one of the biggest economies worldwide and many millionaires and billionaires reside in China. So, why is it still considered a second-world country?

When you take a look at the wealth in China, it’s very unevenly distributed. While certain areas in the country are very developed, other parts have more poverty. To begin with, in order for a country to be considered first-world, it must have a gross national income of $12,000 USD per capita, however, China only has a GNI of $10,410.

There are still 373 million people living in poverty in China. A lot of people that are living in poverty in China are bringing home less than $5.50 USD a day.

Uneven Economic Wealth in China

The wealth in China is very unevenly distributed. This is the main reason why the country struggles to move from a developing country to a developed country. First-world (developed countries) are focused on urbanization, and over 80 percent of the population will live in urban areas.

China isn’t there yet because the country isn’t widely focused on urbanization. Only 60 percent of the population lives in urban areas. Cities around the coastal areas of China have a better economy with more middle-class and wealthy people. The center of China has more rural areas, that don’t have a strong economy. Many people struggle with earning an income in these areas.

Many businesses in China still use poor-quality manufacturing, which puts a halt in the economy’s growth rate. The poverty levels in rural China also make a big impact on the economy because there isn’t money available to go towards consumption from local businesses.

One recent study showed that the top 1 percent of Chinese citizens hold over one-third of the country’s total wealth. In contrast, the bottom 25 percent hold less than 1 percent of the country’s wealth. This big gap between rich and poor is one of the main obstacles to China’s development.

What are Third World Countries?

A third-world country was once described as a country that remained neutral during the cold war. Each of these countries ended up having a poor economy. That is what a third-world country is considered in modern times. Any country that is considered third-world is a developing country. However, the economy is much different than a second-world country because:

There is a lack of resources within the country to help boost the economy.
There are very high poverty rates throughout the country.
There is very unstable financial standing, causing businesses and residents across the country to be in a poor financial situation

There are currently 152 countries in the world that are considered the third world. That is over 80 % of the world’s population that’s living in poverty. The average GNI in third-world countries is $5,134 USD per capita.

What is China’s Unemployment Rate?

Every year statistics are taken to find out what the unemployment rate is in each country. China’s unemployment rate rarely exceeds 5 %. In 2022, the unemployment rate in China was recorded as 3.7 % and predicted to go down to 3.6 % in 2023 to 2027. The highest recorded unemployment rate in China recorded over the past ten years was in 2020 during the COVID-19 pandemic at 4.24 %.

How Do China’s Employment Wages Affect Poverty Rates?

One thing that leads to very uneven wealth across China is that there is no set minimum wage for the country. Instead, every city has a different minimum wage. The wage class will ultimately depend on the economic state of the city. Therefore, rural areas with very little resources will have much lower minimum wages than cities with better economies.

In 2019, the recorded average salary in China was $13,231 USD. The region with the highest salary average was Bejing at $24,386 USD, while the lowest salary average was in Henan at $9,835 USD. People who work in IT, software, and information transmission typically earn the most in China, while people that work in the agriculture and fishing industry earn the least.

Should China Be Considered a Special Developing Country?

Even though China is classified as a second-world country, many people would argue that it’s already a developed country. When you put the uneven wealth distribution aside, there is a very big economy within China that is able to generate enough money to be considered developed.

When it comes down to it, the World Trade Organization offers more benefits to countries that are developing than it does to developed countries. There are people that believe China is taking advantage of these privileges from the World Trade Organization. Developing countries are offered more open trade in order to improve their economic growth.

A lot of people believe that it’s not fair that a country with an economy like China can receive the same benefits that countries like Somalia and Malawi. Since countries are able to classify themselves when entering in the World Trade Organization, China always enters as developing.

This leads many people to blame China for putting a halt on third-world countries’ development. When China places itself in the same category, it reduces the amount of privileges that countries which really need them are able to receive.

Will China Become a Developed Country?

China isn’t that far off from becoming a developed country. After all, the country does have the second-largest economy and the largest military in the world. That being said, China is on the right path to moving out of the second-world category and becoming classified as developed.

There are strategic goals set in place to boost the economic stance of China. It is believed that between the years 2035 and 2050, China will become a developed country. They have put a lot of planning and work into economic and social development to allow people in the country to have a higher standard of living.

Economic Growth Rate

Between 2020 and 2035, it is predicted that China’s economic growth rate will be between 4.8 and 5.6 %. As the economy grows over the next decade or so, the wages that people in China receive will as well. The country also has plans to build a more innovative workforce, with more skilled and educated workers.

The country wants to have an average of 7 million university graduates enter the workforce on an annual basis. This plan will help to improve the labor growth rate and create more stable job positions for people in the country.

China State Council

China State Council is the supreme governing body of the People’s Republic of China. It consists of the Premier, a variable number of Vice Premiers, five State Councilors, and 29 ministers and chairs of commissions. The Secretary-General heads the General Office which handles day-to-day work in support of the State Council.

