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IntroductionDuring the reform era since 1979, the Chinese economy has been characterised by rapid growth and increasing inter-regional disparity. The economic growth in the eastern (coastal) region has been faster than that in the western region [1]. During the period from 1980 to 1994, the real GDP of the eastern region grew at an annual rate of 11.5 percent on average, compared to 9.4 percent in the western region (SSB: SYOC, 1981-1995, resulting in a widening inter-regional economic gap between the two regions. This disparity can be attributed to many factors such as economic reforms and open-door policy in favour of the eastern region, the different economic structure and resource conditions, coastoriented regional policy and direct foreign investment.Several studies have examined the influence of economic reforms and regional policy on regional economic development in China. These include Cannon (1990),

The future of the reforms in China ultimately depends on whether, and if so to what extent, reforms introduced in the recent past have improved the consumption and the standard of living of the Chinese people. It also depends on whether any such gains in the standard of living have been widely spread among the whole population. Since 1978 real per capita consumption in China has risen at an average annual rate of 7 per cent which is more than three and a half times that of the preceding 21 years. As a result, the standard of living of the average Chinese citizen in 1990 was more than double that of 1978. However, the growth of consumption and the living standard was rather uneven during the reform period. During the first phase of the reforms (1978–85) the consumption standard increased rapidly without widening existing income disparity. During the second phase (1985–90), however, improvements in consumption standards slowed significantly amidst rising inflation and growing income inequality. The question is whether the recent trend of a relatively slow rise in the standard of living and greater income disparity will continue in the 1990s. The purpose of this article is to examine the recent trends and changes in the level, structure and differentials of Chinese consumption and living standards, and to assess their prospects for the 1990s

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The rate of urbanization and its implications in post‐Mao China have been underestimated in most recent studies on China’s urbanization as they have excluded the rising urban floating population. Making use of recently available floating population survey data assesses the significance of China’s urban floating population and its socio‐economic consequences and suggests remedial measures to control its flow. Finds that the floating population caused China to experience one of the highest urban population growths among the developing countries. The floating population has increased rural‐urban labour mobility and helped to eliminate the dualistic nature of Chinese society. But it has also caused oveer‐urbanization and environmental pollution and created certain social problems. To control the flow of the urban floating population, argues that the government should increasingly rely on indirect market‐based control mechanisms.