Rank	Region name	Estimated Relative Poverty Rate %
1	Beijing	2.0
2	Shanghai	2.1
3	Zhejiang	3.5
4	Jiangsu	3.8
5	Tianjin	4.0
6	Guangdong	4.5
7	Fujian	5.0
8	Shandong	5.5
9	Liaoning	6.5
10	Chongqing	7.0
11	Hubei	7.5
12	Hunan	8.0
13	Hebei	8.5
14	Henan	9.0
15	Jiangxi	9.5
16	Anhui	10.0
17	Shanxi	10.5
18	Shaanxi	11.0
19	Jilin	11.5
20	Heilongjiang	12.0
21	Sichuan	12.5
22	Inner Mongol	13.0
23	Guangxi	13.5
24	Hainan	14.0
25	Yunnan	14.5
26	Ningxia	15.0
27	Qinghai	15.5
28	Xinjiang	16.0
29	Gansu	16.5
30	Guizhou	17.0
31	Xizang	18.0
32	Paracel Islands	N/A

In 2020, China officially eradicated absolute poverty, achieving a significant milestone that elevated nearly 100 million individuals above the national poverty threshold.

By 2026, the rates of absolute poverty are projected to remain close to zero across all provinces. Nevertheless, relative poverty continues to exist, especially when assessed against higher international standards appropriate for an upper-middle-income nation, such as the World Bank’s $8.30 per day benchmark (2021 PPP).

National forecasts suggest that approximately 11-13% of the population will fall below this line in 2026.

Variations among provinces illustrate economic inequalities, with coastal areas performing better than western and remote regions.

Regional Disparities in Relative Poverty

The shift in China from managing absolute poverty to addressing relative poverty underscores persistent challenges.

Analysts anticipate that the national poverty rate at the upper-middle-income standard will decrease to about 11.9% by 2026, a reduction from higher figures in previous years.

The eastern provinces are at the forefront of the lowest poverty rates due to strong industrialization, elevated per capita incomes, and urban concentration.

Beijing and Shanghai are at the top with estimates around 2%, supported by per capita disposable incomes surpassing 80,000 yuan annually and a robust service sector.

Following them are Zhejiang, Jiangsu, and Guangdong, which benefit from export-driven manufacturing and technology centers that enhance wage growth and job opportunities.

The advantages of coastal regions arise from decades of reform policies that have prioritized special economic zones.

These regions attract investments, generate employment, and promote higher consumption levels.

Urban households in these provinces enjoy disposable incomes exceeding 50,000 yuan, significantly higher than the national rural average of approximately 23,000 yuan.

The low relative poverty in these areas is attributed to sustained growth rates above 5% and effective social safety nets that mitigate vulnerabilities.

Challenges in Western and Remote Regions

Western provinces experience a higher rate of relative poverty, frequently surpassing 15%. Gansu, Guizhou, and Xizang (Tibet) are the most affected, with estimates reaching as high as 18%.

The development in these areas is impeded by rugged terrain, limited arable land, and concentrations of ethnic minorities.

Although historical efforts in poverty alleviation have focused on these regions, the situation has worsened post-2020, as lower baseline incomes have resulted in more residents falling below relative poverty thresholds.

Guizhou and Gansu serve as prime examples of ongoing challenges. In Guizhou, despite initiatives leveraging big data and promoting tourism, rural incomes continue to lag behind. Gansu is hindered by arid conditions and inadequate infrastructure.

Xizang faces challenges due to its high altitude and isolation, which restrict economic diversification.

Other provinces such as Yunnan, Qinghai, and Xinjiang encounter similar geographic obstacles and a heavy reliance on primary industries.

Nationwide, formerly impoverished counties have seen rural disposable incomes rise to 17,522 yuan in 2024, outpacing the national average growth.

However, this increase originates from a low starting point, which keeps relative poverty levels high.

While western regions benefit from targeted support, the migration of young talent to eastern cities often exacerbates the situation, perpetuating cycles of poverty.

Underlying Factors and Policy Implications

Economic geography accounts for much of the observed variation. The eastern regions make a significant contribution to GDP, with the Yangtze River Delta and Pearl River Delta leading in innovation and exports.

In contrast, western regions, despite their resource abundance, struggle with higher transportation costs and climate-related vulnerabilities.

The urban-rural divide exacerbates these issues: urban incomes at the national level are twice those of rural areas, a gap that has narrowed slightly but remains substantial.

Northeastern provinces such as Heilongjiang and Jilin exhibit moderate growth rates due to industrial decline and an aging demographic.

Central provinces like Henan and Hunan manage a mix of agriculture and manufacturing but still fall behind their coastal counterparts.

China is transitioning towards rural revitalization, focusing on industrial development, education, and infrastructure improvements in underperforming regions.

Since 2020, investments exceeding 850 billion yuan have been made to enhance services, yet the persistence of relative poverty necessitates more comprehensive reforms: strengthening social protection, fostering equitable growth, and tackling inequality.

Future projections anticipate a continued GDP growth rate of 4-5% and the maintenance of current policies. However, risks such as demographic aging and external shocks could exacerbate existing disparities.

The successful models from the east, when replicated in the west through collaborative assistance, provide a glimmer of hope.

Addressing these disparities requires a sustained commitment to inclusive development.

Based on:

• National Bureau of Statistics of China. (2025). Statistical communiqué of the People’s Republic of China on the 2024 national economic and social development. http://www.stats.gov.cn/english/PressRelease/202502/t20250228_1958822.html
• Asian Development Bank. (2025). People’s Republic of China: Poverty. https://www.adb.org/where-we-work/prc/poverty