China’s Health System

China health system is a three-level system including the primary, secondary and tertiary levels. The primary health care level is the most basic and essential level, which is also the foundation of the whole health care system. The secondary health care level provides more specialized and comprehensive medical services. The tertiary health care level offers the most advanced and sophisticated medical services.

Word Bank And China

World Bank Group and World Bank support for China. The World Bank Group has supported China’s development over the past four decades through policy advice, analytic work, and financial assistance. The World Bank Group’s strategy in China is guided by the country partnership framework (CPF), which was jointly prepared with the government of China and approved by the World Bank Group Board of Executive Directors in July 2014.

Final Thoughts

Is China a developing country, or a third world country? China isn’t a third-world country. It is classified as a second-world country, or also known as a developing country. While China does have a very impressive and large economy, it only applies to certain areas of the country. There are still very high poverty rates in the rural areas of China, where resources aren’t as accessible.

Cities in the coastal regions of China have a much stronger economy. There are more job opportunities in IT, health care, sports, and more. This allows people to work jobs that have a steady schedule and regular pay. In rural areas, there is not as much opportunity to find work, and most of it is low paying, like fishing, farming, and agriculture work.

China does have a goal set in place to move from a developing country to a developed country by 2050. It already has a strong economy to work with, China just needs to put more focus on even wealth distribution. While there are many wealthy people in China, there are also many people living in poverty.

Human Development Index Ranking

HDI Rank	Country	Human Development Index (HDI)	Gross national income (GNI) per capita
1	Norway	1	66,494.00
2	Ireland	1	68,371.00
3	Switzerland	1	69,394.00
4	Hong Kong, China (SAR)	0.949	62,985.00
5	Iceland	0.949	54,682.00
6	Germany	0.947	54,682.00
7	Sweden	0.945	54,682.00
8	Australia	0.944	54,682.00
9	Netherlands	0.944	54,682.00
10	Denmark	0.94	58,662.00
11	Finland	0.938	48,511.00
12	Singapore	0.938	88,155.00
13	United Kingdom	0.932	46,071.00
14	Belgium	0.931	52,085.00
15	New Zealand	0.931	40,799.00
16	Canada	0.929	48,527.00
17	United States	0.926	63,826.00
18	Austria	0.919	56,197.00
19	Israel	0.919	40,187.00
20	Japan	0.919	42,932.00
21	Liechtenstein	0.917	131,032.00
22	Slovenia	0.917	38,080.00
23	Korea (Republic of)	0.916	43,044.00
24	Luxembourg	0.916	72,712.00
25	Spain	0.904	40,975.00
26	France	0.901	47,173.00
27	Czechia	0.9	38,109.00
28	Malta	0.895	39,555.00
29	Estonia	0.892	36,019.00
30	Italy	0.892	42,776.00
31	United Arab Emirates	0.89	67,462.00
32	Greece	0.888	30,155.00
33	Cyprus	0.887	38,207.00
34	Lithuania	0.882	35,799.00
35	Poland	0.88	31,623.00
36	Andorra	0.868	56,000.00
37	Latvia	0.866	30,282.00
38	Portugal	0.864	33,967.00
39	Slovakia	0.86	32,113.00
40	Hungary	0.854	31,329.00
41	Saudi Arabia	0.854	47,495.00
42	Bahrain	0.852	42,522.00
43	Chile	0.851	23,261.00
44	Croatia	0.85	28,070.00
45	Qatar	0.848	92,418.00
46	Argentina	0.845	21,190.00
47	Brunei Darussalam	0.838	63,965.00
48	Montenegro	0.829	21,399.00
49	Romania	0.828	29,497.00
50	Palau	0.826	19,317.00
51	Kazakhstan	0.825	22,857.00
52	Russian Federation	0.824	26,157.00
53	Belarus	0.823	18,546.00
54	Turkey	0.82	27,701.00
55	Uruguay	0.817	20,064.00
56	Bulgaria	0.816	23,325.00
57	Panama	0.815	29,558.00
58	Bahamas	0.814	33,747.00
59	Barbados	0.814	14,936.00
60	Oman	0.813	25,944.00
61	Georgia	0.812	14,429.00
62	Costa Rica	0.81	18,486.00
63	Malaysia	0.81	27,534.00
64	Kuwait	0.806	58,590.00
65	Serbia	0.806	17,192.00
66	Mauritius	0.804	25,266.00
67	Seychelles	0.796	26,903.00
68	Trinidad and Tobago	0.796	26,231.00
69	Albania	0.795	13,998.00
70	Cuba	0.783	8,621.00
71	Iran	0.783	12,447.00
72	Sri Lanka	0.782	12,707.00
73	Bosnia and Herzegovina	0.78	14,872.00
74	Grenada	0.779	15,641.00
75	Mexico	0.779	19,160.00
76	Saint Kitts and Nevis	0.779	25,038.00
77	Ukraine	0.779	13,216.00
78	Antigua and Barbuda	0.778	20,895.00
79	Peru	0.777	12,252.00
80	Thailand	0.777	17,781.00
81	Armenia	0.776	13,894.00
82	North Macedonia	0.774	15,865.00
83	Colombia	0.767	14,257.00
84	Brazil	0.765	14,263.00
85	China	0.761	16,057.00
86	Ecuador	0.759	11,044.00
87	Saint Lucia	0.759	14,616.00
88	Azerbaijan	0.756	13,784.00
89	Dominican Republic	0.756	17,591.00
90	Moldova	0.75	13,664.00
91	Algeria	0.748	11,174.00
92	Lebanon	0.744	14,655.00
93	Fiji	0.743	13,009.00
94	Dominica	0.742	11,884.00
95	Maldives	0.74	17,417.00
96	Tunisia	0.74	10,414.00
97	Saint Vincent and the Grenadines	0.738	12,378.00
98	Suriname	0.738	14,324.00
99	Mongolia	0.737	10,839.00
100	Botswana	0.735	16,437.00
101	Jamaica	0.734	9,319.00
102	Jordan	0.729	9,858.00
103	Tonga	0.728	12,224.00
104	Libya	0.725	6,365.00
105	Uzbekistan	0.724	15,688.00
106	Bolivia	0.72	7,142.00
107	Indonesia	0.718	8,554.00
108	Philippines	0.718	11,459.00
109	Belize	0.718	9,778.00
110	Samoa	0.716	6,382.00
111	Turkmenistan	0.715	6,309.00
112	Venezuela	0.711	7,045.00
113	South Africa	0.709	12,129.00
114	Palestine	0.708	6,417.00
115	Egypt	0.707	11,466.00
116	Marshall Islands	0.704	5,039.00
117	Viet Nam	0.704	7,433.00
118	Gabon	0.703	13,930.00
119	Kyrgyzstan	0.697	4,864.00
120	Morocco	0.686	7,368.00
121	Guyana	0.682	9,455.00
122	Iraq	0.674	10,801.00
123	El Salvador	0.673	8,359.00
124	Tajikistan	0.668	3,954.00
125	Cabo Verde	0.665	7,019.00
126	Guatemala	0.663	8,494.00
127	Nicaragua	0.66	5,284.00
128	Bhutan	0.654	10,746.00
129	Namibia	0.646	9,357.00
130	India	0.645	6,681.00
131	Honduras	0.645	6,681.00
132	Bangladesh	0.632	4,976.00
133	Kiribati	0.63	4,260.00
134	Sao Tome and Principe	0.625	3,952.00
135	Micronesia	0.62	3,983.00
136	Lao People’s Democratic Republic	0.613	7,413.00
137	Eswatini	0.611	7,919.00
138	Ghana	0.611	5,269.00
139	Vanuatu	0.609	3,105.00
140	Timor-Leste	0.606	4,440.00
141	Nepal	0.602	3,457.00
142	Kenya	0.601	4,244.00
143	Cambodia	0.594	4,246.00
144	Cambodia	0.592	13,944.00
145	Zambia	0.584	3,326.00
146	Myanmar	0.583	4,961.00
147	Angola	0.581	6,104.00
148	Congo	0.574	2,879.00
149	Zimbabwe	0.571	2,666.00
150	Solomon Islands	0.567	2,253.00
151	Syrian Arab Republic	0.567	3,613.00
152	Cameroon	0.563	3,581.00
153	Pakistan	0.557	5,005.00
154	Papua New Guinea	0.555	4,301.00
155	Comoros	0.554	3,099.00
156	Mauritania	0.546	5,135.00
157	Benin	0.545	3,254.00
158	Uganda	0.544	2,123.00
159	Rwanda	0.543	2,155.00
160	Nigeria	0.539	4,910.00
161	Côte d’Ivoire	0.538	5,069.00
162	Tanzania	0.529	2,600.00
163	Madagascar	0.528	1,596.00
164	Lesotho	0.527	3,151.00
165	Djibouti	0.524	5,689.00
166	Togo	0.515	1,602.00
167	Senegal	0.512	3,309.00
168	Afghanistan	0.511	2,229.00
169	Haiti	0.51	1,709.00
170	Sudan	0.51	3,829.00
171	Gambia	0.496	2,168.00
172	Ethiopia	0.485	2,207.00
173	Malawi	0.483	1,035.00
174	Congo (Democratic Republic of the)	0.48	1,063.00
175	Guinea-Bissau	0.48	1,996.00
176	Liberia	0.48	1,258.00
177	Guinea	0.477	2,405.00
178	Yemen	0.47	1,594.00
179	Eritrea	0.459	2,793.00
180	Mozambique	0.456	1,250.00
181	Burkina Faso	0.452	2,133.00
182	Sierra Leone	0.452	1,668.00
183	Mali	0.434	2,269.00
184	Burundi	0.433	754.00
185	South Sudan	0.433	2,003.00
186	Chad	0.398	1,555.00
187	Central African Republic	0.397	993.00
189	Niger	0.394	1,201.00

Source: https://hdr.undp.org/data-center/human-development-index#/indicies/HDI